Crunch Time for Crypto 

Markup of a major US crypto market structure bill – often discussed as FIT21-style legislation and closely associated with proposals such as the Digital Asset Market Clarity Act (the CLARITY Act) – is now approaching a key stage, with hearings and votes scheduled for 15 January 2026 (US time).

This process involves both the Senate Banking Committee (covering SEC-related aspects) and the Senate Agriculture Committee (covering CFTC-related oversight), as the bill’s provisions span the long-running jurisdiction question of whether digital assets should be regulated primarily as securities or commodities.

Both committees are expected to hold separate markup sessions next week to review, amend, and advance the bipartisan legislation before it potentially moves to a full Senate vote. This dual-committee approach is standard given the overlap in regulatory responsibilities, although the Banking Committee is generally seen as leading the effort amid ongoing negotiations on issues such as DeFi provisions and ethics/conflict-of-interest rules.

Why it matters

This development is significant for the crypto market and industry. The legislation aims to establish a clearer federal framework, including definitions for digital commodities, enhanced CFTC authority over spot markets, and safeguards designed to reduce conflicts of interest – addressing uncertainty that has weighed on innovation and institutional participation for years.

If the bill progresses, regulatory clarity could improve market confidence by reducing perceived enforcement risk and creating clearer pathways for compliant activity. Over time, that could support larger capital participation across Bitcoin and altcoins, while also helping enable broader adoption in areas such as DeFi, stablecoins, and tokenised assets.

However, delays or failure – with some analysts warning meaningful implementation could slip to 2027 or later – would likely prolong uncertainty, even if momentum appears constructive in early 2026. A potential late-January US government shutdown is another risk that could disrupt the legislative calendar.

Overall, the coming weeks are widely viewed as a pivotal moment for US crypto policy, with industry groups actively lobbying to shape the outcome.

Lobbying intensifies ahead of 15 January

In late December 2025 and early January 2026, several key figures from the crypto industry and adjacent sectors have been reported as visiting Capitol Hill to advocate for the CLARITY Act and broader market structure reform, ahead of the scheduled Senate committee markups.

• Major crypto firms: In mid-December (around 17–20 December 2025), leaders and lobbyists from Coinbase, Kraken, Chainlink, Ripple, and Andreessen Horowitz (a16z) were reported to have met with senators, including Tim Scott, as talks continued on bill details and the push for clearer rules.
• David Sacks meeting: David Sacks (a White House adviser often described as the administration’s AI and crypto lead, and a long-time tech/crypto investor via Craft Ventures) was reported to have met with bipartisan senators on 6 January 2026 in Senate Banking Committee Chair Tim Scott’s office to help narrow disagreements. Reported attendees included Republicans such as Tim Scott (SC), John Boozman (AR), and Cynthia Lummis (WY), building on earlier engagement with Democrats including Cory Booker (NJ).
• Industry groups: More than 40 crypto leaders affiliated with the Chamber of Digital Commerce were also reported to have been on Capitol Hill on 8 January 2026 as part of a broader lobbying push.

Taken together, these visits point to a concerted attempt – involving both Republicans and Democrats – to bridge gaps on issues such as DeFi scope, token classification, and how responsibilities are divided between the SEC and CFTC.

Banks and the stablecoin yield debate

Traditional finance is paying close attention as well. On 11 December 2025, the CEOs of Bank of America, Citi and Wells Fargo were reported to have met with senators to discuss outstanding issues including stablecoin yields and affiliate interest payments, which intersect with the broader market structure framework.

Concerns have been raised within DeFi communities that parts of the banking sector may be lobbying to limit yield-like features in crypto to protect traditional interest-bearing accounts. The argument is that if capital begins moving from low-yield bank deposits into higher-yield crypto and DeFi alternatives, it could pressure bank funding costs and profitability. Banks and policymakers, meanwhile, typically frame tighter settings as necessary for risk management, consumer protection, and financial stability.

Bottom line

The market is watching closely. The outcome of the 15 January 2026 markups will be an important signal on whether the US is moving towards a clearer crypto rulebook – and whether that clarity can support broader participation and potentially substantial capital inflows into the sector over time.

General information only. Not financial advice.