White House Crypto Czar Signals CLARITY Act Senate Markup for January as Industry Pushes for Regulatory Framework

White House AI and crypto czar David Sacks announced that the long-awaited CLARITY Act will proceed to Senate markup in January, marking a critical juncture for the cryptocurrency industry’s quest for comprehensive federal regulation. The announcement comes as digital asset markets trade near key psychological levels, with $2.6B Flows Into Bitcoin and Ethereum Treasuries”>ethereum-treasuries/” title=”Institutional Appetite for Digital Assets Surges as $2.6B Flows Into Bitcoin and Ethereum Treasuries”>Bitcoin holding around $90,589 and the broader sector awaiting clarity on regulatory frameworks that could shape the industry for years to come.

The CLARITY Act, which passed the House of Representatives in July 2024 with a narrow 219-198 vote, represents one of the most significant pieces of cryptocurrency legislation to advance through Congress. The bill aims to establish clear regulatory boundaries for digital assets and prevent securities regulators from asserting jurisdiction beyond their proper scope, addressing a core complaint from industry participants who have faced regulatory uncertainty for years.

Sacks’ timeline announcement represents a notable acceleration from recent expectations. Just last week, sources close to the Senate Banking Committee suggested that the cryptocurrency market structure bill might be postponed until 2026, with Senator Mark Warner indicating it would be “very difficult” to review the legislation before year-end. However, the Trump administration’s pro-crypto stance appears to have injected new urgency into the legislative process.

The Senate Banking Committee, led by Chairman Tim Scott, has been negotiating the bill’s provisions alongside House counterparts. Industry observers note that bipartisan support will be crucial for passage, particularly given the narrow margins that characterized the House vote. The committee has indicated it is working toward advancing the legislation, though specific timeline commitments had been scarce until Sacks’ announcement.

Market participants have been closely monitoring the legislative landscape as institutional adoption of digital assets continues to expand. The regulatory clarity promised by the CLARITY Act could unlock significant institutional capital that has remained on the sidelines due to compliance concerns. Banking groups have shown particular interest in the bill’s provisions, which could clarify their ability to custody and transact in digital assets.

The announcement comes against the backdrop of broader cryptocurrency policy victories under the Trump administration. The Securities and Exchange Commission has notably reduced enforcement actions against crypto firms, marking a stark departure from the previous administration’s approach. The agency has moved to freeze or drop several high-profile cases, including actions against major exchanges and trading platforms.

Complementing the CLARITY Act, Congress has also advanced the GENIUS Act, which establishes federal charter requirements for stablecoin issuers. Together, these pieces of legislation could provide the comprehensive regulatory framework that industry advocates have sought for years. The GENIUS Act requires 1:1 backing with cash and high-quality liquid assets, strict prohibitions on rehypothecation, and monthly attestation disclosures by independent auditors.

The crypto industry invested heavily in the 2024 election cycle, contributing more than $245 million to promote pro-crypto candidates including Trump, according to Federal Election Commission data. These investments appear to be paying dividends as the administration has embraced digital assets as a policy priority. Trump himself has become a vocal supporter of the industry, reversing his earlier skepticism of cryptocurrencies.

Legal experts suggest that 2025 will serve as a “test sample year” for cryptocurrency regulatory frameworks, with 2026 representing the true test of whether new policies can support sustainable market development. The passage of comprehensive legislation could catalyze a wave of cryptocurrency initial public offerings and institutional product launches that have been delayed pending regulatory clarity.

As the Senate prepares for markup proceedings, industry stakeholders are preparing for intensive lobbying efforts to ensure favorable provisions survive the amendment process. The success or failure of the CLARITY Act could determine whether the United States maintains its position as a leading jurisdiction for digital asset innovation or cedes ground to more crypto-friendly international competitors who have already established clear regulatory frameworks.