The Senate on Wednesday once again rejected both plans to fund the federal government and end the shutdown, which is now entering its ninth day.
So far, senators have voted six times on partisan measures to extend funding.
Republicans, with 53 seats in the Senate, need eight Democrats to reach across the aisle.
Without a budget, the crypto policy agenda remains in limbo, but Washington insiders insist the momentum is not completely lost.
While the House remains in a shutdown-induced recess, the Senate appears to be in session for budget and crypto matters.
Two people familiar with the matter told Blockworks that the Senate Banking Committee remains committed to advancing crypto market structure policy, even if it means holding a mid-stop markup hearing. Regardless of whether a budget is passed, committee leaders hope to improve the Responsible Financial Innovation Act before the end of the month, they added.
To recap, the House passed the CLARITY Act in July. The Senate Banking and Agriculture committees have since worked on their own versions of the bill, which will eventually have to merge with each other and with CLARITY.
Republicans on the Senate Banking Committee released a revamped version of their bill last month. Democrats responded with a list of principles they would like to see in the legislation.
The Agriculture Committee has yet to release its draft, which will primarily focus on the role of the Commodity and Futures Trading Commission in regulating the crypto market.
Before the shutdown, a person familiar with the matter said the bill was “close,” but now, with federal agencies operating with limited staff, it’s going to take longer.
Agency staff working with congressional committees on policy — like cryptocurrency market structure — are largely furloughed during the shutdown, reducing the chances we’ll see a draft soon, according to a person close to it.
With federal agencies operating with limited staff, new crypto spot ETFs are not expected to be approved until the shutdown ends. In its going-concern plan, the SEC said it would not review or approve registration statements or issue notices of entry into force.
Given the SEC’s new generic listing standards and the extensive work done by issuers and agency staff before the shutdown, two issuers who spoke with Blockworks expressed confidence that the new products would get the green light quickly after federal operations resume.
The issuers added that they have not received any communications from the SEC since the shutdown began last week.
Get the news delivered to your inbox. Explore Blockworks newsletters:
