Ongoing Government Shutdown and Senate Discussions
Amid the ongoing government shutdown—the longest in US history—Senate discussions concerning a pivotal bill on the digital asset market structure are reportedly continuing. According to a report from Politico published on Tuesday, Republican Senator John Boozman, who chairs the Senate Agriculture Committee, is set to confer with David Sacks, the White House’s appointed crypto and AI advisor, as well as Democratic Senator Cory Booker. This dialogue is part of efforts to finalize a draft of the legislation, which is seen as crucial for the future regulation of the cryptocurrency sector.
Challenges Facing the Legislation
The bill, which cleared the House of Representatives in July with expectations for a smooth passage through the Senate, has faced hurdles primarily due to demands from Democrats for specific inclusions relating to decentralized finance. Complicating matters further, the Senate’s discussions have been affected by the ongoing government shutdown that reached day 36 on Wednesday. It remains uncertain if the Senate will prioritize the crypto legislation or focus on negotiating a funding bill aimed at reopening the government and restoring full operations to financial regulators like the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Political Dynamics and Timing
In the wake of recent Democratic victories in Tuesday’s elections, some Senate members, including Chris Murphy, have proposed that lawmakers should leverage their influence to persuade Republicans into supporting healthcare subsidy extensions and rolling back cuts introduced in a July funding bill.
Regarding the timing of the market structure bill’s passage, North Carolina Senator Thom Tillis has indicated that Congress has until early January or February to act, before the looming 2026 midterm elections make the process more complex. Senator Cynthia Lummis, a key supporter of the bill, initially aimed for the legislation to be enacted by year-end, but the continuing shutdown has made this target less viable.
“Right now, we’re working at the staff level every single day to get the votes necessary in committee to get it out of committee,” Lummis stated in a Tuesday Bloomberg interview, emphasizing that bipartisan talks are ongoing, and substantial progress is being made.
Impact of the Shutdown on Discussions
Meanwhile, at Ripple’s Swell conference in New York, Patrick Witt, who leads the Council of Advisors for Digital Assets under President Donald Trump, acknowledged that while the government shutdown has created “complications” in discussions, the absence of regular meetings has actually allowed for more engagement among lawmakers. However, the lack of staff from affected agencies has led to concerns around the availability of technical expertise necessary for detailed evaluation of the bill.
