A new draft of the Digital Asset Market Clarity Act (known as the CLARITY Act), released by Senate Banking Committee Chairman Tim Scott (R-S.C.), proposes a significant shift in U.S. cryptocurrency regulation.
The legislation would create a “non-ancillary” asset classification, exempting qualifying tokens from securities regulations and aligning their treatment with established cryptocurrencies like Bitcoin and Ethereum.
Under the draft, tokens serving as the principal asset in exchange-traded products (ETPs) listed on national securities exchanges as of January 1, 2026, would automatically qualify for this non-ancillary designation. This ETF-based criterion offers a clear pathway to regulatory legitimacy, bypassing prolonged debates over decentralization or token characteristics.
Based on current ETP listings, this provision would apply to several major tokens, including Solana, XRP, Litecoin, Hedera, Dogecoin, and Chainlink. If enacted, these assets would receive commodity-like treatment similar to Bitcoin and Ethereum, potentially opening doors for broader institutional participation.
Industry experts highlight that the primary impact would be on institutional compliance rather than immediate price movements. Jordan Jefferson, Founder of DogeOS, noted that statutory clarity would expand the range of institutions legally able to engage with these assets.
Similarly, Jamie Elkaleh from Bitget Wallet described the approach as regulating cryptocurrencies based on their inclusion in established financial products, extending frameworks already benefiting Bitcoin and Ethereum to additional tokens.
Joshua Chu from the Hong Kong Web3 Association pointed to political uncertainty as the key factor, despite the compliance advantages.
With mid-term elections looming, electoral outcomes could heavily influence the bill’s progress.The draft also includes protections for software developers in decentralized systems but notably excludes controversial provisions on stablecoin yields.
The Senate Banking Committee has scheduled a markup hearing for Thursday, January 15, 2026, where members will debate the bill, propose amendments, and potentially advance it.
This session represents a critical test for legislation that could establish tiered regulatory treatment tied to ETP inclusion—making exchange-traded product listings a strategic priority for cryptocurrency projects seeking regulatory clarity.
While the bill enjoys bipartisan negotiations, its final form and passage remain subject to ongoing discussions and political dynamics. The full 278-page draft text is available on the Senate Banking Committee website.
Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.