As the government shutdown approaches its anticipated conclusion, lawmakers are shifting their focus to the Senate’s bipartisan efforts on digital assets market structure legislation. Following the passage of the GENIUS Act earlier this year, expectations were high that Congress would swiftly advance market structure legislation. However, that timeline has faced delays, sparking cautious optimism for a bipartisan agreement as negotiations resume.
The Senate Banking, Housing, and Urban Affairs Committee had initially planned to hold a markup session in late September, then in mid-October. These sessions were postponed due to the ongoing government shutdown. A markup has yet to be scheduled, amid unresolved frustrations from Democratic members regarding their roles in the legislative process, as highlighted by Politico. Despite this, discussions have remained active, even during the shutdown, and efforts have been made to break the stalemate that led to the postponements.
In a significant development, the Senate Agriculture, Nutrition, and Forestry Committee, tasked with drafting legislation related to the Commodity Futures Trading Commission, has released a discussion draft. This draft, while still in negotiations, is crucial for moving the process forward. Senators John Boozman (R-Ark.) and Cory Booker (D-N.J.) lead the committee and can now solicit feedback on the draft, indicating positive momentum as this stage is essential before any floor vote in the Senate.
While it is anticipated that the Senate Banking Committee may complete its work before the Agriculture Committee, the collaborative effort could foster opportunities for compromise, especially with a more unified understanding of the legislation’s scope. However, with the length of the shutdown and the current state of discussions, the prospects of passing market structure legislation this calendar year seem increasingly unlikely. Yet, aspirations remain for a resolution by 2026, aided by a sustained interest from members of both parties in the Senate.
The urgency of this process cannot be understated, as bipartisan deal-making tends to yield better results in the early stages of an election year, typically before the legislators take their August recess. Should the proposed bill not pass before the end of the year, it may still be feasible to complete it later in 2026, although the political landscape post-midterm elections could significantly influence negotiations and party dynamics.
To achieve a timely conclusion, a Senate floor vote would likely need to occur in the first quarter of 2026. This timeline would afford the House and Senate sufficient opportunity to reconcile any differences between their respective drafts. Historically, House members have maintained distance from Senate negotiations, hinting that they might not simply endorse the Senate’s version, especially after the House’s earlier draft process in July. Resolving any discrepancies could consume much of Congress’s working time until late July.
