Crypto Execs Get Mixed Message From Capitol Hill On Passage of Market Structure Bill

“Democrats don’t like these timelines being put on them,” a source familiar with the events of both meetings told Decrypt. “But the Republicans are like: ‘If we don’t move this in November, we don’t get it done by the end of the year, then the whole thing derails.’”

The House passed the CLARLITY Act in July to define clear lines of jurisdiction over digital assets between the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission.” The Senate took up its version of market-structure legislation in September but opposition to the measure, primarily from Democrats, has slowed progress.

Any Senate-passed bill would also likely be different from the CLARITY Act, meaning it would need to go back to the House for approval. The House is not currently in session due to the government shutdown, making the timing of any action of a Senate bill uncertain. Even if the shutdown were to end soon, Congress is facing a November deadline to pass a dozen appropriations bills that likely would consume most of what time is left on the legislative calendar for the year.

According to Decrypt, Democratic Sens. Catherine Cortez Masto (NV), Mark Warner (VA) and Ruben Gallego (AZ) expressed frustration over leaks of a Democratic proposal and public bashing of it online.

“They were very upset with the reaction on Twitter,” one source said.

At least one Democrat, Sen. Cory Booker (NJ), also urged the executives to press the White House to name a more bipartisan mix of commissioners at the SEC and CFTC.

Related: Fed Considering Payment-Only Master Accounts for Crypto Banks

Both agencies have moved aggressively under the Trump administration to enable and encourage digital-asset market development.

Not all the executives came away from the meetings discouraged, however. Chainlink CEO Sergey Nazarov told Decrypt he was encouraged by the pro-crypto sentiment he encountered in the meetings from both sides of aisle despite the race against the clock.

“The shutdown is going to be the biggest factor,” he said.

Nazarov was accompanied on the visits by Coinbase CEO Brian Armstrong, Galaxy CEO Mike Novogratz and Andreessen Horowitz Head of Crypto Policy Miles Jennings.

A further complicating factor looming over passage of the Senate bill is President Trump’s drive to gain direct White House control over what historically have been considered independent agencies like the SEC and CFTC.

In September, the Supreme Court placed a stay on a lower court ruling that had barred the president from firing Democratic Federal Trade Commissioner Rebecca Slaughter before her term was up. The Court’s brief, unsigned order allowed the firing to proceed while it considers the broader question of the president’s authority over congressionally established independent regulatory agencies.

If the Court upholds the administration in the FTC case it could throw the fate of the SEC and CFTC into doubt, further muddying the water for crypto market structure legislation.