U.S. Legislative Gridlock on Market Structure Bill
The Crypto Clarity Act, a bill establishing clearer regulatory jurisdiction between the SEC and CFTC, has encountered substantial obstacles in the Senate. Senate Majority Leader John Thune signaled the bill likely will not pass before the August recess, citing disagreement between Democrats and Republicans over ethics language provisions embedded in the legislation.
Despite broad coalition support—including backing from major institutions like Fidelity, the National Fraternal Order of Police, and leading crypto industry advocacy groups—the bill remains stalled. Senate Democrats have rejected GOP-proposed ethics components, and lawmakers are divided on whether the measure adequately addresses insider trading concerns. Senator Elizabeth Warren stated that the House-passed bill on insider trading 'won't solve the problem,' noting that lawmakers will still be permitted to own and sell stocks.
The White House has indicated that Senate Democrats achieved meaningful concessions from President Trump regarding crypto-related limits on his personal dealings, suggesting the administration views the Clarity Act's restrictions as a partial victory for that faction. However, these developments have not resolved the partisan tensions blocking passage.
