Clarity Act Delayed In Senate; Year-End Round-Up

The U.S. Senate Banking Committee did not hold a markup hearing on the CLARITY Act, the market structure legislation to define which federal regulator will oversee what part of the digital assets (“crypto”) industry, before its Christmas break. Under the Act, the classification of a digital asset (whether as a security or a commodity) will determine the appropriate regulator. See our ALERTS of July 11 and July 18, 2025. While the committee reportedly made significant progress, lawmakers are still negotiating. The committee is working from a Republican draft. Democratic concerns include financial stability, market integrity and ethics. The delay may be disappointing for the industry but may result in a more solid bill. How quickly the committee can get to and complete its work in 2026 is uncertain.
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