U.S. Senate Banking Committee Unveils Clarity Act Draft
- U.S. Senate releases bipartisan Clarity Act draft.
- Focuses on stablecoins and DeFi protocols.
- SEC and CFTC to oversee digital assets.
The US Senate Banking Committee will release a draft bipartisan market structure bill, the Clarity Act, for markup on January 15, 2026, addressing stablecoins, DeFi, and ancillary assets.
The bill’s provisions could reshape regulatory frameworks for digital assets, impacting market participants with changes in compliance requirements and potentially influencing market dynamics and token valuations.
The U.S. Senate Banking Committee has released a draft of the bipartisan Clarity Act, detailing new regulations for the cryptocurrency market. The draft outlines provisions on stablecoins, DeFi protocols, and digital commodities, impacting how related industries operate.
The draft, set for markup on January 15, 2026, involves multiple federal entities. The SEC will regulate ancillary assets, while the CFTC will oversee most digital commodities. This legislative effort aims to clarify cryptocurrency regulations and enhance market structure.
The release of the Clarity Act has caused various reactions in the financial markets. Bitcoin BTC +4.80% prices have shown positive movement, partly influenced by the release of the bill and optimistic inflation data for December. The stablecoin sector will experience notable changes.
Provisions in the bill prevent stablecoins from offering passive yields, allowing rewards tied solely to transactions or liquidity activities. The bill’s trajectory reflects the ongoing jurisdictional debates between the SEC and CFTC over digital asset regulation, challenging existing market strategies.
The Clarity Act could redefine how financial institutions and third-party exchanges manage digital assets. DeFi protocols will need to align with new compliance rules, affecting their operational models. The bill indicates a regulatory shift that stakeholders in the industry must address.
The bill proposes significant changes that might impact ancillary asset classification and market transparency. Justin Slaughter from Paradigm suggests potential hurdles, stating its broad scope allows the SEC to influence numerous projects extensively. This highlights regulatory uncertainty in the market.
“This is going to be a problem for a lot of projects. The SEC still starts out with authority over basically all tokens. You can imagine a future SEC that tries to gatekeep projects and calls everything an ancillary asset.” – Justin Slaughter, Vice President of Regulatory Affairs, Paradigm
