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Why the Clarity Act Is So Important for Crypto

The U.S. Senate Banking Committee postponed a scheduled review of the CLARITY Act on January 15, 2026, as negotiations continue. The bill, which aims to provide a regulatory framework for digital assets, faced opposition from some industry players, including Coinbase.

Recent Developments

Markup Postponed: Senate Banking Committee Chairman Tim Scott announced the postponement of the bill's "markup" (committee debate and potential amendment process) to allow for further negotiations with industry leaders and bipartisan colleagues.

Industry Split: The delay came after Coinbase CEO Brian Armstrong publicly withdrew support, arguing the current draft favors traditional finance firms and imposes tough restrictions on certain crypto activities. Other industry figures, like Ripple CEO Brad Garlinghouse, still view the bill as a "massive step forward".

Agriculture Committee Review: The Senate Agriculture Committee, also involved in crypto legislation, rescheduled its hearing on the matter to January 27, 2026, and plans to release its legislative text by January 21, 2026.

The Clarity Act is important for crypto because it helps answer one big question:

Who controls crypto, and what rules apply to it?

Right now, crypto exists in a legal grey area, especially in the United States. Different government agencies treat crypto differently, which creates confusion and fear for investors and companies.

The Problem Without the Clarity Act

No clear rules on whether a crypto asset is a security or a commodity

Companies don’t know if the SEC or CFTC is in charge

Fear of lawsuits and sudden regulations

Big crypto companies move outside the US

Investors worry about bans or enforcement actions

In short: uncertainty slows innovation and scares money away.

What the Clarity Act Does

The Clarity Act:

Clearly defines what types of crypto are securities and what are commodities

Decides when the SEC regulates a token and when the CFTC does

Gives crypto startups a clear legal path to grow

Protects investors with transparent rules

This is why it’s called the Clarity Act — it removes confusion.

Why This Matters for Crypto Prices

When rules are clear:

Big investors feel safer entering crypto

Banks and institutions can legally participate

US-based crypto companies stay in the market

Long-term adoption increases

More confidence = more capital flowing into crypto.

Why Crypto Supporters Care So Much

Crypto was built to be global, but it still needs:

Legal certainty

Fair regulation

Innovation-friendly rules

The Clarity Act doesn’t ban crypto — it legitimizes it.