Upcoming Senate Review for the CLARITY Act, According to Sacks
The CLARITY Act, designed to clarify the crypto market, is anticipated to be discussed in January, with significant bipartisan backing.
The much-anticipated Digital Asset Market Clarity Act, also known as the CLARITY Act, is poised to advance in legislative discussions this January, as explained by White House AI and crypto advisor David Sacks.
Sacks shared that both Tim Scott, Chair of the Senate Banking Committee, and John Boozman, Chair of the Agriculture Committee, have confirmed that this bipartisan fintech legislation will be reviewed by the Senate next month.
“We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for. We look forward to finishing the job in January!”
(Translation: “Estamos más cerca que nunca de aprobar la histórica legislación sobre la estructura del mercado cripto que el presidente Trump ha solicitado. ¡Esperamos terminar el trabajo en enero!”)
The CLARITY Act aims to define the distinctions between crypto securities and commodities, while also clarifying the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, among other regulatory bodies. Supporters of the proposed statute argue that it will diminish regulatory ambiguity for crypto businesses by establishing clearer compliance paths, enhancing innovation, and bolstering investor protections.
However, progress on the CLARITY Act has been slower than anticipated. Cynthia Lummis had indicated a potential timeline for the Act’s passage to President Trump before the end of 2025.
Several delays have been attributed to the recent US government shutdown impacting October and November; nonetheless, during this period, US regulators met with executives from Coinbase, Ripple, Circle, and others to ensure that the legislation retains momentum.
Ultimately, the House approved the CLARITY Act in July, and the Senate review will deliberate and potentially revise the bill before it is brought forth for a full vote. Scott will need to secure a supermajority to avert further delays or possible abandonment of the measure.
If amendments are made and the Senate passes the Act, it will return to the House for final endorsement before heading to Trump’s desk.
