As the US Congress reconvenes after its summer recess, cryptocurrency policy is poised to be a significant area of focus. Several key legislative items are on the agenda, including establishing a digital asset market structure, the nomination of a Commodity Futures Trading Commission (CFTC) chair, and legislation concerning a central bank digital currency (CBDC).

One of the primary objectives for Republicans is to advance a bill that establishes a clear crypto market structure. The House has already passed the Digital Asset Market Clarity (CLARITY) Act with bipartisan support, sending it to the Senate for further consideration. This bill aims to provide a comprehensive regulatory framework for crypto assets.

Senator Cynthia Lummis, a prominent advocate for less restrictive crypto regulations, anticipates that the Senate Banking Committee will pass its version of the market structure bill by the end of September, potentially building upon the CLARITY Act. Following this, the Senate Agriculture Committee may consider the bill in October. Lummis has expressed optimism that the legislation could reach President Trump's desk before the year concludes. However, as of early September, neither the Senate Agriculture Committee nor the Senate Banking Committee had announced hearings to discuss the bill.

The selection of a new CFTC chair is another crucial item. With Caroline Pham, a Republican, becoming the sole remaining commissioner and acting chair of the CFTC, the confirmation of a permanent chair is essential for providing stable leadership to the agency.

In May 2024, Congress demonstrated surprising bipartisan momentum on crypto policy, although it was not anticipated that a signed law would result from this. Both chambers passed a proposal to overturn SEC guidance on institutions holding customer crypto, known as SAB 121, though the bill was ultimately vetoed. The House also passed the FIT 21 Act, a comprehensive regulatory framework for crypto, with support from 71 Democrats. Additionally, a Republican-led bill to block the Federal Reserve from issuing a digital dollar (CBDC) passed along party lines.

The FIT 21 Act, if enacted, would modify the SEC's oversight of the digital asset ecosystem. The SEC asserts that most digital tokens are securities and must be registered under the Securities Act of 1933. The bill would empower the CFTC to oversee digital assets as a commodity if the blockchain is decentralized and would expand the CFTC's authority to oversee cash or spot market digital commodity transactions.

Several factors could influence the future direction of crypto policy. Resistance from the Senate, particularly from Senate Banking Chairman Brown and Senator Warren, who has expressed concerns about AML requirements, could stall progress. The November elections are also likely to play a role, and Chairman McHenry is expected to push for the inclusion of crypto legislation in any year-end package.

Other potential legislative actions include the Crypto-Asset Environmental Transparency Act, introduced in the House in March 2023. This bill would establish GHG emission reporting requirements for certain crypto-asset mining operations. It would direct the EPA to revise reporting requirements to include crypto-asset mining operations that consume five or more megawatts of electricity. The EPA would also be required to gather information from crypto-asset mining operations and assess whether any are operating without valid permits.