Quick Breakdown
- The US Senate is scheduled to vote on the CLARITY Act next Thursday, according to Senator Tim Scott.
- Lawmakers remain divided over DeFi compliance, sanctions enforcement, and controls on illicit finance.
- Ongoing regulatory uncertainty has been linked to recent crypto market outflows and volatility.
The long-awaited Digital Asset Market Clarity Act is heading to the US Senate floor next week, potentially marking a major turning point for crypto regulation in the country.
US Senator Tim Scott confirmed on Tuesday that the Senate will vote on the market structure bill on Thursday, saying lawmakers are ready to “get on the record” after months of negotiations and revisions.
Scott noted that multiple drafts of the legislation have circulated among committee members for over six months, signalling that the bill is nearing a decisive moment.
The development aligns with earlier comments from White House AI and crypto czar David Sacks, who said in December that the bill was on track for a Senate markup in January.
The House of Representatives passed the CLARITY Act in July 2025. If the Senate approves the bill without amendments, it will move directly to President Donald Trump’s desk for final approval, bypassing a return to the House.
Industry split as Senate negotiations continue
Despite growing momentum, the bill remains controversial within the crypto industry.
MetaLeX founder and crypto lawyer Gabriel Shapiro said the US is likely to pass a market structure framework, though concerns around illicit finance rules remain unresolved. He suggested a compromise could still emerge.
Others are more cautious. Galaxy Digital’s head of research, Alex Thorn, said bipartisan agreement is far from guaranteed. Following a Senate meeting on Tuesday, Thorn noted that Democrats are still pushing for changes, including stricter sanctions compliance for DeFi front-end interfaces and expanded powers for the Treasury Department’s Office of Foreign Assets Control to act against illicit actors.
items that still need discussion:
– handling of stablecoin yield
– ethics / conflicts of interest questions
– ensuring market regulators have bipartisan quorum
– how to formulate BRCA / self-custody language
– extent and language of software dev protections from money…— Alex Thorn (@intangiblecoins) January 6, 2026
However, Castle Island Ventures founding partner Nic Carter described those demands as “pretty reasonable,” suggesting they may not derail the bill entirely.
Regulatory uncertainty fuels market volatility
Some market participants believe delays around the CLARITY Act have already weighed on crypto markets.
CoinShares recently linked $952 million in weekly outflows from crypto investment products, recorded in the week ending December 19, to prolonged regulatory uncertainty surrounding the bill.
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