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Key Takeaways

• Revived White House Support for the CLARITY Act: Recent developments indicate that the Biden administration is lending its support to the Digital Asset Market Clarity Act of 2025 (H.R. 3633). This renewed focus is significant as lawmakers in Congress actively debate the structure of the cryptocurrency market.

• Cooperation Between SEC and CFTC: SEC Chair Paul Atkins recently announced that the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are collaborating through a coordinated effort known as "Project Crypto." This initiative aims to create a legislative framework for the regulation of digital assets, potentially leading to more comprehensive oversight.

• Senate Agriculture Committee’s Progress: The Senate Agriculture Committee has successfully advanced its own market-structure bill, which builds upon the principles outlined in the CLARITY Act passed by the House. This development highlights the growing momentum towards establishing a clearer regulatory framework for cryptocurrencies.

The Shift Towards Clearer Crypto Regulations

U.S. lawmakers and regulatory bodies are increasingly focused on creating a comprehensive and understandable regulatory framework for cryptocurrencies. Recent movements in Congress, especially the Senate’s approval of market-structure legislation, coupled with the SEC’s signal for enhanced collaboration with the CFTC, showcase a significant shift towards potential regulatory reforms in this sector. The administration’s backing of the Digital Asset Market Clarity Act of 2025 is a crucial step in attempting to break the longstanding impasse between the SEC and CFTC, which has hindered clarity in crypto oversight for many years.

On February 13, Treasury Secretary Scott Bessent expressed his belief that Congress should prioritize the passage of the CLARITY Act by the spring. This push for improved market structure for digital assets aligns with the increasing urgency among lawmakers to establish clear regulatory guidelines for an ever-evolving landscape of cryptocurrencies.

House Passed CLARITY Act, Senate Is Next

The CLARITY Act has already gained traction within the House, with a proposed framework that aims to regulate digital assets more effectively across the SEC and CFTC. The primary goal of this bill is to clarify oversight responsibilities in the U.S. spot markets. The next critical phase will be the Senate’s deliberation: a full examination through committee markups, negotiations across various committees, and the potential scheduling of a market-structure package for a floor vote.

Proposed Changes Under the CLARITY Act

The CLARITY Act is designed to minimize the industry’s reliance on enforcement-led interpretations of regulations. By establishing clearer categories and compliance expectations for market intermediaries, it aims to create a system that fosters predictability. For exchanges, brokers, issuers, and market makers, this clarity translates to less ambiguity regarding listing decisions and a stable understanding of regulatory authority.

Coordination between SEC and CFTC

During a House hearing on February 11, 2026, SEC Chair Paul S. Atkins expressed his support for Congress’s enactment of the CLARITY Act. He introduced a collaborative effort between the SEC and CFTC, referred to as "Project Crypto," which aims to develop a clearer classification approach for digital tokens. This coordination is vital, as the implementation phase is often where legislative efforts falter. A unified approach signals an expectation of durable changes emerging from Capitol Hill.

Senate Agriculture Advances a Parallel Framework

On January 29, 2026, the Senate Agriculture Committee announced that it had advanced the Digital Commodity Intermediaries Act. This bill is described as legislation that builds on the principles established in the House-passed CLARITY Act while incorporating provisions that were negotiated with Senate Democrats. This indicates that the Senate is not starting from scratch but is rather enhancing an existing framework.

The likely scenario is a negotiated package that uses the CLARITY Act as a foundation, supplemented by additional measures to secure votes and address consumer protection concerns.

Future Developments to Monitor

Looking ahead, key areas to observe include procedural catalysts such as Senate committee markups, coordination between the Banking and Agriculture Committees, and whether leadership will allocate time for the market structure discussions on the Senate floor. Currently, the trajectory appears more promising than it has in prior years, with White House support, active Senate drafting, and explicit coordination between the SEC and CFTC indicating a movement toward establishing a clearer U.S. regulatory framework for cryptocurrencies, although a fixed timeline remains elusive.

The Role of AI legalese decoder

In light of the evolving legal landscape around cryptocurrencies, navigating the complexities of new legislation can be daunting for individuals and businesses alike. This is where the AI legalese decoder can make a significant impact. This innovative tool is designed to simplify complex legal texts, making them more accessible to those without a legal background. By breaking down intricate legal language into clearer, understandable terms, the AI legalese decoder can help stakeholders understand their obligations and rights under the CLARITY Act and other related legislation.

Whether you’re a crypto exchange, intermediary, or an individual investor, using the AI legalese decoder can empower you to stay informed and compliant in a rapidly changing regulatory environment. This helps ensure that you can focus on strategic decisions without being overwhelmed by the intricacies of legal jargon.

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