US Senate Expected To Advance Crypto Clarity Act In January 2026

Senate Prepares to Push Forward the Clarity Act

2026 is shaping up to be a Crucial moment for the US crypto sector, as lawmakers and government are prepared to move forward with the very long-anticipated Crypto market Structure Bill, known as the Clarity Act. The Senate is expected to begin the hearings soon, this development could finally bring a stable and well-structured regulatory environment for digital assets.

Source: X(formerly Twitter)

White House Confirms Progress and End of SEC–CFTC Confusion

White House crypto adviser David Sacks recently noted that the country is “closer than ever” to passing comprehensive legislation. The bill has already cleared the House and is expected to help end years of jurisdiction battles between the SEC and CFTC, which have repeatedly clashed over who should control this digital asset oversight.

Focus Will Shift Toward Implementation

The focus will probably turn to implementation if the Clarity Act is approved early in the year. According to industry insiders, this will be important for exchanges, custodians, and digital currency companies since well-defined regulations may enable the US to continue leading the world in digital innovation.

SEC Innovation Exemption and Early-Year Policy Actions

January may also bring another major policy move, with the SEC reportedly considering an “Innovation Exemption.” This framework would allow digital assets startups to operate with fewer restrictive barriers, provided they maintain transparency and comply with safety requirements.

Throughout the year, a number of events are lined up. 

Jerome Powell’s term as Federal Reserve Chair expires on May 15 after his successor will play a significant role in determining interest rates, which may have an immediate impact on the Cryptocurrency market. Meanwhile, On July 1, California's Digital Financial Assets Law will go into effect and mandate state registration for businesses catering to California consumers, and is expected to establish a more comprehensive compliance standard across the country.

Tax Policies

Regulators are also anticipated to develop stablecoin oversight under the Genius Act by mid-July, defining AML, capital, and custody requirements. New cryptocurrency tax regulations and final CFTC recommendations for blockchain usage in financial markets are expected to be introduced by lawmakers in August.

Crypto Future on Mid-Term Elections

The political spotlight will peak on November 3 during the US midterm elections, which could significantly affect how fast or slow crypto policy progresses depending on the outcome.

Conclusion.

2026 will be a defining year for US virtual assets regulations as the Senate Crypto prepares to move forward on the Clarity Act, and multiple policies are scheduled to be announced throughout the year, the decisions made by the officials could redefine how virtual assets operate across the nation. At the same time, elections will happen, which will also affect the policy outcomes.