- Jefferies links improving blockchain infrastructure and regulatory steps to more institutional tokenization, but says wider use needs clear U.S. market rules.
- The draft Digital Asset Market Clarity Act is the main template; Senate Banking released a version on Jan. 12, an Agriculture markup moved to Thursday due to a winter storm, and 2026 odds on Polymarket fell.
- The bill would curb stablecoin yield rewards, and clearer rules could speed trading, lending and custody; tokenization efforts involve NYSE, Nasdaq, DTCC and Swift, while Benchmark expects delays without legislation and capital shifting from exchanges, DeFi and altcoins.
Jefferies said improving blockchain infrastructure and gradual regulatory movement are setting conditions for more institutional tokenization, but argued that widespread adoption still hinges on clear U.S. market structure rules. In a Sunday report, the Wall Street investment bank highlighted the draft Digital Asset Market Clarity Act as a central reference point, describing it as the most detailed plan so far for how blockchain-based financial infrastructure could evolve, even as its path to becoming law remains uncertain. The discussion around clarity act crypto comes as lawmakers continue work on market-structure proposals in the Senate.
Jefferies links tokenization growth to U.S. market structure rules
Jefferies analysts led by Andrew Moss wrote that the direction of travel is becoming clearer for institutions considering tokenization, which is the conversion of real-world assets into blockchain-based tokens. The bank’s view was that foundational pieces are falling into place, including better infrastructure and incremental progress on regulation. Even so, it said broad adoption by traditional finance will depend on a market structure framework that lays out how digital assets are treated and which agencies oversee which activities.
In the same report, the analysts argued that effects could appear faster than some expect, even if the bill’s ultimate passage is not guaranteed. They framed the draft as a way to move away from what they called “regulation through enforcement,” replacing it with a technology-neutral approach. In Jefferies’ reading, the framework would attempt to align oversight across agencies and set expectations in several areas. Those include how assets are classified, which regulator has jurisdiction, what financial institutions can do, how decentralized finance is supervised, how tokenization develops, and what consumer protections apply. The bank tied the stakes to participation by regulated firms, suggesting that clearer rules would help determine whether more institutions commit capital and resources to blockchain-based infrastructure.
CLARITY Act crypto timeline shifts as Senate work continues
Legislative scheduling also shifted this week. The Senate Agriculture Committee moved its crypto market structure markup hearing from Tuesday to Thursday, citing the winter storm that affected much of the U.S. over the weekend. Jefferies pointed to multiple moving parts in the Senate, including the need to reconcile separate proposals before anything can reach the finish line.
The analysts noted that the Senate Banking Committee released its version of the CLARITY Act on Jan. 12, building on a House bill that passed last July. According to the report, much of the industry response has been positive. However, the bank also flagged political challenges, noting that momentum faced friction after a planned markup was delayed amid pushback from the industry. Beyond committee work, the path described in the report includes reconciling a separate Senate Agriculture Committee bill, then securing approval from the full Senate, and finally obtaining presidential sign-off.
Jefferies also referenced sentiment on the prediction market Polymarket. The report said the odds of passage in 2026 have fallen sharply. While it did not provide a percentage, the analysts used the shift to underline uncertainty around timing, even as the market continues to position for potential changes in oversight and compliance expectations.
What clarity act crypto could change for stablecoins and institutions
Stablecoins received particular attention in Jefferies’ analysis. The bank said the Senate draft would address what it called the“ stablecoin yield loophole” by prohibiting rewards that are paid only for holding stablecoins, while still permitting incentives tied to transactions. The distinction matters for how stablecoins might be used within regulated products and payment-like activity under a market structure regime.
Jefferies argued that the larger significance of the CLARITY framework would be its potential to open the door for broader activity by regulated financial institutions. The report said tokenization efforts are already picking up pace, and it pointed to initiatives involving NYSE, Nasdaq, DTCC and Swift. In the bank’s view, clearer market rules could speed up blockchain-based trading, lending, and custody. It also said such a shift could direct capital toward projects led by traditional finance, while at the same time increasing the advantages of compliant crypto-native firms by reinforcing regulatory barriers for those that meet the requirements.
The report also suggested that many tokenization initiatives will settle on specific blockchains. Jefferies said that could create potential upside for tokens linked to networks where activity generates revenue. The underlying point was that settlement choices and regulatory clarity could shape which platforms see higher usage, and which associated tokens may benefit from network-driven economics.
Conclusion
Jefferies’ Sunday report framed the Digital Asset Market Clarity Act as the most developed outline yet for U.S. crypto market structure, while emphasizing that passage is still not assured. With the Senate Agriculture Committee markup hearing pushed from Tuesday to Thursday due to a winter storm, and with the Senate Banking Committee having released its version on Jan. 12 after the House bill passed last July, the legislative route remains complex. The bank said clarity act crypto could influence stablecoin practices, agency oversight, and institutional participation in tokenization, while Benchmark argued that without legislation, the sector’s progression would be delayed rather than derailed, and capital would shift away from more regulation-sensitive areas such as exchanges, DeFi, and altcoins.
Disclaimer
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