Key Highlights
- According to Eleanor Terrett, the CLARITY ACT is likely to be signed into law by March at the earliest
- Under U.S. President Donald Trump’s pro-crypto administration, the cryptocurrency sector is finally getting regulatory clarity
- If passed, the CLARITY Act could bring stability to a market that handles trillions of dollars in volume
With every passing day, the United States is moving towards the approval of one of the major laws for cryptocurrency. Digital Asset Market Clarity Act, also known as the CLARITY Act, is expected to go for a markup session in the next week. But here’s a big scoop from the popular face of the industry.
And March is the absolute earliest. Could even be the summer if the House decided to make changes to what the Senate sends them.
— Eleanor Terrett (@EleanorTerrett) January 8, 2026
According to reporting from Eleanor Terrett, the bill is scheduled to pass out of the Senate Banking Committee. This will happen during a committee meeting called a markup, which is scheduled for January 15, 2026.
From there, the process moves quickly. The bill would merge with related parts from the Senate Agriculture Committee. It would then go to a full vote in the Senate, return to the House of Representatives for final approval, and finally reach President Donald Trump’s desk to be signed into law.
Terrett estimates that this entire process could finish by March. This would provide the clear rules that the crypto industry had expected for years.
What the CLARITY Act Expects to Do
The CLARITY Act is a bipartisan effort introduced in the 199th Congress. Key supporters include Representative Patrick McHenry, a Republican from North Carolina, and Senators Cynthia Lummis, a Republican from Wyoming, and Kirsten Gillibrand, a Democrat from New York.
The main purpose is to create a federal framework for payment stablecoins. These are digital assets pegged to traditional currencies like the USD. The law would officially define stablecoins and require them to be backed by high-quality reserves. These reserves could be cash or assets like the U.S. Treasury securities.
Federal regulators, including the Federal Reserve and the Office of the Comptroller of the Currency, would oversee issuers. Companies would need a license, face regular audits, and must guarantee users can redeem their stablecoins for cash. This framework is expected to prevent disasters like the 2022 collapse of the TerraUSD stablecoin while supporting innovation.
The Importance of the January 15 Markup
In Congress, a “markup” is an important meeting where a committee debates, changes, and votes on a bill. The Senate Banking Committee’s markup on January 15 follows months of delay. Disputes over who should oversee stablecoins, what the reserve rules should be, and how state and federal authority overlaps had slowed progress.
If the committee approves the bill, it moves to the next stage. It will combine with provisions from the Agriculture Committee, which deals with stablecoins as commodities under the CFTC jurisdiction. This process ensures the Senate and House versions of the bill align.
The House of Representatives already passed a similar measure in 2025.
In December, SEC Chair Paul Atkins expressed hope for progress on the bill. Cardano Founder Charles Hoskinson has predicted the Act will pass in the first quarter of 2026, which could open the door for institutional investment.
Senator Cynthia Lummis said in mid-December that the bill could pass within 2 weeks, stating that it would open the “floodgates of adoption” for financial institutions.
Crypto Sector Finally Gets Regulatory Clarity Under Trump’s Pro-Crypto Administration
The CLARITY Act is part of the latest developments in digital asset regulation under the Trump administration. Other important rules are also being developed at the same time. For example, California’s Digital Financial Assets law will become effective on July 1, 2026. This state law will require licenses for crypto activities, complementing the federal effort. Other related bills are also in play.
The GENIUS Act would allow banks to issue stablecoins through special subsidiaries. The Federal Deposit Insurance Corporation proposed rules to implement this in December 2025. Another bill, the STABLE Act of 2025, makes clear that payment stablecoins are not backed by the federal government. It focuses on consumer protection.
