The CLARITY Act is expected to pass in the US at the beginning of 2026, White House AI and Crypto Czar, David Sacks, revealed. The Digital Asset Market Clarity (CLARITY) Act established clear and functional requirements for crypto market participants, while prioritizing consumer protection and fostering innovation.
Clearer Crypto Legislation to Pass in the US Next Month
In the evening of December 18, Sacks announced via a post on X that, following a call with Chairmen Tim Scott and John Boozman, a markup for the CLARITY Act is set to come in January.
Due to strong support from Rep. French Hill and Congressman Glenn Thompson in the House, clear crypto market structure legislation called for by U.S. President Donald Trump will most likely pass at the beginning of 2026.
What is the CLARITY Act?
The CLARITY Act will bring the following:
- Clearer requirements for crypto market participants
- Consumer protection
- Industry innovation
- Strong safeguards and regulatory certainty
- Reinforcement of US leadership in the global financial system
- Restoring confidence and keeping innovative businesses in the US
According to the official noted of the CLARITY Act, crypto and blockchain have the potential to set the foundation of the next-generation Internet innovation, but previous enforced regulation and ambiguity have made innovation impossible, leading to a relocation of innovative US companies outside the country and leaving consumers unprotected.
These challenges are addressed by the Act, following years of Congress work to support entrepreneurs, developers, and consumers.
Protecting Consumers
The CLARITY Act is set to protect consumers by strengthening transparency and accountability:
- Developers will have to provide accurate, relevant disclosures, including data related to their crypto project's operation, ownership, and structure.
- Crypto brokers and dealers will have to provide full disclosure to customers, separate customer funds from their own, and address conflicts of interest via registration, disclosure, and operational requirements.
Strengthening the Market
The CLARITY Act will boost the markets by fostering the development of crypto projects:
- Crypto developers will get a clear pathway to raise funds under the SEC's jurisdiction.
- Market participants will get a green light to trade digital commodities via intermediaries and exchanges overseen by the CFTC.
The Act will also establish a clear difference between the SEC and CFTC, and create comprehensive registration regimes to allow crypto firms to serve their customers lawfully.
Clearer crypto regulation is expected to be fully implemented in the US, amidst rising global adoption, and while other global regions are also working towards bringing more regulations for the industry, so that innovation can thrive in a safe ecosystem.
