CLARITY Act Delayed

TLDR

Table of Contents

The September 30 markup for the CLARITY Act has been delayed.
Senate Democrats are awaiting a bipartisan agreement on the bill.
The looming government shutdown complicates the legislative process.
A new markup target for the CLARITY Act could be set for October.

The crypto market structure bill, known as the CLARITY Act, has encountered a delay, with the planned markup on September 30 now unlikely to occur. The delay comes amid the looming threat of a U.S. government shutdown, which has created significant uncertainty for lawmakers working on the legislation.

Negotiations Stalled Ahead of Critical Deadline

Journalist Eleanor Terrett revealed in an X post that the September 30 markup target set by Senate Banking Republicans is now effectively off the table. Citing sources from Consensus and Capitol Hill, Terrett reported that Senate Democrats have yet to provide feedback on the bill.

They are reportedly seeking a collaborative agreement between both parties before moving forward with the negotiation of the bill’s details. This stall follows a recent call from Senate Democrats for “true collaboration” on the CLARITY Act, indicating the need for bipartisan cooperation.

Government Shutdown Looms Over Progress

The looming threat of a government shutdown has further complicated the timeline for the CLARITY Act. According to sources, the shutdown, which could take effect as early as October 1, makes it virtually impossible to hold the markup on the 30th, especially as the Senate is out for the week. With a critical shutdown deadline approaching, any last-ditch efforts to avert the shutdown will take precedence. The Senate is scheduled to return on September 29, making it difficult to finalize the markup discussions before the deadline.

Meanwhile, the potential delay is not expected to significantly hinder the progress of the CLARITY Act. Sources suggest that a new target date for the markup could be set for the week of October 20, although this is still subject to change. Notably, the Senate Agriculture Committee is also eyeing October for its own markup, which focuses on the CFTC’s regulatory oversight of the crypto industry. This shift in scheduling does not appear to affect the prospects of the CLARITY Act reaching the Senate floor by the end of the year.

House Version of the Bill Remains on the Table

Amid the uncertainty surrounding the Senate’s version of the CLARITY Act, the House’s version of the crypto market structure bill remains under consideration. It remains to be seen whether the Senate will incorporate aspects of the House bill into its own proposal.

As the political landscape evolves, the final version of the legislation may be shaped by ongoing negotiations between the two chambers.

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