Novogratz Predicts CLARITY Act Passage, Affecting Ethereum Price

Galaxy Digital CEO Mike Novogratz has expressed optimism regarding the eventual passage of the U.S. crypto market structure bill, also known as the CLARITY Act, despite its recent postponement by the Senate Banking Committee on January 14, 2026. The bill, which aims to establish clear regulatory frameworks for digital assets, faced a delay after Coinbase publicly withdrew its support for the current draft. Novogratz anticipates a compromise will be reached, allowing the legislation to move forward in the coming weeks.

The U.S. Senate Banking Committee postponed a scheduled markup of the Digital Asset Market CLARITY Act, or Market Structure Bill, which was initially set for January 15, 2026. This decision followed Coinbase CEO Brian Armstrong’s announcement on January 14, 2026, that the exchange could not support the bill as written, stating, We’d rather have no bill than a bad bill. The draft legislation, comprising nearly 300 pages, was released by the committee on January 12, 2026.The CLARITY Act seeks to define digital asset classifications and delineate the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). According to Arnold & Porter, the bill proposes to divide crypto assets into three categories: digital commodities, investment contract assets, and permitted payment stablecoins. This framework is intended to provide legal certainty and foster innovation within the U.S. digital asset market.

While Coinbase pulled its support, other prominent crypto industry entities, including a16z, Circle, Kraken, the Digital Chamber, Ripple, and Coin Center, have voiced support for the legislation. On January 16, 2026, the total crypto market capitalization was approximately $3.22 trillion, with Bitcoin trading near $95,436, Solana around $142, and Dogecoin around $0.13, indicating a cautious market sentiment amidst regulatory uncertainty.

Coinbase‘s withdrawal of support stemmed from several key concerns with the bill’s current provisions. These issues included a de facto ban on tokenized stocks, broad restrictions on Decentralized Finance (DeFi) protocols, a perceived weakening of the CFTC‘s authority in favor of the SEC, and the potential elimination of rewards on stablecoin holdings for consumer platforms. Conversely, Galaxy Digital CEO Mike Novogratz believes that senators from both sides of the aisle are working in good faith to address the issues and that an imperfect bill is still essential for the industry’s sustained growth.

The exact timeline for when the Senate Banking Committee will reschedule the markup of the CLARITY Act remains unspecified. Additionally, the specific amendments or compromises that would satisfy all opposing parties, particularly concerning stablecoin yield mechanisms and the scope of DeFi regulation, have not been publicly detailed.

Despite the current delay, Mike Novogratz, who claims to have spoken with over 10 senators, expects a compromise to emerge, leading to the bill’s passage in the coming weeks. The legislation aims to provide the regulatory clarity that many in the crypto industry have long sought, which could impact the trajectory of digital asset adoption and innovation in the United States. However, the debate over the bill’s provisions continues, with former SEC Chief Accountant Lynn Turner warning on January 13, 2026, that the current draft is severely deficient and risks enabling another FTX-type fraud.

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