The CLARITY Act will be voted on in 4 days to determine its fate. The regulatory "turning point" for the crypto market has arrived.

The U.S. Senate Banking Committee will vote on the CLARITY Act on January 15, which is seen as a critical regulatory moment for the cryptocurrency industry. The bill aims to combat market manipulation, clarify regulatory responsibilities, and promote market transparency. If passed, it will be submitted for a full Senate vote and ultimately signed into law by the President. The industry generally considers this an important opportunity to resolve long-standing regulatory confusion, but the issue of stablecoin yields remains a key variable in the bill’s passage.

What the Bill Aims to Address

Currently, there is a long-standing regulatory deadlock in the U.S. crypto space: unclear jurisdiction between the SEC and CFTC. The SEC claims almost all tokens are securities, while the CFTC believes assets like Bitcoin should fall under its jurisdiction. This ambiguity results in high compliance costs and stifles innovation.

The CLARITY Act seeks to break this deadlock with clear classification standards. According to relevant information, the bill will categorize digital assets into three types:

• Digital commodities (directly linked to blockchain functions) regulated by CFTC
• Investment contract assets (fundraising and issuance considered securities) regulated by SEC
• Compliant payment stablecoins led by banking regulators

Once established, this classification system can provide a clear compliance pathway for the entire industry.

Market Irregularities the Bill Aims to Combat

Breaking news explicitly states that the CLARITY Act’s specific measures include:

• Banning false trading, deceptive trading, and fake trading volume
• Making pump-and-dump schemes and front-running criminal offenses
• Requiring U.S. exchanges to provide reserve proof and undergo regular audits
• Empowering regulators with real-time monitoring tools

What is the background for these measures? On October 10 last year, the crypto market experienced a single-day liquidation exceeding $100 billion, with Bitcoin and altcoins plunging simultaneously. To date, the market remains unclear on how this crash started, which institutions were liquidated, and whether manipulation was involved. This information vacuum itself highlights transparency issues in the market.

Subsequently, market performance has appeared “bizarre”: almost all other asset classes hit new highs, but the crypto market—despite positive news—fell sharply, and negative news caused even steeper declines. The CLARITY Act aims to end this abnormal phenomenon.

Market Expectations Are Optimistic

Analysis in the news suggests that if the bill passes, market manipulation could decrease by 70% to 80%. While this figure is based on analysis rather than official data, it reflects market expectations of the bill’s potential impact.

More importantly, it could attract institutional capital. Relevant information indicates that current U.S. spot BTC ETFs continue to attract funds, with institutional holdings rising to over 20% of circulating BTC. Analysts believe that if the CLARITY Act passes, large institutional investments could flow into the crypto market more quickly by 2026. The reason is simple—regulatory clarity reduces compliance costs, encouraging institutions to allocate capital at scale.

But Disagreements Remain: Stablecoin Yield Rates

This is the key variable. According to related information, on the eve of the January 15 vote, the banking industry and the crypto sector are engaged in intense debates over stablecoin yields.

The banking side’s stance is: prohibit stablecoin yields to protect traditional bank deposits. Meanwhile, industry leaders like Coinbase founder Brian Armstrong, Ethereum creator Joseph Lubin, and others insist that consumers should have the right to earn yields. Galaxy founder Mike Novogratz even called the proposed ban “absolutely stupid.”

This is not just a matter of terms; it reflects a fundamental conflict between traditional finance and crypto finance. The stablecoin yield issue and DeFi regulations could jeopardize the bill’s final passage.

What Will Happen Next

According to the news, the subsequent process is clear:

1. January 15: Senate Banking Committee vote (committee level)
2. If approved: submit for full Senate vote
3. Return to the House for final approval
4. Finally, send to the President for signature and enactment

This process means that even if the committee approves, there are two more hurdles. However, given the lobbying efforts of industry giants, all parties are working hard to pass the bill.

Summary

The January 15 vote on the CLARITY Act is a pivotal moment for the crypto industry. It could resolve long-standing regulatory ambiguities and restore market order by cracking down on manipulation. However, issues like stablecoin yields remain potential variables.

On a broader scale, this reflects a trend: global regulation is tightening, but the direction is clear—regulation inclusion rather than outright bans. For investors, short-term volatility may arise from policy uncertainties, but in the long run, a clear regulatory framework is beneficial for market health. Attention should be paid to the voting outcome and the specific developments regarding stablecoin provisions.