TLDR
- Senate CLARITY Act markup postponed until October due to looming government shutdown.
- The bill still expected to reach the Senate floor by the end of the year.
- Democrats are seeking bipartisan collaboration on the CLARITY Act before moving forward.
- Crypto market structure bill is crucial in addressing market concerns and regulation.
The much-anticipated markup of the CLARITY Act, a key piece of cryptocurrency market structure legislation, has been delayed due to a looming U.S. government shutdown. Originally scheduled for September 30, the markup session now seems unlikely to happen this month, with sources indicating that October is a more realistic target. The setback is tied to the broader uncertainty surrounding the potential shutdown, which could affect several legislative timelines.
Eleanor Terrett, a journalist who tracks Capitol Hill developments, confirmed the delay in an X post, citing sources on both Capitol Hill and in the crypto industry. According to Terrett, Senate Banking Republicans had initially targeted the end of September for the markup session. However, the ongoing budget issues have made it nearly impossible to move forward with this timeline, particularly with the Senate out for a week before returning on September 29.
Democrats Seek True Collaboration Before Markup
While the markup session is delayed, the process for negotiating the CLARITY Act is still progressing. Senate Democrats have yet to provide feedback on the bill, as they are waiting for an agreement between both Republican and Democratic parties.
In a press release issued last week, Senate Democrats called for “true collaboration” before moving forward with any substantive negotiations on the bill.
The push for collaboration comes amid mounting concerns about ensuring a fair and comprehensive framework for the crypto market that benefits all parties involved. According to sources, discussions will continue in October, with both sides hoping to finalize the terms for the bill. While the markup is delayed, the overarching goal is still to get the legislation to the Senate floor by the end of 2025.
Potential Shutdown Impact on Legislative Schedules
The delay in the CLARITY Act markup highlights the broader challenges lawmakers face amid the looming government shutdown.
With the end of the fiscal year approaching, the U.S. government is facing a potential shutdown if Congress cannot reach an agreement on funding. As a result, several legislative priorities, including the CLARITY Act, have been put on hold.
The government shutdown threat looms large, particularly as the Senate prepares to return to session at the end of September. According to Terrett, efforts to avoid a shutdown will likely dominate the agenda during the final days of the month. The shift in focus is expected to push the CLARITY Act markup into October, with a new target date set for the week of October 20.
Broader Implications for Crypto Legislation
The delay in the markup of the CLARITY Act has broader implications for the cryptocurrency industry, particularly for market participants who are waiting for clear regulatory guidance. The crypto industry has long been calling for more clarity on how digital assets should be regulated, and the CLARITY Act represents a key step in addressing these concerns.
However, the delay raises questions about the pace of regulatory progress, especially as lawmakers face pressure to resolve ongoing budget issues.
In the meantime, the U.S. House of Representatives’ version of the crypto market structure bill remains on the table. It is still unclear whether the Senate will incorporate the House’s version into its own proposal, or if the two chambers will continue working on separate bills.
