The CLARITY Act is a House-passed bill proposing a crypto market structure framework to define regulator roles and streamline digital asset oversight; lawmakers say passage remains a priority despite the government shutdown, with sponsors aiming to finish negotiations and secure Senate approval by year-end.
CLARITY Act aims to define regulatory roles for digital assets
Senate and House leaders still target passage before 2026 despite procedural delays
Government shutdown has slowed reviews at agencies like the SEC and may pause ETF application processing
Crypto market structure bill update: CLARITY Act remains a priority despite shutdown — learn timeline and impact, read on.
Senate Republicans initially said they planned to pass digital asset market structure before 2026, but consideration of the bill was already delayed before the shutdown.
Wisconsin Representative Bryan Steil, an original cosponsor of the House’s crypto market structure bill, the CLARITY Act, said Republicans’ timeline to pass the legislation remains the plan despite the ongoing government shutdown. Steil told CNBC he is optimistic the bill can still clear Congress.
Senate leaders had pledged to have a chamber version signed into law by 2026, but the bill faced delays before the shutdown began. As the shutdown entered its eighth day, industry stakeholders expressed concern about potential slowdowns at federal agencies and in the legislative calendar.
“I think we still have an opportunity to get CLARITY across the line by the end of the year,” Steil said, adding, “I’m hopeful that as we come on the other side of the shutdown that we have an opportunity to hit the ground running and have the Senate move forward quickly.”
Steil noted: “If the Senate chooses to use the House text as their base text, I think what we have is an opportunity to get this bill still done, signed into law by the end of the year.”
What is the CLARITY Act and the crypto market structure bill?
The CLARITY Act (crypto market structure bill) is House-passed legislation that seeks to clarify regulatory responsibilities between federal agencies for digital assets, establish custody and exchange standards, and create a durable framework for token classification. The bill targets faster legal certainty for market participants and aims to reduce jurisdictional disputes.
How will the government shutdown affect consideration of the CLARITY Act?
The shutdown has limited federal operations and placed many agencies on reduced staffing levels, which can delay administrative reviews and interagency coordination. The SEC is operating with an “extremely limited number of staff” under modified conditions, which is expected to put ETF application reviews on hold until full operations resume.
Why do lawmakers still expect to pass the bill this year?
Republican sponsors emphasize political momentum after the House vote in July and ongoing Senate interest from members such as Senator Cynthia Lummis on the Senate Banking Committee. Lawmakers cite cross-committee negotiations and a shared urgency to provide market certainty as reasons they believe a deal remains achievable before year-end.
Frequently Asked Questions
How long could a shutdown delay crypto-related agency actions?
Short-term delays range from days to weeks depending on the shutdown length. Critical systems such as SEC electronic filing remain operational, but detailed application reviews and rulemakings are likely paused until normal staffing returns.
What parts of the CLARITY Act are most affected by a delay?
Provisions requiring interagency coordination—such as defining agency jurisdiction, custody standards, and exchange rules—depend on committee work and agency input, which are slowed by reduced staff and postponed hearings.
Key Takeaways
- Policy intent: CLARITY Act aims to create a durable regulatory framework for digital assets.
- Shutdown impact: Temporary pauses at agencies could delay ETF reviews and other administrative actions.
- Next steps: If the Senate adopts the House text as a base, sponsors expect accelerated negotiations to pursue year-end passage.
Conclusion
The CLARITY Act remains the focal crypto market structure bill in Congress, and sponsors continue to press for timely action despite a government shutdown. With House passage already complete and continued Senate interest, lawmakers and industry participants will be watching post-shutdown scheduling closely to determine whether a final agreement and signature can be achieved by year-end.