The Digital Asset Market Clarity Act of 2025 advanced to Senate review after the House passed it on July 17, 2025, marking a major step in U.S. crypto market structure legislation. Introduced by French Hill, the bill proposes a clear division of oversight between federal regulators.
Lawmakers now face a narrow window to act as banking groups and crypto firms clash over stablecoin rewards. The Senate Banking Committee scheduled an executive session markup for January 15 at 10 a.m. ET, following formal notice requirements. The bill’s progress depends on whether senators can reconcile industry opposition before momentum fades.
One question looms over the process: Can Congress resolve the stablecoin rewards dispute in time to pass the bill?
The CLARITY Act assigns the Commodity Futures Trading Commission authority over digital commodity spot markets. These include assets such as Bitcoin and Ethereum; in parallel, the Securities and Exchange Commission retains oversight of assets classified as investment contracts. This split aims to clarify which rules apply across exchanges and brokers.
The legislation introduces broader exemptions for mature blockchains. Supporters expect these changes to improve exchange compliance and deepen liquidity. Institutional investors may gain confidence as regulatory roles become more defined.
Stablecoins would fall under commodity treatment when traded on registered platforms, aligning them with the bill’s market structure approach. Despite debate around definitions of digital commodities and securities, analysts say these issues will not delay progress.
Attention instead centers on external pressure from banking groups. That pressure targets how platforms handle rewards tied to stablecoin balances rather than token classification itself.
Bernstein analysts warned that the chance to pass a U.S. crypto market structure bill is shrinking. In a client note, a team led by Gautam Chhugani said the bill’s fate hinges on resolving bank concerns over deposit flight. Banking groups argue that stablecoin rewards could pull funds from traditional accounts.
The dispute traces back to the GENIUS Act, signed into law last year, which barred stablecoin issuers from paying yield directly. Still, it allowed crypto platforms and affiliates to share rewards with users, often ranging from 2% to 4% annually. Banks now seek to restrict those incentives.
Analysts noted that banks view stablecoin rewards as a systemic risk if the market expands from about $275 billion into the trillions. They warn such growth could challenge deposit stability. Meanwhile, crypto industry groups argue that reopening the issue would undermine the GENIUS Act, compromising and distorting competition.
The Senate Banking Committee issued a formal notice confirming an executive session to consider the CLARITY Act. The markup will take place on January 15 at 10 a.m. ET. The notice outlined a clear amendment schedule to guide the process.
Punchbowl reporter Brendan Pedersen shared staff details on X. According to the notice, managers’ amendments will circulate on January 12. All member amendments must arrive by January 13. These steps satisfy the committee rules in requiring advance notice.
This timeline follows a bipartisan meeting held earlier in the week. After that meeting, Tim Scott confirmed plans to proceed with the markup. Market participants now watch closely as the Senate weighs amendments amid mounting industry pressure.
Industry voices continue to frame the bill’s stakes. Matt Hougan, chief investment officer at Bitwise, compared the bill’s outcome to a signal for market direction. His comments reflected the heightened attention surrounding the Senate’s next steps.
Read More: CLARITY Act Wins US House Approval to Define Crypto Rules
The CLARITY Act 2025 has advanced from the House to Senate review, proposing clear CFTC and SEC roles for digital assets. Its progress now hinges on resolving disputes over stablecoin rewards. The January 15 markup will shape the future of U.S. crypto market structure and regulatory certainty.