US Government Shutdown May Delay Digital Asset Market Structure Bill
Background
The potential for a US government shutdown has raised concerns about delays in legislative action, particularly for the digital asset market structure bill currently under Senate consideration. Unless House and Senate Republicans reach an agreement with Democrats on a bipartisan funding bill before midnight on Tuesday, the government is set to halt operations. Such a shutdown would pause all ongoing legislative votes and regulatory actions, impacting progress on digital asset regulation. Reporting via CoinTelegraph.
Senate Digital Asset Market Structure Bill Timeline
The digital asset market structure bill, also referred to as the Responsible Financial Innovation Act, aims to clarify the regulatory roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) regarding digital assets. Originally, the Senate Banking Committee planned to consider the bill by the end of September. However, deliberations were postponed to October, and a prolonged government shutdown could cause additional delays.
Senator Cynthia Lummis of Wyoming, a key proponent of the bill, had targeted a late September committee hearing. The legislation builds on the CLARITY Act, passed by the House in July, and seeks to define the agencies’ oversight capabilities for digital currencies and related assets. For further background, see this internal resource.
Impact of Government Shutdown on Legislation
If Congress fails to approve new funding, the shutdown will halt any further progress on bills awaiting consideration, including the digital asset market structure bill. Government agency actions, such as those by the SEC and CFTC, would also be put on hold. During past shutdowns, like the record 35-day closure under President Donald Trump in 2018-2019, lawmakers redirected their focus to essential funding discussions, sidelining unrelated legislative efforts. According to CoinTelegraph, priorities will likely remain on resolving the shutdown rather than advancing topics such as digital asset market structure.
Prospects for Negotiation
Key congressional leaders are scheduled to meet with President Trump to seek a resolution. Despite past statements suggesting little hope for productive negotiation, meetings are planned between Trump, House Minority Leader Hakeem Jeffries, Senate Minority Leader Chuck Schumer, House Speaker Mike Johnson, and Senate Majority Leader John Thune. Thune has proposed a “seven-week funding resolution” through November, but Democrats continue to push for the restoration of healthcare funding cut in the July budget bill. Without consensus, the government will shut down at midnight on Tuesday, causing further delays to critical legislative initiatives like the digital asset market structure bill.
What’s Next?
The fate of the US government shutdown and its impact on the digital asset market structure bill will hinge on bipartisan negotiations over the coming days. Lawmakers on both sides are under pressure to find common ground and prevent disruptions to ongoing regulatory and legislative operations related to cryptocurrency and digital assets.
