Republican Party Seeks to Advance Digital Asset Legislation Amid Government Shutdown

Amid the ongoing U.S. government shutdown, Republican lawmakers have reaffirmed their commitment to passing landmark digital asset legislation. Their goal is to provide regulatory clarity for the burgeoning sector by 2026 through the proposed CLARITY Act—a comprehensive framework aimed at addressing the complexities of the digital asset market.

Commitment to Legislative Progress Despite Shutdown

Wisconsin Representative Bryan Steil, a leading proponent and original co-sponsor of the CLARITY Act in the House of Representatives, has emphasized that the legislative timeline remains on track despite federal disruptions. Speaking in an interview with CNBC, Steil expressed confidence that the bill could advance this year, underscoring its significance in establishing regulatory clarity for the digital asset industry.

“I still believe there is an opportunity to finalize the CLARITY Act within this year,” Steil stated, highlighting optimism for expedited review in the Senate once the shutdown is resolved. He further noted, “If the Senate adopts the legislation based on the House text, there’s a strong possibility it will pass Congress and be signed into law before the year ends.”

This renewed commitment by Republican lawmakers comes during the prolonged federal government shutdown, which entered its eighth day following the Senate's failure to pass a stopgap funding bill. The shutdown has derailed numerous agency operations, furloughed thousands of federal employees, and disrupted essential services such as air travel.

Legislative Challenges in the Senate

Although the CLARITY Act successfully cleared the House of Representatives during last July’s “Digital Asset Week,” momentum has stalled in the Senate. Senator Cynthia Lummis, a Republican from Wyoming and a staunch advocate for the legislation, had initially aimed to push for a vote within the Senate Banking Committee by the end of September. However, progress has been delayed, largely due to broader legislative gridlock and now exacerbated by the government closure.

The shutdown’s impact is most visibly felt within regulatory bodies such as the Securities and Exchange Commission (SEC), which is functioning with significantly reduced staffing. The agency’s ability to review applications for digital asset-focused exchange-traded funds (ETFs) has been severely hampered, creating uncertainty for industry participants awaiting regulatory approval. While the SEC’s electronic systems remain operational to process filings, meaningful headway in reviews is unlikely until federal operations fully resume.

Congressional Pressure Mounts

Despite the shutdown, Congress continues holding sessions, and lawmakers remain on the federal payroll—a contentious issue amid growing calls for action to resolve the impasse. Speaker of the House Mike Johnson has noted that the House will stay in recess until the Senate passes legislation to resolve the shutdown crisis. This legislative gridlock threatens to divert attention from critical issues, including moving forward with economic initiatives such as the CLARITY Act.

Meanwhile, bipartisan pressure is building to reinstate government operations. Advocacy groups and citizens alike are urging lawmakers from both sides of the aisle to prioritize resolving the funding standoff and shift focus back to advancing policies central to the nation’s economic health—including comprehensive digital asset regulation.

A Year Critical for Digital Asset Legislation

Despite the challenges posed by the government shutdown and Senate delays, Republican leaders remain optimistic that the CLARITY Act will gain traction through Congressional channels. The legislation is poised to establish a pivotal framework for regulating digital assets, reflecting the growing importance of the cryptocurrency and blockchain industries in global finance.

With the CLARITY Act in place, stakeholders across the digital asset ecosystem—investors, developers, and institutions—could finally benefit from a clear set of rules that facilitate innovation while mitigating risks. However, for the legislation to meet its ambitious timeline and secure passage by 2026, bipartisan collaboration will be essential in tackling immediate legislative obstacles.

As Washington grapples with its impasse, its ability to resolve pressing budgetary disputes and pave the way for economic and regulatory advancement remains in sharp focus.