The CLARITY Act is about to pass the Senate, marking a critical moment for crypto regulation, with industry disagreements intensifying

With the upcoming submission of the “Digital Asset Market Transparency Act” (CLARITY Act) to the U.S. Senate for review, the uncertainty surrounding cryptocurrency regulation has once again become a focal point in the market. This bill, regarded as a core piece of legislation shaping the structure of the U.S. crypto market, is at a critical juncture, with industry leaders holding divided opinions on its prospects.

Following the latest bipartisan Senate meeting, several crypto industry figures publicly shared their views. Alex Thorn, Research Director at Galaxy Digital, expressed cautious or even somewhat pessimistic outlook regarding the short-term prospects of passing the CLARITY Act. He pointed out that the Republicans are pushing for the Senate Banking Committee to review the bill on January 15, but Democrats still hope to add multiple amendments. Whether a true bipartisan consensus can be reached remains uncertain.

These potential amendments include requiring decentralized finance (DeFi) frontends to comply with sanctions regulations and granting the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) more direct enforcement authority. Additionally, key unresolved issues include the attribution of stablecoin yields, moral hazard and conflicts of interest, and coordination mechanisms among regulatory agencies, which constitute major obstacles to advancing the CLARITY bill in the Senate.

Notably, Senate Banking Committee Chairman Tim Scott has explicitly stated that a formal vote on the crypto market structure will take place next week, emphasizing that the committee has reviewed multiple draft bills over the past few months. This statement provides procedural certainty for the bill’s progress but does not eliminate political disagreements.

Market insiders hold mixed views. Scott Johnson, Partner at Van Buren Capital, believes that without bipartisan support, the CLARITY bill may require more hearings and negotiations to reach a compromise. He warned that rushing to push through a flawed crypto regulation bill amid an election cycle could have long-term negative impacts.

Plume’s Chief Legal Counsel Salman Banaei also expressed concerns about next week’s review outcome, suggesting that if the current version is seen as the “final version,” Democratic support may be limited. Conversely, Gabriel Shapiro, Founder of MetaLex, remains optimistic, believing that the U.S. is not far from officially passing a comprehensive cryptocurrency market structure bill.

Overall, the direction of the CLARITY Act will profoundly influence the U.S. crypto regulatory framework, DeFi compliance requirements, and stablecoin policy expectations. In the short term, policy battles around keywords such as “Senate review of the CLARITY Act” and “U.S. crypto market structure legislation progress” will continue to be significant variables in the crypto market.