Senator Tim Scott: The US CLARITY Act Is Set For Markup Next Week

Senator Tim Scott has now confirmed that the Digital Asset Market Clarity Act will move towards a Senate markup on January 15.

The wait for a clear set of rules for the US crypto industry may finally be coming to an end. 

Senator Tim Scott, who chairs the Senate Banking Committee, announced that the CLARITY Act is moving to the next stage.

On Tuesday, he confirmed that his committee will hold a formal vote, known as a markup on January 15. 

This move represents a major effort to bring order to the digital asset market.

The Road to the CLARITY Act Senate Markup

Getting this bill to the Senate floor has been a long and difficult journey. The House of Representatives already approved the bill back in July with a strong bipartisan vote.

Since then, the focus has shifted to the Senate, where progress has been slower. 

However, the appointment of David Sacks as the White House AI and crypto czar has added new energy to the process.

Sacks has been a supporter of the bill from the onset, and has even called it a “landmark” piece of legislation. 

He recently shared on social media that Senator Scott and Senator John Boozman confirmed the January timeline.

If the Senate passes the bill without making any major changes, it could go straight to President Donald Trump for his final signature. 

This would avoid the need for the House to vote on it again and speed up the entire process.

Dividing Power Between the SEC and the CFTC

The most important part of the CLARITY Act is how it defines different types of digital assets. 

For a long time, the SEC and the CFTC have fought over who gets to regulate tokens like Bitcoin and Ethereum. 

This bill is expected to create three clear categories including digital commodities, investment contract assets and permitted payment stablecoins.

Under this plan, the CFTC would gain exclusive power over the spot market for digital commodities. 

This is a huge win for the industry, as many firms find the CFTC’s rules easier to follow than the SEC’s strict securities laws. 

Meanwhile, the SEC would keep control over assets that function like traditional investments. 

Challenges Facing the CLARITY Act Senate Markup

Despite the optimism from Republican leaders, the bill still faces several hurdles. Bipartisan support is not yet guaranteed, as there are still several sticking points between the two parties. 

Democrats are reportedly pushing for stricter rules on defi. They want to make sure that these platforms can block illegal transactions and comply with international sanctions.

There are also worries about ethics and consumer protection. Some negotiators want to include standards that would prevent senior government officials from profiting from their own crypto policies. 

Senator John Kennedy noted that while a markup is planned for next week, it is still unclear if both sides can reach a compromise.

If they cannot agree, the vote might end up being a partisan one, which could slow down its progress in the full Senate.

Related Reading: TD Cowen Flags Prolonged Path for U.S. Crypto Market Structure Bill

The Battle Over Stablecoins and Bank Interests

Another major part of the debate involves how stablecoins are handled. Last year, the government passed the GENIUS Act, which set the rules for how stablecoins are backed. 

However, a new battle has started over whether these digital dollars can pay interest to their holders.

The banking industry is lobbying hard to prevent crypto firms from paying yield on stablecoins. 

They argue that if stablecoins act like savings accounts, they should be regulated exactly like banks.

On the other hand, crypto executives like Faryar Shirzad from Coinbase warn that banning interest will hurt American competitiveness.

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