CLARITY Act Heads to Senate Markup in January 2026; Seeks SEC/CFTC Jurisdiction on Crypto
The CLARITY Act — federal legislation to classify digital assets as securities or commodities and to clarify SEC and CFTC jurisdiction — is scheduled for Senate markup in January 2026, White House crypto and AI coordinator David Sacks said. Senate Banking Chair Tim Scott and Agriculture Chair John Boozman signalled the bill will be reviewed and possibly revised during that session. The measure, passed by the House in July, saw delays after a federal shutdown in October–November but kept regulators and industry in dialogue. If the Senate amends the bill it would return to the House before heading to President Trump for signature. The move follows related regulatory activity such as the SEC’s Trading and Markets guidance on custody of tokenized stocks and bonds. For traders, the CLARITY Act is a potential inflection point: its definitions of securities vs commodities and clarified SEC/CFTC responsibilities could materially change compliance, listing status and market access for tokens, affecting liquidity and volatility in major crypto assets. Primary keywords: CLARITY Act, crypto regulation, SEC, CFTC. Secondary keywords: securities vs commodities, Senate markup, tokenized stocks, regulatory clarity.
Neutral
The CLARITY Act increases regulatory certainty by proposing clear classifications and jurisdictional boundaries between the SEC and CFTC. For traders this is neither an outright bullish nor bearish signal for a specific crypto like BTC — rather it reduces legal uncertainty that has been a source of volatility. Short-term: announcements and Senate debate may trigger volatility as markets price in potential changes to which tokens could be treated as securities and the likely compliance costs for exchanges and custodians. Liquidity could tighten for tokens perceived at higher regulatory risk. Long-term: if the law narrows the scope of securities to fewer tokens and clearly places others under CFTC commodity oversight, it could be bullish for major non-security assets (improved listings, institutional access, clearer custody rules) and reduce regulatory tail risk, supporting steadier flows and lower risk premia. However, outcomes depend on final Senate amendments and the House–Senate reconciliation process; any provisions that broaden SEC authority or impose heavy compliance costs could be bearish for affected tokens. Overall impact: regulatory clarity is a stabilising factor but produces mixed price effects across different token types.