After months of legislative negotiation and industry scrutiny, the Digital Asset Market CLARITY Act is moving toward a critical juncture on Capitol Hill this week as Senate committees align timelines and prepare some key markups that could finally break the deadlock on U.S. crypto regulation.
The Senate Banking Committee released an amended draft of the CLARITY Act ahead of a scheduled markup and amendment debate, while the Senate Agriculture Committee set its own markup for late January.
Earlier today, Senate Republicans on the Banking, Housing, and Urban Affairs Committee released a series of fact sheets this week detailing the Act. The Senate’s Banking Committee markup is still scheduled for January 15.
The materials, published ahead of the committee’s markup today, frame the legislation as a comprehensive attempt to bring digital asset markets under a clear federal framework while strengthening investor protections and addressing illicit finance.
Lawmakers backing the bill argue the absence of statutory clarity has pushed activity offshore and left both investors and national security exposed.
Republicans tout consumer protection, security, and clarity in the CLARITY Act
According to the fact sheets, the CLARITY Act would establish enforceable rules distinguishing which digital assets fall under securities law and which qualify as commodities, formally dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
One section emphasizes consumer protection, stating the bill strengthens disclosure requirements, preserves existing anti-fraud authorities, and limits insider abuse. Digital asset issuers subject to the framework would remain bound by resale restrictions and anti-evasion rules, while fraud would continue to be illegal and fully enforceable by regulators.
Another focus of the legislation is national security and illicit finance. The fact sheets claim the CLARITY Act contains the strongest illicit-finance framework Congress has considered for digital assets to date.
Under the proposal, centralized intermediaries would be subject to anti-money-laundering and counter-terrorist financing obligations, strengthened sanctions compliance, and enhanced Treasury authority to respond to high-risk foreign activity.
Lawmakers say the goal is to close regulatory gaps without driving legitimate activity overseas.
The bill also addresses decentralized finance and software development, an area that has drawn concern from crypto developers. According to the committee materials, the legislation explicitly protects software developers who publish or maintain code without controlling customer funds, and preserves the right to self-custody digital assets.
Regulatory obligations would instead focus on centralized intermediaries that interact with DeFi protocols, requiring tailored risk-management and cybersecurity standards.
“Code is protected — misconduct is not,” the fact sheet states.
Supporters further argue the CLARITY Act closes loopholes rather than creating them. The bill establishes a joint SEC-CFTC advisory committee to harmonize regulatory requirements and includes provisions designed to prevent regulatory arbitrage or evasion of U.S. rules. By bringing activity onshore, lawmakers say federal oversight would be strengthened rather than diluted.
Republicans on the committee also pushed back against claims that the bill was written to benefit industry.
The materials describe the legislation as the product of years of bipartisan work, regulator engagement, and consultation with law enforcement, with an emphasis on public-interest outcomes rather than industry preferences.
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