Key Highlights
- The US Senate delayed the CLARITY Act markup to late January due to insufficient bipartisan support.
- Lawmakers remain divided over stablecoin rewards, DeFi oversight, and SEC–CFTC authority.
- The delay raises doubts about whether comprehensive US crypto regulation can pass in 2026.
The US Senate has delayed a key step in advancing comprehensive cryptocurrency regulation, raising new questions about whether long-awaited digital asset rules can pass Congress in 2026.
Senate Agriculture Committee Chairman John Boozman confirmed that his panel will postpone its planned markup of the Digital Asset Market Structure CLARITY Act until the final week of January.
The decision comes as lawmakers struggle to secure enough bipartisan support to move the bill forward. The markup had originally been scheduled to take place alongside a parallel session in the Senate Banking Committee this week on Thursday.
Why the markup was postponed
Boozman said the delay is intended to preserve bipartisan backing and avoid forcing a vote that could fail in committee. A markup is a critical legislative stage where lawmakers debate and amend a bill line by line before voting on whether to advance it to the full Senate.
If either the Banking or Agriculture Committee rejects the CLARITY Act, the legislation cannot proceed. The postponement suggests Senate leaders do not yet have the votes needed.
Some of the unresolved provisions that lawmakers are still debating are stablecoin reward programs, regulation of decentralized finance (DeFi), and the division of regulatory responsibility between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
What the CLARITY Act proposes
The CLARITY Act is the most expansive US crypto market structure bill proposed to date. It seeks to formally categorize digital assets, with some of the tokens falling under the SEC securities law and the rest as commodities regulated by the CFTC.
The bill would also establish federal standards for crypto exchanges, brokers, and custodians, including rules on asset segregation, disclosures, and market surveillance.
Supporters argue this approach would replace the current enforcement-driven regulatory framework with clearer statutory guidance, giving crypto firms and institutions more predictable compliance rules.
The House of Representatives passed its version of the bill in mid-2025. The Senate, however, has struggled to agree on language acceptable to lawmakers, regulators, banks, and the crypto industry.
Political and industry tensions
Opposition comes from multiple directions. Some Democrats have raised concerns that the bill could weaken investor protections. Some Republicans are opposed to possible restrictions on the yields of stablecoins and DeFi.
Industry groups have warned that late-stage amendments restricting business models could cost the bill their support.
Coinbase, the largest US crypto exchange, recently warned lawmakers it may withdraw backing for the legislation if provisions targeting stablecoin rewards remain. According to Bloomberg, the exchange views those rewards as a core part of its platform.
Warren raises retirement risk concerns
The delay also coincides with increased scrutiny from Senate Banking Committee Ranking Member Elizabeth Warren. She recently wrote to SEC Chairman Paul Atkins seeking clarity on how the agency plans to protect investors after President Donald Trump signed an executive order allowing pension funds and retirement accounts to gain exposure to crypto assets.
“For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk,” Warren wrote, warning that crypto volatility and limited transparency could put retirement savings at risk. She asked the SEC to respond by January 27, 2026.
What happens next
By pushing the markup to late January, Senate leaders hope to renegotiate disputed provisions and rebuild a workable coalition. Nonetheless, the future of the CLARITY Act is not clear due to a busy legislative schedule and the lack of consensus in political lines.
The ability of lawmakers to close these gaps will define whether the US will finally have a coherent crypto regulatory framework in 2026 or the reform will be stuck again in 2027.
Also Read: CLARITY Act to Enter Senate Markup in January, Says David Sacks
