In recent weeks, there has been minimal public progress regarding the crypto market structure bill, known as the Clarity Act. Prognosticating about its fate is challenging, but it’s apparent that time is running out to pass it. This content is part of State of Crypto, a CoinDesk newsletter exploring the nexus between cryptocurrency and government policy. To receive future editions, click here for subscription options. It appears unlikely that the crypto market structure bill will be passed this month. Though not concluding the legislative process, we are nearing a timeline that could lead to many more gray hairs. Much of the activity surrounding market structures — such as Securities and Exchange Commission staff statements — is not set in stone. The SEC has ample time to develop rules through a notice-and-comment period, but this process requires significant duration. Market structure legislation aimed to solidify crypto industry goals and regulations into law, making it challenging for future administrations to reverse these directives. Essentially, without the Clarity Act, discussions on this topic may recur in subsequent years. This is not an endorsement of the bill; rather, it’s an acknowledgment of a probable scenario. Memorial Day, May 25 — approximately one month from now — has been viewed since at least last December as a critical deadline for advancing legislation to have any chance of passage before the election. As summer approaches, lawmakers will leave Washington D.C. to focus on their campaigns, leaving little time to address a crypto bill or other legislative matters. Prior to their departure, Congress plans to deliberate on funding for the Department of Homeland Security (House) and decide on Kevin Warsh’s potential appointment as the next Fed chair (Senate). Jesse Hamilton from CoinDesk outlined necessary steps last week to get Clarity across the finish line — i.e., to President Donald Trump’s desk. The crypto industry is eager for this bill, with over 100 entities recently urging a markup hearing in the Senate Banking Committee via an open letter. However, it remains uncertain how close the committee is to progressing. Discussions continue to focus on stablecoin yields, but other unresolved issues linger publicly. Even if these concerns are addressed, the House will need to vote again on the bill. Congressman French Hill, who chairs the House Financial Services Committee, informed CoinDesk earlier this month that many outstanding matters related to sales practices for stablecoins and decentralized finance were already resolved in the House version of the bill. This should facilitate finding common ground with the Senate. “I think the Senate has substantially incorporated insights from the House’s efforts on FIT21 [the Financial Innovation and Technology for the 21st Century Act] from last Congress and CLARITY this Congress,” he noted. “This is evident in the Senate Agriculture markup and the core draft components of the Senate bill.” Additionally, we’ll be discussing these matters at Consensus Miami next month — it promises to be an engaging event. If you have thoughts or questions for next week’s discussion or any other feedback, feel free to email me at [email protected] or connect with me on Bluesky @nikhileshde.bsky.social. You can also join the group conversation on Telegram.