Clarity Act Update: Crypto Market Oversight Bill Advances in Senate

The Clarity Act, formally known as the Digital Asset Market Clarity Act, is very much alive and moving through Capitol Hill.

After passing the House in July, many expected the bill to stall in the Senate Banking Committee. However, sources indicate that Committee Chair Tim Scott and Senator Cynthia Lummis have completed the reconciliation phase, merging the Clarity Act with the Senate’s Responsible Financial Innovation Act.

This combined “mega bill” has the potential to secure a filibuster-proof majority, paving the way for a presidential signature. The legislation is designed to finalize the regulatory framework for spot crypto markets, officially placing oversight under the Commodity Futures Trading Commission (CFTC). Advocates say the act ends the era of regulatory enforcement through uncertainty.

A markup session is expected before the holiday recess, with a full Senate floor vote anticipated in January. Proponents argue the bill is the final piece of the puzzle for stabilizing and structuring the U.S. cryptocurrency market, following the Genius Act, which addressed stablecoins earlier this year.