After the US House of Representatives approved the CLARITY Act, a cryptocurrency regulation bill, in July 2025, all eyes turned to the Senate drafting its own version. If both chambers agree on the final text, the bill will be submitted to President Donald Trump for approval.
Despite the government shutdown, progress is reportedly being made. A spokesperson for the Senate Agriculture Committee told Unchained that Committee Chairman John Boozman is working on a bipartisan proposal:
“This is a deliberate and good-faith negotiation process. We are committed to securing bipartisan support within the committee.”
Although a clear timetable has not yet been shared, this statement is considered a promising development for the cryptocurrency sector, which has been experiencing uncertainty during the shutdown process.
Multiple crypto market structure proposals are in the Senate. Democratic senators Andy Kim, Ruben Gallego, Mark Warner, Kirsten Gillibrand, and Cory Booker released a framework document in September that aims to close regulatory gaps and clarify the legal status of crypto assets.
Meanwhile, the Republican-backed bill, the Responsible Financial Innovation Act (RFIA), differs significantly from the CLARITY Act. The RFIA envisions a “hybrid” oversight structure between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and defines a category of “ancillary assets” (digital assets tied to investment contracts but not considered traditional securities).
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The new draft to be prepared by the Agriculture Committee will be the next important step in the process.
While legislation can be sent to multiple committees in the House of Representatives, this is not possible in the Senate. Therefore, the CLARITY Act was referred only to the Senate Banking Committee, but the Agriculture Committee also had to be involved because some sections of the bill fall under the jurisdiction of the CFTC.
Coinbase US Vice President of Policy Kara Calvert highlighted the complexity of the process:
“The Banking Committee is working hard to secure bipartisan support, and so is the Agriculture Committee. The question is how the timing of these two processes will align.”
There's no clear timeline for the Agriculture Committee's draft. Furthermore, the CFTC staff's absence due to the government shutdown is slowing the process. The commission currently operates with only an interim chair; President Trump's withdrawal of Brian Quintenz's nomination for the permanent chair has also added to the uncertainty.
SEC Chairman Paul Atkins and CFTC Interim Chair Caroline Pham recently issued a joint statement suggesting the SEC take on a greater role in spot cryptocurrency markets. However, this approach could change if a new CFTC chair is appointed.
If the government shutdown lasts until next week, the Senate will have only 30 legislative days left for 2025. Calvert emphasized the time pressure:
“Floor time is at a premium in the Senate. Both committees need to get their bills ready for a vote as quickly as possible.”
Ji Kim, CEO of the Crypto Council for Innovation, believes that the process will accelerate after the lockdown:
“This is a critical moment to establish enduring US leadership in digital assets. We believe congressional leaders and the administration will seize this opportunity.”
However, experts warn that the project could lose momentum if it's pushed to 2026. Stacey Rolland, CEO of Zero One Strategies, summarized the importance of the process:
“It could pass in January, but it needs to be evaluated once the momentum has been established. The longer the lockdown continues, the greater the risk of the law losing momentum.”
*This is not investment advice.