In January 2026, the U.S. Securities and Exchange Commission (SEC) finds itself at a historic crossroads. Its Crypto Task Force, created in January 2025 under the impetus of Commissioner Hester Peirce, received two strategic submissions on January 20 that reveal the tensions at the heart of American crypto regulation.
An Unprecedented Regulatory Momentum
These submissions come at a critical moment: the CLARITY Act, a major bill on digital asset market structure, is struggling to progress in the Senate. The crypto industry is actively attempting to shape a regulatory framework that would protect both consumers and the right to technological innovation.
Two Submissions That Redefine the Debate
1. The Defense of Self-Custody
The first submission, signed by « DK Willard » on behalf of Louisiana users, relies on state law HB 488, which expressly establishes residents’ right to self-custody of their digital assets. This position warns of a systemic risk: certain exemptions in federal proposals could allow developers and platforms to escape their fundamental investor protection obligations.
This submission raises a fundamental question: how to reconcile consumer protection with the preservation of individual liberties in a decentralized ecosystem?
2. The Status of DeFi Traders in Question
The second submission, carried by the Blockchain Association Trading Firm Working Group, targets a crucial technical question: should firms that trade tokenized stocks and DeFi assets solely for their own account, without soliciting clients or managing third-party assets, be automatically classified as « dealers »?
This distinction is critical: it separates traditional financial intermediaries from DeFi actors operating non-custodially. The argument emphasizes that existing rules were designed for traditional markets and require adaptation to smart contracts.
The CLARITY Act in Critical Position
Adopted by the House of Representatives in July 2025 with a bipartisan majority, the CLARITY Act represents the most ambitious attempt to create a comprehensive federal framework for digital assets. However, its future in the Senate is darkening:
- Markup postponement: The Senate Banking Committee has postponed indefinitely its session originally scheduled for mid-January
- Deadline: Without adoption before November 2026, the project risks being postponed to 2027
- Sectoral divisions: Coinbase, the main defender of the text, has withdrawn its support for the current version
Major Points of Friction
| Issue | Industry Position | Regulator Position |
|---|---|---|
| Token classification | Clear SEC vs CFTC criteria | Fear of loopholes |
| Stablecoins | Freedom to generate yield | Consumer protection priority |
| DeFi definition | Developer protection | Circumvention risk |
| Self-custody | Fundamental right | Money laundering risk |
The SEC’s Pragmatic Approach
In its February 2025 statement, the Crypto Task Force highlighted a pragmatic strategy: temporary and retroactive exemptions for certain token offerings, combined with « cross-border sandboxes » to facilitate experimentation. This approach aims to reconcile innovation and risk control.
The Legal Battle Over « Dealers »
In November 2025, Citadel had suggested that DeFi protocol developers, smart contract authors, and even self-custody wallet providers should be treated as intermediaries subject to registration.
The Blockchain Association vigorously rejected this interpretation, calling it « without foundation in the Exchange Act » and a threat to American competitiveness. This divergence illustrates the difficulty of applying a traditional regulatory framework to a decentralized ecosystem.
The Political Urgency
White House advisors, including Patrick Witt, have pressed the industry to accept compromises to pass the CLARITY Act while Republicans control Congress. Brian Armstrong, CEO of Coinbase, acknowledged at the World Economic Forum in Davos that the industry is working to find « a win-win scenario ».
This political pressure is accompanied by an economic reality: crypto companies need regulatory clarity to plan their investments, while regulators must prevent systemic risks without stifling innovation.
Conclusion: A Precarious Balance
The January 20, 2026 submissions reveal a mature crypto industry that no longer merely reacts to regulation but actively seeks to shape it. The battle around self-custody and the classification of DeFi dealers will determine whether the United States remains competitive in building tomorrow’s financial infrastructure.
The CLARITY Act’s delay in the Senate testifies to the complexity of translating principles into operational texts. The SEC Crypto Task Force finds itself at the heart of a necessary compromise: offering practical compliance pathways for the industry while preserving the protections investors need.
For decision-makers, the message is clear: the window of opportunity for coherent regulation is narrowing. If Congress fails to adopt legislation before the November 2026 midterm elections, regulatory uncertainty will continue to hinder innovation and push talent toward more welcoming jurisdictions.
