Breaking: White House Crypto Czar Confirms Imminent CLARITY Act Senate Markup

In a defining moment for the future of American finance, White House AI and Crypto Czar David Sacks has officially confirmed that the Senate markup for the CLARITY Act is back on track. Speaking on CNBC yesterday, January 24, Sacks delivered a forceful message to markets: the legislative gridlock is ending, and a full-scale integration of digital assets into the U.S. banking system is imminent. This announcement comes just days after a brief procedural delay threatened to stall the bill, signaling a renewed push from the Trump administration to finalize the regulatory framework before the end of the first quarter of 2026.

White House Signals "One Digital Assets Industry"

During his televised appearance, Sacks wasted no time addressing the recent uncertainty surrounding the Digital Asset Market Clarity Act. He explicitly stated that the legislation is headed for a critical Senate committee markup this week, likely referring to the scheduled Senate Agriculture Committee session on January 27. His comments effectively quelled fears that the bill had been shelved following a contentious week of negotiations with industry stakeholders.

"After the market structure bill passes, banks are going to get fully into the crypto industry," Sacks declared, outlining a vision that fundamentally reshapes the relationship between Wall Street and blockchain technology. "We're not going to have a separate banking industry and crypto industry—it's going to be one digital assets industry."

This "merger" doctrine represents the core of the administration's financial strategy. By providing federal legal certainty, the White House aims to unlock trillions in institutional capital that has been sitting on the sidelines due to regulatory ambiguity. Sacks emphasized that the days of "regulation by enforcement" are over, promising a streamlined path for traditional financial institutions to offer crypto custody, trading, and stablecoin services directly to consumers.

Resolving the Regulatory Turf War

The CLARITY Act serves as the legislative vehicle to end the decade-long jurisdictional battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill creates clear statutory definitions for "digital commodity assets"—placing Bitcoin and similar decentralized tokens firmly under CFTC oversight—while delineating which assets remain securities under SEC jurisdiction.

Overcoming the Stablecoin Standoff

The path to this confirmation hasn't been without obstacles. Just last week, the Senate Banking Committee postponed a scheduled markup after Coinbase and other industry heavyweights withdrew support over a controversial provision related to stablecoin "rewards" or yield. The dispute centered on whether non-bank entities should be allowed to pay interest on stablecoin deposits—a practice traditional banks argued created an unfair competitive advantage.

However, Sacks' confident announcement suggests that a compromise has been reached behind closed doors. Sources close to the negotiations indicate that the revised markup will likely include a phased approach to stablecoin yields, allowing time for banks to build competitive products while preserving innovation for crypto-native firms. This breakthrough paves the way for the bill to move through the Senate Agriculture Committee on Tuesday, followed by a rescheduled Banking Committee session shortly thereafter.

A New Era for U.S. Banking Integration

The most transformative aspect of the CLARITY Act is its provision for institutional crypto custody. Once enacted, the law will grant chartered national banks the explicit authority to hold digital assets on behalf of clients, mirroring the custody services they provide for stocks and bonds. This change is widely seen as the "holy grail" for institutional adoption.

For the average American consumer, this means the ability to buy, sell, and store Bitcoin directly through a Chase or Wells Fargo mobile app, with the same interface and security protections they expect from traditional banking. Sacks highlighted this utility as a key driver for the administration, noting that "integration is the only way to ensure American dominance in the digital economy."

Furthermore, the legislation aligns with the recently passed GENIUS Act, which established a framework for payment stablecoins. Together, these bills create a cohesive ecosystem where blockchain technology powers the backend of consumer finance, moving crypto from a speculative asset class to a foundational layer of the global monetary system.

The Timeline for 2026

With the markup confirmed, the legislative clock is ticking. The bill has already passed the House with bipartisan support in July 2025. Now, the focus shifts to the Senate floor. Senate Banking Chair Tim Scott and Agriculture Chair John Boozman are coordinating to ensure the bill clears both committees swiftly. If the markup proceeds as Sacks indicated, a full Senate vote could occur as early as February.

The stakes are incredibly high. As other jurisdictions like the EU (with MiCA) and the UK solidify their crypto hubs, the U.S. is racing to catch up. David Sacks' intervention this weekend was a calculated move to reassure global markets that the United States is open for business. For investors and industry leaders alike, the message is clear: the regulatory winter is thawing, and the integration of banking and blockchain is no longer a question of if, but when.