US Senate Crypto Market Structure Bill Hits Markup This Week — Here’s What’s Coming
The Senate's gearing up to put its stamp on crypto's rulebook—and the market's holding its breath.
What's in the markup?
Expect a carve-out for digital commodities, clearer lines between the SEC and CFTC, and a framework for stablecoin oversight. The bill aims to settle the 'security vs. commodity' debate that's been hanging over the industry like a bad trade. It's not about creating new red tape—it's about defining the lanes on the highway so builders can floor it.
Why this matters now
Regulatory fog has kept institutional capital parked on the sidelines. A clear structure acts like a giant 'ON-RAMP' sign for Wall Street's billions. This isn't just legislation; it's potential jet fuel for market liquidity and legitimacy. The usual political theater will play out, of course—some senators will grandstand about 'protecting retail' while quietly checking their own portfolio performance.
The bottom line
Washington's finally playing catch-up. A passed bill signals the U.S. intends to lead, not hinder, the digital asset revolution. Get ready for volatility around the headlines, but the long-term signal is clear: crypto's moving from the wild west to Main Street. Just don't expect the politicians to understand the tech any better than they understand their own banking fees.
CLARITY Act Text Set For Release
On Friday, the Banking Committee leadership indicated that the most recent bipartisan version of the bill WOULD be officially marked up early on Thursday, January 15.
The new text of the CLARITY Act will utilize the existing framework of the Digital Asset Market Clarity Act, which passed through the House in July. This means the name “CLARITY Act” will remain, but the legislation will primarily reflect the Senate’s recent collaborative efforts.
As the week unfolds, the text set for the Banking Committee vote, which has undergone final edits, is expected to be distributed to senators on Monday or Tuesday for further amendments.
According to Terret’s report, there are three major aspects that stakeholders will closely observe when the bill text is released. First, there is significant interest in what ethics rules will apply to public officials involved in the crypto space, including the President.
Second, the ongoing debate regarding stablecoin rewards remains a focal point. Finally, how both Democrats and Republicans address decentralized finance (DeFi), particularly in relation to securities trading and concerns about illicit finance, is also among the key provisions to be.
Crypto Legislation Discussions
Amanda Tuminelli, Executive Director of the DeFi Education Fund, attended recent closed-door meetings involving leaders from both crypto and securities industries, stressing the importance of the regulatory balance in a digital assets bill.
“Banks and trade associations like SIFMA have significant concerns about regulatory arbitrage, especially concerning decentralized exchanges trading tokenized securities,” she noted.
Tuminelli will also keep a keen eye on the potential inclusion of provisions related to self-custody, protections for software developers, and the Blockchain Regulatory Certainty Act (BRCA), which she considers essential for the bill’s success.
ConsenSys General Counsel Bill Hughes has also expressed Optimism about the developments leading up to the markup, indicating a hopeful outlook heading into the deliberations.
The reports suggest that Thursday could see simultaneous markups from both the Senate Banking and Agriculture Committees. However, disputes over key provisions could threaten the bill’s bipartisan nature, potentially leading to a postponement.
Negotiations between Senate Chairman John Boozman and Senator Cory Booker have seemingly continued over the weekend and may play a crucial role in determining the markup’s outcome, Terret asserted.
Featured image from DALL-E, chart from TradingView.com
