At the SmartCon conference in New York, several leading crypto lobbying groups said the CLARITY Act \u2014 a market structure bill meant to define how digital assets are regulated \u2014 is running into setbacks tied to Washington gridlock and competing political priorities. The ongoing government shutdown is making matters worse, slowing down legislative staff and stalling negotiations.<\/p>\n\n\n\n
Ji Hun Kim, CEO of the Crypto Council for Innovation, said there is still determination in Congress to advance the bill, but the timeline remains uncertain.<\/p>\n\n\n\n
\u201cI think we’ll make a mad dash with the market structure bill, but I’m not sure we’ll get it to the President’s desk this year,\u201d Kim said.<\/p>\n\n\n\n
Summer Mersinger of the Blockchain Association and Cody Carbone from The Digital Chamber shared similar expectations. Both argued that while there is bipartisan support for the bill, the reality is that it likely won\u2019t pass in 2025.<\/p>\n\n\n\n
Earlier in the year, many in the industry believed the CLARITY Act would move quickly, especially after the GENIUS Act \u2014 a stablecoin regulation bill \u2014 successfully became law in July. A White House-backed \u201ccrypto week\u201d before the summer recess helped boost momentum. But since then, progress has slowed, especially as congressional staff deal with shutdown disruptions and shifting legislative priorities.<\/p>\n\n\n\n
Lobbyists at the event also highlighted a broader sense of urgency: the outcome of future elections could shift the regulatory environment again. President Trump cannot run for a third term, and a new administration could bring leadership less favorable to crypto.<\/p>\n\n\n\n
Carbone warned that regulations could swing back to a more aggressive enforcement stance, similar to what companies faced under former President Joe Biden\u2019s SEC. \u201cThings could change back to the anti-crypto regulatory agenda,\u201d he said. \u201cIt’s essential to get the legislation in.\u201d<\/p>\n\n\n\n
The bill is also facing resistance from traditional banking groups. The American Bankers Association<\/a> and Bank Policy Institute are lobbying to block crypto firms from offering rewards on stablecoin deposits \u2014 benefits that could compete directly with bank savings accounts.<\/p>\n\n\n\n Meanwhile, the Senate is drafting its own version of crypto market structure rules, meaning both chambers will eventually need to reconcile differences before a final bill can move forward.<\/p>\n\n\n\n For now, lobbyists say they remain cautiously optimistic \u2014 but acknowledge that patience will be required.<\/p>\n\n\n\n