Bipartisan talks on a long-awaited U.S. crypto market regulation package, the CLARITY Act, have resumed in the Senate, even as Washington remains paralyzed by a government shutdown now in its 31st day, one of the longest in U.S. history.
Lawmakers from both parties are racing to finalize the market structure bill that could reshape oversight of digital assets before election politics stall progress.
The negotiations, led by key Senate committees, have accelerated in recent weeks despite the broader gridlock.
Can the CLARITY Act pass by Thanksgiving?
According to the report, Senate Agriculture Committee Chair John Boozman (R-Ark.) said he and Sen. Cory Booker (D-N.J.) are working “daily” to complete their section of the legislation, which would establish a regulatory framework for digital assets treated as commodities.
Boozman said he expects a committee vote “before Thanksgiving,” adding, “We’re going to get it done this year.”
Booker echoed that sentiment, saying the goal was to “get the policy right” rather than rush the timeline.
Their work represents one part of a broader bipartisan effort spanning multiple committees, including Banking and Finance, to define how digital assets fit within U.S. regulations and the tax code.
Talks within the Senate Banking Committee have also gained momentum. Senators Cynthia Lummis (R-Wyo.), Ruben Gallego (D-Ariz.), and Angela Alsobrooks (D-Md.) said discussions had resumed after weeks of delay.
Notably, Committee Chair Tim Scott (R-S.C.) said he was “encouraged” by the progress and looks forward to advancing “meaningful legislation.”
Still, some members caution that the bill is not yet ready. Sen. John Kennedy (R-La.) said the legislation requires a public hearing and that many lawmakers still need to understand the issue.
The push for progress comes amid warnings that time is running out. Sen. Thom Tillis (R-N.C.) said Congress must act by early 2026 or risk losing momentum as election politics take over.
“I’m not optimistic about us moving much further on anything around digital assets, stablecoins, or crypto in this Congress,” he said on Monday.
Longest Shutdown in History Looms — What’s Next for America?
The shutdown, now stretching into its fifth week, has added further strain. The Senate adjourned Thursday without progress on a continuing resolution, guaranteeing the shutdown will last at least 34 days, tying the longest lapse in U.S. history.
As of October 20, 25% of Polymarket bettors predict that the shutdown will last until at least November 16 and may drag on for almost another month to become the longest in American history.
Funding for food assistance under the Supplemental Nutrition Assistance Program (SNAP) is set to expire Saturday, threatening benefits for 42 million Americans.
The closure, triggered by disputes over healthcare subsidies, has left 1.4 million federal workers without pay, including air traffic controllers and employees at key agencies.
Despite the stalemate, Senate Democrats and Republicans are expected to meet separately with industry executives next week to keep crypto talks alive.
U.S. Lawmakers Renew Crypto Talks, but Prediction Markets Cut Odds of 2025 Passage to 25%
On October 20, Sen. Kirsten Gillibrand (D-N.Y.) hosted a closed-door roundtable with major industry figures, including Galaxy’s Mike Novogratz, Coinbase CEO Brian Armstrong, and Chainlink’s Sergey Nazarov.
Armstrong told CNBC that roughly 90% of the bill’s issues had already been resolved and that Thanksgiving had been floated as a possible target for completion.
The House-passed Digital Asset Market Clarity Act, approved in July by a 294–137 vote, remains stalled due to the shutdown.
The measure defines which digital assets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and which are overseen by the Securities and Exchange Commission (SEC).
Together with the GENIUS Act, signed by President Donald Trump earlier this year, it forms the foundation of the emerging U.S. crypto regulatory framework.
White House AI and Crypto Czar David Sacks said the administration remains optimistic that bipartisan support could still deliver progress by the end of 2025.
Source: PolymarketBut prediction markets paint a different picture, with data from Polymarket showing just a 25% chance the CLARITY Act becomes law this year, down from 87% in mid-July
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