U.S. Crypto Legislation Unlikely to Advance This Year as Industry Turns to Next Congress

Several U.S. crypto industry figures expect little progress on legislation during the final weeks of the current congressional session, the lame-duck period between the election and the next Congress’s start on January 3. According to Odaily, Chamber of Digital Commerce CEO Cody Carbone said prospects for advancing the CLARITY Act are limited, as lawmakers appear to be turning to other issues. After the midterm elections, Democrats are expected to have more influence in the next Congress, leaving Republicans with limited time and giving Democrats little incentive to make major compromises now. A few issues could still draw attention, including crypto tax rules, granting the Commodity Futures Trading Commission more authority over spot crypto markets, and speeding up data center construction permits. A bipartisan data center permitting bill has passed an initial Senate procedure, but some Bitcoin mining companies disagree over provisions that could require them to cover grid expansion costs and pay higher energy bills. Blockchain Association head Kristin Smith said the current Congress has little time and many items on its agenda, while the most important U.S. crypto regulatory rules are still being set by the Securities and Exchange Commission and the CFTC.