The CLARITY Act, short for the Crypto Market Structure Act, is nearing Senate action with a markup anticipated in January as White House crypto adviser signals a measured, deliberate approach to governance and market-structure reform.

Senators plan to introduce the bill in the Senate next month to spark debate, with amendments likely before a full chamber vote, and a central aim of reducing legal uncertainty and boosting institutional participation.

Lawmakers may refine preemption language to limit overlapping state rules while preserving state enforcement authority.

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Overall goal is to reduce legal uncertainty, encourage institutional participation, and align US regulation with other jurisdictions that already offer regulatory clarity.

Delays attributed to the recent government shutdown but regulators continued meetings with industry executives to maintain momentum toward passage.

The bill seeks to resolve jurisdictional disputes between the SEC and CFTC and strengthen guardrails for spot crypto markets.

Amendments are expected to focus on asset classification (digital commodity vs. security), investor protections (disclosures, custody, conflicts), and implementation timelines for registration and coordination.

Potential benefits cited include regulatory clarity, increased institutional confidence, and improved consumer protection in the crypto market.

Senate committees have circulated drafts akin to the House bill, with debates likely on topics like DeFi and anti-money-laundering standards.

OCC has authorized banks to conduct riskless principal crypto-asset transactions, signaling broader crypto integration by traditional lenders.

Bipartisan support for clarifying US crypto rules is building, with cooperation cited between administrations as a driver for American competitiveness.