US cryptocurrency legislation has entered the final weeks of the Republican-controlled Congress with the CLARITY Act still stalled, leaving financial regulator nominations among the few crypto-related decisions that lawmakers may complete before January.
Summary
- The CLARITY Act remains stalled as Congress enters its final weeks before Democrats take control in January.
- Senator Cynthia Lummis criticized Democrats for rejecting crypto legislation containing SEC registration requirements for token issuers.
- President Trump nominated four SEC and CFTC commissioners as lawmakers prioritize regulatory appointments before year-end adjournment.
- Industry leaders expect limited progress on crypto legislation but see possible agreements on taxation and stablecoin rules.
- A bipartisan data-center permitting bill could affect Bitcoin miners through faster approvals and higher electricity infrastructure costs.
Senator Cynthia Lummis, in a November 15 post, criticized Democrats over consumer protections in the proposed market structure law. She said Democrats had demanded a mandatory SEC registration process requiring crypto projects to certify their offerings before selling them to the public, yet voted against the measure containing that provision.
The disagreement follows the November 3 midterm elections, when Democrats won control of both chambers. Republicans retain their majorities until the new Congress begins January 3, 2027, but industry representatives expect little time for another major attempt at passing crypto legislation.
CLARITY Act Remains Stuck After September Senate Vote
The Digital Asset Market Clarity Act failed to advance on September 15 after senators voted 49–50 on ending debate over taking up the bill. The motion needed 60 votes, leaving supporters 11 short of the threshold. Senator Thom Tillis filed a motion to reconsider, which provides a possible procedural route back to the floor without guaranteeing another vote.
As crypto.news previously reported, the House passed the bill 294–134 in July 2025. That vote included 78 Democrats, demonstrating that some lawmakers in the party supported a market structure framework even as others disputed the protections in its text.
Lummis’s latest criticism focused on a proposed SEC entry requirement. “Democrats demanded a mandatory SEC front door,” she wrote, before arguing that they rejected the consumer safeguard they had sought. Her statement reflects the Republican senator’s position in a continuing dispute over which agency should oversee digital asset offerings and trading.
Cody Carbone, CEO of the Digital Chamber, said he saw “little hope” of substantive progress before lawmakers adjourn. He attributed the outlook to competing year-end priorities and a sense that members had moved on from the failed CLARITY effort.
Trump’s SEC and CFTC Nominees Become the Immediate Priority
On November 12, President Donald Trump nominated four commissioners, selecting a Republican and a Democrat for each of the Securities and Exchange Commission and Commodity Futures Trading Commission. The SEC nominees are Steven Levine and former CFTC Commissioner Kristin Johnson; the CFTC selections are Nathan Anonick and Matthew Rowland.
The regulator appointments followed months in which both agencies operated with vacancies. SEC Chairman Paul Atkins serves alongside Commissioner Mark Uyeda, while CFTC Chairman Mike Selig is currently the agency’s only commissioner.
The Senate Banking Committee has scheduled a hearing for Johnson and Levine on November 19 at 10 a.m. Eastern. Its Agriculture Committee counterpart has not announced a hearing date for the two CFTC nominees. Both panels must consider their respective candidates before the full Senate can confirm them.
Kristin Smith, interim CEO of the Blockchain Association, described the lame-duck period as having a “short calendar and a long to-do list.” She said the SEC and CFTC were already developing the regulations that would govern digital assets, even without a comprehensive market structure law.
Democrats Prepare a Different Approach to Crypto Rules
The incoming Democratic majorities could return to market structure legislation with different priorities. Discussions about stronger SEC oversight have included proposals associated with Representative Maxine Waters covering custody safeguards, reserve reporting and conflicts involving public officials.
Democratic support is not uniform. A review of congressional voting found that 78 House Democrats backed CLARITY in 2025 while 134 opposed it. Seven Democratic senators subsequently reaffirmed support for bipartisan digital asset legislation after September’s setback, including consumer protection and ethics requirements.
Industry groups have identified narrower possible agreements on crypto taxation, stablecoin yields and illicit-finance safeguards. Ryan Eagan, director of US federal affairs at the Crypto Council for Innovation, said a last-minute attachment to legislation that Congress must pass remained possible, although no such agreement had been announced.
Bitcoin Mining Interests Weigh Data-Center Permitting Bill
A separate infrastructure measure offers a more immediate decision involving some cryptocurrency businesses. On November 9, the Senate voted 73–25 to begin considering the bipartisan American Affordability and Jobs Act, which seeks to speed up federal permitting for energy projects and data centers.
The Senate Energy Committee’s proposal would require large data centers to pay the cost of their electricity service and related grid upgrades. Carbone said some Bitcoin miners supported faster permitting and more predictable federal rules, while others objected to potentially higher costs for new grid infrastructure.
The bill has cleared an initial Senate hurdle but has not passed Congress. House Democrats remain divided over whether to revise the permitting proposal now or negotiate different environmental and energy provisions once their party takes control in January.
