The crypto market structure bill, known as the Clarity Act, has seen little public movement in about a month. While predicting the bill’s fate is tricky, it’s not hard to see that time is running out for passage before the upcoming election.
Why the Bill Matters
Much of what’s happened around market structure issues (like Securities and Exchange Commission staff statements) isn’t permanent guidance. The SEC could eventually write rules through a formal notice-and-comment period, but that would take time. Market structure legislation aims to lock crypto industry regulations into law, making it harder for a future administration to undo them. Without the Clarity Act, we might see the same debates again in a few years. To be clear, this isn’t pushing for the bill; it’s just describing a likely outcome.
The Timeline Squeeze
Memorial Day, which falls on May 25th (about a month away), has been seen since last December as a key deadline. If the bill hasn’t advanced by then, it probably won’t pass before the election. Come summer, lawmakers will leave Washington to campaign, leaving little room for crypto legislation.
Before leaving, Congress must fund the Department of Homeland Security in the House and maybe confirm a new Fed chair in the Senate. CoinDesk’s Jesse Hamilton recently outlined the steps needed for Clarity to reach President Donald Trump’s desk.
The crypto industry really wants this bill. Over 100 firms signed an open letter last week urging the Senate Banking Committee to hold a markup hearing (the first formal step toward passage). But it’s still unclear how close the committee is to acting. Debate over stablecoin yield continues, and other issues remain unresolved, at least publicly.
Even if those issues get sorted, the House would need to vote again on the bill. Congressman French Hill, who chairs the House Financial Services Committee, told CoinDesk that many outstanding points around stablecoin sales and decentralized finance were already handled in the House version, so the Senate should find common ground. “I think the Senate’s relayed quite a bit on the House work,” he said.
So, the clock is ticking. We’ll likely have more clarity (no pun intended) at Consensus Miami next month. But for now, it’s a waiting game.
