The CLARITY Act could see its passage timeline extended before being signed into law. This renewed fear comes as the U.S government shutdown suspension deadline comes to an end in the next 7 days.
Government Shutdown Fears Put CLARITY Act in Limbo
The crypto regulation bill is at risk of losing momentum as the shutdown deadline nears. The U.S Government had initially ended the longest shutdown it had ever seen, setting January 30 as the due date for certain conditions to be met.
However, the deadline is approaching, and some of the issues raised remain unresolved. This could dampen the progress of major regulatory policies that are still under deliberation.
At the top of this is the CLARITY Act which has been the main focus of the United States Senate since the shutdown ended. As at press time, the Banking committee is still negotiating on major issues raised by crypto firms. Also, the Agriculture commitee have their markup set for the 27th with other events to follow after.
A new closure would immediately stop any meetings or proceedings on the bill. For instance, last September, the Senate Banking Republicans’ planned market structure markup was delayed due to the government shutdown then. This stopped progress for nearly two months.
Notably, when President Trump was asked in a FOX Business interview about his thoughts on the matter, he said a shutdown happening again is very likely.
Apart from the CLARITY Act, other proceedings were delayed in the crypto space. Immediately after the closure was announced, the SEC had to put the review of crypto ETFs on hold, stalling the progress of various funds.
House Approves Spending Bill Ahead of Senate Vote
The House representatives have passed the final bill on federal government funding measures. They would now send the package to the Senate to avoid another U.S government shutdown.
The reps approved the budget with full bipartisan support. The Senate is expected to vote on the progress of this next week as Democrats still look for ways to oppose the full funding slate.
This could be a major development for the progress of the CLARITY Act amid its current momentum. Additionally, traders are increasingly confident that another closure will not happen, according to Polymarket.
Source: PolymarketSource: https://coingape.com/clarity-act-progress-under-threat-as-u-s-shutdown-deadline-nears/
