Capitol Gains: Crypto hearings expected to continue mid-shutdown
As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup
Volodymyr TVERDOKHLIB/Shutterstock modified by Blockworks
The Senate on Wednesday once again rejected both plans to fund the federal government and end the shutdown, which now enters its ninth day.
Senators have so far voted six separate times on partisan measures to extend funding.
Republicans, with 53 Senate seats, need eight Democrats to cross the aisle.
Without a budget, the crypto policy agenda remains in limbo, but Washington insiders insist that momentum isn’t completely lost.
While the House remains in a shutdown-induced recess, the Senate appears to be in session for both budgetary and crypto matters.
Two people familiar with the matter told Blockworks that the Senate Banking Committee remains committed to moving crypto market structure policy along, even if that means holding a markup hearing mid-shutdown. Regardless of whether a budget is passed, Committee leadership hopes to markup the Responsible Financial Innovation Act before the end of the month, they added.
To recap, the House passed the CLARITY Act in July. The Senate Banking and Agriculture Committees have since been working on their own versions of the bill, which will eventually have to merge with each other and CLARITY.
Senate Banking Committee Republicans released a revamped version of their bill last month. Democrats responded with a list of principles they’d like to see in the legislation.
The Agriculture Committee has yet to release its draft, which will focus mainly on the Commodity and Futures Trading Commission’s role in crypto market regulation.
Pre-shutdown, a person familiar with the matter said the draft bill was “close,” but now, with federal agencies operating with limited staff, it’s going to take more time.
Agency staffers working with Congressional committees on policy — like cryptocurrency market structure — are largely furloughed during the shutdown, lowering the odds that we’ll see a draft soon, according to a person familiar.
With federal agencies operating with limited personnel, new spot crypto ETFs are not expected to be approved until the shutdown ends. In its shutdown operations plan, the SEC said it will not review or approve registration statements or issue notices of effectiveness.
Given the SEC’s new generic listing standards and the extensive work issuers and agency staff put in ahead of the shutdown, two issuers who spoke with Blockworks said they are confident that new products will get the green light quickly after federal operations resume.
The issuers added that they have not received communication from the SEC since the shutdown began last week.
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