Crypto Market Structure Bill Advances in Senate Despite Shutdown

Background: Legislative Work Continues Amid Shutdown

As the U.S. government approaches day three of a shutdown, progress on the crypto market structure bill remains active in the Senate. Despite industry concerns about delayed ETF approvals and regulatory slowdowns, Senator Cynthia Lummis (R-Wyo), Chair of the Subcommittee on Digital Assets, has reaffirmed her commitment to advancing the legislation. A representative from Lummis’ office stated, “Senator Lummis continues to work on market structure legislation; we’re full steam ahead,” as reported by CryptoNews.

Contents

Impacts of the Government Shutdown

A federal government shutdown directly affects agencies like the SEC and CFTC, but the legislative branch functions differently. Crypto policy experts note that with fewer distractions, Congressional staff can focus more closely on complex legislative issues. Summer Mersinger, CEO of the Blockchain Association and former CFTC commissioner, said, “A lot of congressional staff still end up working, but there’s a lot less going on…so in some sense, it frees up congressional staff to maybe work on things that they have to clarify throughout the day.” This unusual environment could benefit progress on the crypto market structure bill—especially for Senate committees responsible for its negotiation and drafting.

Adam Minehardt, Head of Public Policy for Chainlink Labs and former Congressional staffer, added that while staff may work remotely or with altered schedules, “All Hill staff, for the most part, will be deemed essential, but where they work and how accessible they are is a different thing.” Despite these logistical hurdles, attention remains focused on defining digital assets and creating clear distinctions between securities and commodities.

Key Issues and Political Dynamics

Much of the current work on the crypto market structure bill hinges on settling core definitions in digital asset policy. According to Mersinger, “How do you define digital assets, and what is a security and what is a commodity—that is still very much a live issue.” The Senate is considering a hybrid approach, which diverges from the Clarity Act adopted in the House of Representatives. Lawmakers must devise a new legal test to effectively classify digital tokens.

A bipartisan push is evident. Recent legislative progress, such as the Genius Act, shows Democrats and Republicans can work together on digital asset frameworks. Ji Kim, CEO of the Crypto Council for Innovation, observed, “Government shutdowns hurt American families, workers, and businesses, and risk stalling bipartisan progress in Congress. We’ve seen meaningful steps forward on digital assets, and now is the time to keep that momentum moving for market structure for consumers and U.S. leadership.”

With 2025 seen as a critical window, Mersinger emphasized, “If we wait for another crisis like FTX, that’s when bad laws get written. Now’s the time to get the best product out of Congress.” Missing this legislative moment, she cautioned, could result in less optimal regulations.

What’s Next for the Crypto Market Structure Bill?

The Senate Banking and Agriculture Committees must coordinate to finalize the crypto market structure bill. The Agriculture Committee, which oversees the CFTC, is expected to release its draft framework soon. Once both committees reach consensus, a markup could proceed—even during a shutdown—to keep the legislative process on track.

Industry leaders and policymakers agree that enacting clear crypto regulations is vital for U.S. innovation and consumer protection. With staff focused on policy details during the shutdown, Congress may be positioned to deliver a comprehensive digital asset framework by the end of the year.

For more news on digital assets and legislative developments, visit the cryptocurrency category on Vizi.com.