The U.S. Senate Banking Committee is set to mark up the Digital Asset Market Clarity Act of 2025 on January 15, 2026, aiming to establish a federal framework for digital assets. The bill would divide regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Controversy surrounds provisions related to decentralized finance, with advocacy groups launching ads to oppose them.
Senator Tim Scott, Chairman of the Senate Banking Committee, announced that the committee will hold a markup on the CLARITY Act next Thursday, January 15. This legislation seeks to create clarity in the crypto industry by assigning most cryptocurrencies to the oversight of the CFTC, seen as more industry-friendly, while the SEC would focus on token sales and securities-like offerings.
The bill follows the passage of the GENIUS Act last year, which regulated stablecoins such as USDC and USDT. Recently, the SEC has adopted a more accommodating stance, approving crypto ETFs and resolving most enforcement actions.
However, the DeFi provisions have drawn criticism. The advocacy group Investors For Transparency launched prime-time Fox News ads this week, urging viewers to contact senators and oppose DeFi language in the bill. The ads, highlighted by crypto journalist Eleanor Terrett on X, argue that these provisions are inadequate and could allow DeFi services to evade regulatory scrutiny, weakening consumer protections.
Former federal enforcement attorney Brandon Perry expressed concerns, stating, “helpful in some ways, but does not eliminate the regulatory ambiguity so much as relocate it. By leaving concepts like 'entrepreneurial or managerial efforts' to future SEC guidance and rulemaking, the bill risks recreating the same uncertainty through interpretive guidance that the industry has seen through regulation by enforcement.” He warned this could delay clarity for years.
Meanwhile, the crypto market is wavering, with Bitcoin trading around $90,000 after dipping from a high of $94,500. Analysts suggest the bill's passage, expected with over 80% odds on Polymarket, may not spark a rally, as the market has already priced it in, potentially leading to a 'sell the news' reaction. Broader factors like interest rate cuts could influence future movements.
