North Carolina Senator Thom Tillis has warned that Congress faces a narrow window to pass long-awaited cryptocurrency legislation, cautioning that political gridlock could derail the effort early next year.
Speaking to Bloomberg on Monday, the Republican member of the Senate Banking Committee said lawmakers must act “by the first part of January, February” to advance the crypto market structure bill before election politics take over.
I’m not optimistic about us moving much further on anything around digital assets, stablecoins, or crypto in this Congress, Tillis said, adding that the 2026 midterm elections would likely stall progress.
The warning comes as Washington remains paralyzed by a government shutdown that began on October 1, triggered by disputes over healthcare funding and subsidy cuts.
Divided congress stalls progress
While the Senate continues to meet, House Speaker Mike Johnson has delayed most floor business, leaving several crypto-related bills including the Digital Asset Market Clarity Act, or CLARITY Act in limbo.
The CLARITY Act, passed by the House of Representatives in July with strong bipartisan support (294–137), seeks to define which digital assets fall under the Commodity Futures Trading Commission (CFTC) and which belong to the Securities and Exchange Commission (SEC).
It aims to provide long-needed clarity on digital asset classification, distinguishing decentralized “digital commodities” from more centralized “restricted digital assets.”
The bill, alongside the GENIUS Act signed by President Donald Trump in July, represents the most comprehensive attempt yet to create a federal crypto framework.
However, progress has slowed sharply since early October after a Democratic proposal for decentralized finance (DeFi) rules was leaked to the press, drawing backlash from industry leaders.
Lawmakers push for year-end deal
Talks between Republicans and crypto-friendly Democrats have stalled amid the shutdown, though Senator Cynthia Lummis previously said she expected the Senate’s version the Responsible Financial Innovation Act to become law by 2026.
Tillis’s remarks, however, reflect growing urgency among lawmakers who fear the legislative window is closing.
Senate Democrats and Republicans are expected to meet separately with crypto executives this week to revive discussions.
On October 20, Senator Kirsten Gillibrand led a closed-door roundtable with key industry figures, including Galaxy CEO Mike Novogratz, Kraken CEO Jesse Powell, Chainlink’s Sergey Nazarov, and Solana Policy Institute President Kristin Smith.
White House AI and crypto czar David Sacks also expressed optimism that the bill could move forward before the end of 2025, calling it an “excellent opportunity to deliver clarity.”
Still, prediction market data from Polymarket shows only a 20% chance that the CLARITY Act will become law by the end of 2025, down from 87% in mid-July.
While other countries push ahead with digital asset regulation, Tillis cautioned that if Congress fails to act by February, the U.S. could again miss its chance for comprehensive crypto reform.