Senate Banking Committee Advances CLARITY Act; Stablecoin Reward Rules Set for Markup
On January 13, 2026, Senate Banking Committee Chairman Tim Scott released an updated discussion draft of the Digital Asset Market Clarity Act (CLARITY Act). The legislation is a critical step toward establishing a comprehensive federal regulatory framework for cryptocurrencies in the United States.
Legislative Timeline & Progress
Senate Banking Committee Markup: A formal markup session is scheduled for Thursday, January 15, 2026.
Senate Agriculture Committee Delay: While the Banking Committee is moving forward, the Senate Agriculture Committee has postponed its markup of the bill until the last week of January 2026 to build broader bipartisan support.
Prior House Approval: The House of Representatives passed its version of the bill in July 2025. If the Senate passes it without further amendments, it will go directly to President Donald Trump for signature.
Key Provisions in the 2026 Draft
Stablecoin Rewards: The new draft permits "activity-based" rewards (linked to payments or network activity) but explicitly prohibits digital asset service providers from paying interest or yield solely for holding payment stablecoins.
Regulatory Oversight: The bill clarifies the jurisdictional boundaries between the SEC and CFTC, granting the CFTC primary authority over digital commodities.
DeFi & Self-Custody: The draft includes specific protections for decentralized finance (DeFi) protocols, open-source developers, and self-custody users.
CBDC Restrictions: It restricts the Federal Reserve from issuing a retail central bank digital currency (CBDC).
Consumer Protections: Stricter transparency and fund segregation requirements are introduced for centralized crypto exchanges to safeguard retail investors.
#CryptoRegulation #CLARITYAct #Stablecoins #TimScott #USsenate