David Sacks, the White House Crypto and AI Czar, recently convened with a diverse group of bipartisan Senators on January 6 to expedite the progression of the Digital Asset Market Clarity Act. This proposed legislation is anticipated to classify a majority of cryptocurrencies as commodities under the oversight of the Commodity Futures Trading Commission (CFTC), which would help establish definitive guidelines for exchanges and set forth regulations for digital assets and decentralized finance (DeFi).
This recent meeting, held in the office of Senate Banking Committee Chair Tim Scott, a Republican from South Carolina, attracted considerable attention with participation from over a dozen lawmakers across both major political parties. The discussions are part of ongoing efforts to reconcile differences in the proposed CLARITY Act, which seeks to provide regulatory clarity essential for fostering innovation within the U.S. cryptocurrency landscape.
Appointed by President Donald Trump in December 2024, Sacks has emphasized the necessity for regulatory clarity to position the United States as a leader in the cryptocurrency industry. Sources indicate that the dialogue during the meeting focused on addressing the remaining issues surrounding the CLARITY Act, which aims to delineate the regulatory responsibilities between the Securities and Exchange Commission (SEC) and the CFTC.
Key Lawmakers in Attendance
The session featured prominent Senators such as John Boozman from Arkansas and Cynthia Lummis from Wyoming. Their involvement underscores a collaborative effort between the Senate Banking and Agriculture Committees, which share jurisdiction over various aspects of digital asset regulation. This was not Sacks” first foray into discussions on Capitol Hill; he previously met with Republican Banking Committee members in October 2025 to reignite stalled conversations.
Progress continued in November 2025 when Sacks met with Senators Cory Booker, a Democrat from New Jersey, and Boozman again, indicating advancements on a draft from the Agriculture Committee. By December 2025, Sacks expressed optimism, noting that the country was “closer than ever” to enacting comprehensive legislation.
Overview of the CLARITY Act
The CLARITY Act aims to establish a federal framework for digital assets, primarily seeking to clarify regulatory authority between the SEC and the CFTC. Under the proposed guidelines, most cryptocurrencies would be classified as commodities, significantly reducing the SEC”s extensive regulatory reach, which has included high-profile enforcement actions against firms like Coinbase and Binance.
One of the critical aspects of the bill is its provisions for stablecoins, mandating that issuers maintain reserves and undergo regular audits to avoid failures similar to the collapse of TerraUSD in 2022. Additionally, it seeks to implement rules for DeFi protocols, ensuring compliance with anti-money laundering regulations while striving to protect technological innovation.
The act also aims to create a federal registration framework for spot market exchanges, allowing them to operate akin to traditional brokers without facing retroactive penalties. Furthermore, it addresses the role of banks by restricting them from holding specific crypto assets directly while allowing custody services.
As the legislative process unfolds, the current administration appears supportive of regulatory measures that could significantly impact the cryptocurrency market, with Sacks serving as a vital link between industry stakeholders and policymakers to accelerate this essential legislative initiative.
