Even as Washington remains hobbled by a partial government shutdown, momentum in US crypto market structure legislation is quietly reaching new heights.
Coinbase CEO Brian Armstrong said the industry is “90%” of the way there, describing unprecedented bipartisan cooperation among senators working to finalize the long-awaited regulatory framework for digital assets.
Armstrong, who spent this week meeting with Senate Democrats and Republicans, said the CLARITY Act’s remaining sticking points — including rules around decentralized finance (DeFi) and stablecoin rewards — are close to being resolved.
“Both sides are working hard to determine the remaining 10%, and we are getting closer,” he said in a social media post. “We are optimistic that a bill will pass by the end of the year and hope to have it out of committee by Thanksgiving.”
The Coinbase chief’s optimism comes amid growing engagement between lawmakers and crypto executives, marking one of the most serious bipartisan efforts to clarify digital asset regulation since Congress began debating the issue years ago.
Bipartisan crypto breakthrough in July
The legislation at the center of these discussions – the Digital Asset Market Clarity Act (CLARITY Act) – passed the House of Representatives in July with a strong bipartisan majority of 294-137.
The bill is now before the Senate Banking Committee, chaired by Sen. Tim Scott (R-SC), with the hope that it can be submitted to the Senate before the end of the year.
In an interview with CNBC on Wednesday, Armstrong described “very productive” meetings with senators from both parties, calling the level of collaboration a positive sign for the U.S. crypto industry.
According to several people familiar with the meetings, top lawmakers, including Senate Majority Leader Chuck Schumer (D-NY), Sen. Kirsten Gillibrand (D-NY), and Sen. Cynthia Lummis (R-WY), attended or participated in discussions with Armstrong and other crypto executives such as Kraken co-CEO David Ripley, founder of Uniswap Labs Hayden Adams and Sergey of Chainlink Labs. Nazarov.
The CLARITY Act aims to end years of regulatory ambiguity by clearly distinguishing which digital assets are considered securities under the Securities and Exchange Commission (SEC) and which fall under the Commodity Futures Trading Commission (CFTC).
Under the bill, networks that are sufficiently decentralized would fall under CFTC oversight, while tokens with more centralized control or functioning as investment contracts would remain under SEC jurisdiction.
The legislation also introduces clearer rules for decentralized finance, secondary markets and custodial services – areas where the lack of uniform federal guidance has long frustrated innovators and investors.
DeFi and stablecoin legislation
However, the last 10% of negotiations could prove to be the most difficult. One of the main unresolved questions is how to regulate decentralized finance platforms.
Armstrong urged lawmakers to focus oversight on decentralized intermediaries – such as interfaces or aggregators – rather than attempting to regulate open source protocols themselves.
Another area of tension involves stable rewards, which Armstrong says the banking lobby is working to eliminate. Coinbase and other industry advocates argue that consumers should be able to earn a return on regulated stablecoin holdings, the same way traditional savings accounts pay interest.
These debates highlight the competing visions within Congress: Democrats remain focused on illicit financing prevention and consumer protection, while Republicans emphasize innovation and competitiveness.
Despite the good will of both parties, the timing remains precarious. The current government paralysis has slowed down the work of the committees and postponed the official formulation of the bill. Some lawmakers, including Sen. John Kennedy (R-LA), expressed skepticism that the committee would move forward, citing unanswered questions about regulatory authority and industry influence.
Still, proponents say the dynamic is undeniable. Senator Lummis, a long-time advocate for digital asset legislation, recently told attendees at the SALT Wyoming Blockchain Symposium that she expects the Market Structure Bill to reach the President’s desk “before the end of the year – hopefully before Thanksgiving.”
