Published & Updated: February 6, 2026
U.S. Senate Agriculture Committee Chairman John Boozman (R-AR) confirmed on February 5, 2026 that formal negotiations on the CLARITY Act (Cryptocurrency: Legal Accountability and Responsibility in Technology Act) have resumed following the committee’s January 29 markup session. The announcement comes after weeks of stalled progress in the Senate Banking Committee and reflects renewed bipartisan urgency to pass the first comprehensive federal framework for digital asset market structure.
The CLARITY Act — which passed the House in July 2025 with strong bipartisan support — aims to end years of regulatory uncertainty by clearly dividing oversight between the SEC (securities-like tokens) and CFTC (commodity-like digital assets), establishing registration standards for exchanges/custodians, setting consumer protections, and addressing DeFi and stablecoin treatment. Boozman described the current phase as “productive momentum” in a CNBC interview, expressing hope for full Senate consideration before midterms. This article details the bill’s legislative journey, core provisions, remaining hurdles, contrasting global regimes (especially EU MiCA), and potential market implications if passed in 2026.
Legislative Progress Timeline – House Passage to Senate Talks
| Date | Milestone | Status / Key Details |
|---|---|---|
| July 2025 | House Passage (H.R. 4763) | Bipartisan approval (228–182); strong Republican support + 71 Democrats |
| Oct–Dec 2025 | Senate Banking Committee hearings | Over 100 amendments proposed; stablecoin yield ban debate intensifies |
| Jan 15, 2026 | Senate Banking markup delayed | Party-line deadlock; Coinbase CEO Armstrong withdraws support over DeFi restrictions |
| Jan 29, 2026 | Senate Agriculture Committee markup | Advanced on party-line vote; Boozman shifts focus to Ag jurisdiction (CFTC) |
| Feb 5, 2026 | Boozman announces resumed negotiations | Cross-committee talks restart; White House reportedly applying pressure |
| Target: Mid-2026 | Full Senate floor vote / conference committee | Optimistic path; midterm elections pose delay risk to 2027 |
Core Provisions of the CLARITY Act
The bill creates a dual-regulator framework designed to reduce enforcement uncertainty while maintaining investor protections:
- Jurisdictional split: Most decentralized tokens classified as CFTC-regulated commodities; tokenized securities remain under SEC
- Exchange & custodian registration: Federal standards for trading platforms, custody providers, and market makers
- DeFi carve-outs: Limited exemptions for fully decentralized protocols (no centralized intermediary)
- Stablecoin coordination: Works alongside GENIUS Act; emphasizes 1:1 reserves, monthly audits, AML/CFT compliance
- Anti-manipulation & surveillance: Enhanced CFTC authority to prevent wash trading, spoofing, and pump-and-dump schemes
- Consumer protections: Disclosure requirements, suitability standards, and cooling-off periods for retail investors
Controversial elements include proposed restrictions on stablecoin yield products (opposed by Coinbase and DeFi advocates) and uncertainty around privacy-preserving technologies.
Bipartisan Hurdles & Negotiation Dynamics
While the House version enjoyed broad support, Senate progress has been slower:
- Democratic concerns: Insufficient consumer protections, potential for systemic risk, perceived favoritism toward banks over DeFi
- Republican priorities: Reducing SEC enforcement overreach, promoting innovation, and aligning with Trump administration’s pro-crypto stance
- Industry pressure points: Coinbase & Circle oppose stablecoin yield bans; DeFi groups demand stronger exemptions; traditional finance seeks custody clarity
Boozman has emphasized compromise on consumer standards, stability safeguards, and innovation balance. White House engagement (reportedly via NEC) is reportedly pushing for resolution before midterms.
U.S. vs Global Regimes – Europe’s MiCA Advantage
The EU’s MiCA framework (fully effective 2024–2025) provides a stark contrast:
- Clear licensing paths for crypto-asset service providers
- Stablecoin reserve & redemption rules already implemented
- Bank custody & trading of compliant assets (including XRP & RLUSD) permitted
Giancarlo and others argue this clarity has given European institutions a first-mover advantage, while U.S. banks remain sidelined due to SEC/CFTC jurisdictional overlap and enforcement risk.
Market Implications if CLARITY Act Passes in 2026
- Institutional inflows — Reduced uncertainty could unlock trillions in sidelined capital (banks, asset managers, pension funds)
- ETF expansion — Clearer commodity status for BTC/ETH may accelerate spot ETF approvals and staking products
- DeFi growth — Carve-outs could spur compliant protocols; restrictions risk stifling innovation
- Global competitiveness — U.S. passage would counter MiCA’s lead and reduce offshoring pressure
Delay or failure risks prolonging the current regulatory chill, potentially pushing more activity offshore or into decentralized channels.
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FAQs – CLARITY Act Progress 2026
What is the current status of the CLARITY Act?
Passed House in July 2025. Senate Agriculture Committee advanced draft Jan 29, 2026; Banking markup stalled. Boozman confirmed resumed negotiations Feb 5.
Why has the bill faced delays in the Senate?
Over 100 amendments proposed, party-line disagreements on stablecoin yields, DeFi exemptions, and consumer protections. Banking Committee stalled Jan 15; Ag Committee advanced alternative draft.
How does CLARITY differ from EU MiCA?
MiCA provides comprehensive licensing & stablecoin rules; CLARITY focuses on SEC/CFTC jurisdiction split, exchange standards, and DeFi carve-outs. EU already enables bank custody of compliant assets.
Is passage likely before midterms?
Optimistic timeline targets summer 2026 Senate vote & conference committee. Midterm elections pose delay risk to 2027 if no compromise reached.
Conclusion & 2026 Outlook
Senate Agriculture Chair John Boozman’s February 2026 announcement of resumed CLARITY Act negotiations signals renewed momentum for the first comprehensive U.S. digital asset market structure bill. After House passage in July 2025 and Senate stalls, bipartisan talks aim to resolve disputes over stablecoin yields, DeFi treatment, and consumer protections.
While Europe’s MiCA framework has already enabled institutional adoption, U.S. clarity could unlock trillions in sidelined capital and counter offshoring pressure. Tapbit offers efficient ways to position around regulatory progress: 0% maker fees on BTC/USDT, ETH/USDT & stablecoin pairs, deep liquidity, up to 125x leverage on perpetuals, staking/yield options, and instant fiat ramps. Key catalysts to monitor: cross-committee negotiation updates, Senate Banking markup revival, stablecoin amendment compromises, ETF flow direction, and February macro data — CLARITY Act passage remains one of the highest-impact potential tailwinds for U.S. crypto markets in 2026.
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Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Legislative outcomes and regulatory decisions are uncertain and subject to change. This article is for informational purposes only and does not constitute investment, legal or financial advice. Always conduct your own research (DYOR) and consult qualified professionals before making decisions.
