Since the inception of Bitcoin, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jostled for the coveted position of market regulator for the entire Cryptocurrency and Digital Asset industry. The CLARITY Act, which passed the House in July 2025 with strong bi-partisan support,[1] is meant to bring the bureaucratic tug-of-war to a close. Since its referral to the Senate Committee on Banking, Housing, and Urban Affairs in mid-September,[2] its first markup session is set for January 15^th, 2025.[3] There, the committee will discuss, amend, and vote on the bill. From there, it will likely be introduced to the Senate floor for deliberation and chamber voting.

The CLARITY Act aims to split the responsibilities for the Digital Asset and Cryptocurrency industry between the SEC – for digital assets that behave like securities – and the CFTC – for commodities that live on decentralized networks far from the reach of traditional exchanges.[4] It would set up clear rules for exchanges, brokers, and trading, and add protections for decentralized finance (DeFi) developers and validators through safe harbors. It also includes measures against central bank digital currencies (CBDCs) and ways to handle tokens that shift from investment contracts to commodities over time.[5]

For businesses, this could mean easier compliance, less risk of surprise enforcement actions, and more room to innovate in payments, trading, and blockchain tech. But there are still debates around DeFi protections, stablecoin rewards (linking back to the GENIUS Act which banned interest but was silent on rewards-based compensation), and preventing illicit use. Thus, the markup session is the proverbial fork in the road for cryptocurrency’s regulation.[6]

With this understanding, increased lobbying from traditional banks aims to strip digital assets of the ability to offer “rewards” for holding these assets.[7] This is because stablecoins and other digital assets are poised to compete directly with the banking system if the markup goes as the crypto industry wishes.[8] In turn, this is a direct threat to hundreds of billions of dollars in interest and fee collection traditional banks rely upon.[9]

Based on these developments, this is an exciting time to see how Congress shapes the future of digital assets in the United States. It could set the stage for clearer rules to help businesses thrive responsibly and create a new opportunity for business-focused attorneys to hone their skills in the next generation of digital-based finance.

[1] Nikhilesh De & Jesse Hamilton, SEC, CFTC Chiefs Say Crypto Turf Wars Over as Agencies Move Ahead on Joint Work, COINDESK (Sept. 5, 2025), https://www.coindesk.com/policy/2025/09/05/sec-cftc-chiefs-say-crypto-turf-wars-over-as-agencies-move-ahead-on-joint-work.

[2] H.R.3633 – Digital Asset Market Clarity Act of 2025, CONGRESS.GOV, https://www.congress.gov/bill/119th-congress/house-bill/3633/all-actions (last visited Jan. 21, 2026).

[3] Chairman Scott Announces Digital Asset Market Structure Markup, U.S. SENATE COMM. ON BANKING, HOUS., AND URB. AFF. (January 9, 2026), https://www.banking.senate.gov/newsroom/majority/chairman-scott-announces-digital-asset-market-structure-markup; Executive Session notice for January 15, 2026, SENATE.GOV (Jan. 15, 2026), https://www.banking.senate.gov/hearings/01/09/2026/executive-session.

[4] Paul S. Atkins, The SEC’s Approach to Digital Assets: Inside “Project Crypto”, U.S. SEC. EXCH. COMM’N (Nov. 12, 2025), https://www.sec.gov/newsroom/speeches-statements/atkins-111225-secs-approach-digital-assets-inside-project-crypto

[5] H.R.3633, CONGRESS.GOV, https://www.congress.gov/bill/119th-congress/house-bill/3633/text (last visited Jan. 21, 2026).

[6] Jesse Hamilton, This is what’s (currently) in the way of U.S. crypto market structure bill harmony, COINDESK (January 7, 2026), https://www.coindesk.com/news-analysis/2026/01/07/this-is-what-s-currently-in-the-way-of-u-s-crypto-market-structure-bill-harmony.

[7] Gino Matos, Banks are lobbying to kill crypto rewards to protect a hidden $1,400 “tax” on every household, CRYPTOSLATE (Jan. 10, 2026), https://cryptoslate.com/banks-are-lobbying-to-kill-stablecoin-rewards-to-protect-a-hidden-1400-tax-on-every-household/.

[8] Id.

[9] Id.