Key Takeaways
- US Senators are reportedly advancing a bill for crypto market structure rules, despite the ongoing government shutdown.
- Bipartisan negotiations are underway, aiming for legislation by the end of the year.
- Key committees, the Senate Agriculture and Banking Committees, are involved in the discussions.
- The effort builds upon the CLARITY Act passed by the House and aims to establish the Responsible Financial Innovation Act.
- Industry leaders, like Coinbase CEO Brian Armstrong, have been engaging with lawmakers on the progress.
Senate Pushes Forward on Crypto Regulation Amid Shutdown
Despite a government shutdown that has impacted many federal agencies, a significant push is reportedly underway within the US Senate to advance legislation governing the cryptocurrency market structure. According to a Bloomberg report, several Republican senators, including those in leadership roles on crucial committees, are committed to passing a digital asset market structure bill by the end of the year, aligning with their previously stated timelines.
The ongoing shutdown has led to furloughs for thousands of government employees. However, members of Congress continue to be paid and are authorized to conduct legislative business. This situation highlights the ongoing dedication of lawmakers to addressing the evolving digital asset landscape.
Bipartisan Talks and Legislative Framework
Senator John Boozman, who chairs the Senate Agriculture Committee, has indicated that negotiations with Democrats are progressing toward the release of a bipartisan market structure bill in the near future. The reported goal is to see this legislation enacted before 2026. Concurrently, members of the Senate Banking Committee, another key body that must approve such a bill, have reportedly resumed bipartisan discussions, with the possibility of a deal being announced within weeks.
The current legislative initiative stems from the CLARITY Act, which was passed by the House of Representatives in July as part of Republican priorities. Senate leaders have stated their intention to build upon this act to craft their version of crypto market structure rules, proposed under the title the Responsible Financial Innovation Act.
Senator Cynthia Lummis of Wyoming, a prominent advocate for the bill, had previously expressed optimism in August that the legislation would be considered by the Agriculture Committee by the end of September and the Banking Committee by the end of October. Her initial projection also included the expectation that the bill would be signed into law by President Trump by 2026. While one committee deadline has now passed, and the other is unlikely to be met during the current shutdown, the momentum for the legislation appears to persist.
Industry Engagement Fuels Regulatory Progress
The renewed focus on crypto market structure comes in the wake of Coinbase CEO Brian Armstrong’s recent visit to Washington, D.C. Armstrong met with lawmakers and expressed that the Senate was actively working on the bill, with approximately 90% of the agreed-upon issues surrounding cryptocurrency in the legislation.
Expert Summary
Despite the ongoing US government shutdown, senators are actively working on advancing a bipartisan bill for cryptocurrency market structure. Negotiations between legislative bodies appear to be progressing, with industry leaders engaging with lawmakers to support progress. The aim is to establish clear rules for the digital asset market by the end of the year.