A significant moment for U.S. crypto occurred when the House of Representatives passed the Digital Asset Market Clarity Act, setting the regulatory stage for the industry. However, while the House celebrated its 308-122 vote, the Senate was working on a similar bill that may draw more attention.
Similar to how President Trump encouraged House lawmakers to approve the Senate’s stablecoin bill as it was, any market structure legislation that meets the Senate’s demanding 60-vote requirement will likely be a balanced compromise that the administration will want to pass without changes in the House.
Historically, the House has been proactive in crafting crypto legislation, while the Senate has proven to be a tougher battleground. Nonetheless, prominent House Republicans like Majority Whip Tom Emmer and Financial Services Committee Chairman French Hill have urged the Senate to adopt the Clarity Act and pass it as is.
“The Senate must finish the job on America’s pro-crypto future and pass the CLARITY Act,” Emmer stated in a recent social media post. If the Senate approves the House bill without changes, it will be sent directly to Trump’s desk.
However, pro-crypto lawmakers in the Senate have their own plans, aiming to craft a strategy that garners enough Democratic support to ensure the final bill receives significant backing during the Senate vote before heading to the House for potential approval.
Here are the steps that need to occur before U.S. crypto firms are fully regulated:
- Senators from both parties finalize the bill, a process that may extend into next month for the Senate Agriculture Committee, one of the two committees needing to approve it.
- The Senate Banking and Agriculture Committees both vote to advance the legislation for a floor vote.
- An amended version is then considered by the entire Senate, where a 60-vote majority is usually necessary to advance any legislation.
- If passed, the bill is presented for a vote in the House, which has already overwhelmingly supported the similar Clarity Act.
- If it receives approval in the House, the bill is signed into law by President Trump, although Senator Cynthia Lummis has indicated this outcome may not occur by year-end.
- The implementation phase begins, requiring numerous federal agencies to draft actual regulations the industry must adhere to—a process that can take years to finalize.
Like the Clarity Act, the Senate bill aims to define clear boundaries for digital asset labels and identify which agencies should regulate them. While the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) is already in effect for stablecoin issuers, the new bill is expected to cover broader aspects of the crypto industry, potentially designating the Commodity Futures Trading Commission (CFTC) as a primary regulatory body.
So far, public insight into the Senate’s legislative work has come from a lengthy 182-page discussion draft unveiled by Republicans. Although it hasn’t been formally introduced, Senate Banking Committee members hope to progress it to the amendment stage soon, although challenges may arise, as some senators have expressed concerns about its readiness.
Given typical Senate challenges, particularly with parties currently in a standoff over U.S. spending plans, negotiations could delay progress, and the Senate often operates in a manner that prioritizes one issue at a time.
“I don’t want to impose an arbitrary deadline, as we are in negotiations for a bipartisan budget,” stated Senator Kirsten Gillibrand, who has sought bipartisan crypto legislation for years. “Currently, the most pressing issue for Congress is the fiscal cliff.”
This negotiation “will consume much of people’s time,” she noted at a recent RialCenter event.
Once a crypto bill passes the Senate, Patrick Witt, Trump’s new crypto adviser, mentioned that the White House expects it to have been collaboratively crafted with House lawmakers and will require their approval as written.
Yet, even if the anticipated market structure legislation becomes law by the end of 2025, it marks the beginning of a lengthy process to interpret and develop regulations governing the sector through various federal agencies. Regulators like the SEC, CFTC, and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) will need to evaluate their requirements and establish compliance guidelines—an involved process typically requiring proposals and public comment.
The usual rulemaking timeline can extend one to two years, especially when the subject matter has elevated public interest. This context adds layers of complexity compared to conventional regulatory revisions. The last time U.S. financial regulators tackled an expansive regulatory project of this nature was in the wake of the Dodd-Frank Act of 2010, and even now, one fundamental aspect of that law remains unimplemented.
At the earliest, U.S. regulatory bodies may not finalize new regulations until deep into 2026, and historical precedent suggests new financial standards often come with a one- to two-year implementation window before enforcement begins.
The Clarity Act was effectively just the starting signal.
Read More: Father of Crypto Bills, French Hill, Says Market Structure Effort Should Tweak GENIUS
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