Despite the ongoing partial government shutdown, momentum is building in Washington D.C. toward the completion of the U.S. crypto market structure bill — landmark legislation that could finally bring regulatory clarity to the digital asset industry. Coinbase CEO Brian Armstrong has voiced strong optimism, stating that the crypto sector is “closer than ever” to achieving a comprehensive legal framework governing how cryptocurrencies are traded, issued, and supervised in the U.S.

The proposed bill formally known as the Financial Innovation and Technology for the 21st Century Act (FIT21), seeks to define the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This is a long-standing industry issue, as differing interpretations of whether crypto tokens qualify as securities or commodities have led to widespread confusion and litigation.

According to legislative aides, the final language of the bill is now undergoing last-minute revisions to secure bipartisan support from both chambers of Congress. Lawmakers from both parties including House Republicans led by Rep. Patrick McHenry and Senate Democrats like Sen. Kirsten Gillibrand have worked behind the scenes to ensure that the bill balances consumer protection with innovation enablement.

The legislation aims to establish a clear registration pathway for digital asset issuers, provide stablecoin oversight, and define the legal parameters for crypto trading platforms. If passed, FIT21 would mark the most significant federal crypto law in U.S. history, offering the first coherent national framework for the $2 trillion industry.

Armstrong, whose company has faced numerous regulatory battles with the SEC, praised the bill’s progress during a recent industry roundtable. “For the first time, we’re seeing real alignment across political lines on the need for clarity, fairness, and innovation,” he said. He emphasized that establishing rules of the road is essential to keeping the U.S. competitive with regions like Europe, which has already implemented the Markets in Crypto-Assets Regulation (MiCA).

Supporters argue that the bill would also strengthen investor confidence and encourage more institutional participation in the crypto market, which has seen major players like BlackRock and Fidelity launch Bitcoin ETFs amid surging demand. On the other hand, critics warn that the bill could weaken investor protections if it grants too much oversight power to the CFTC, which traditionally regulates commodities markets rather than securities.

Meanwhile, the Blockchain Association and the Crypto Council for Innovation have publicly endorsed the legislative effort, urging swift passage. Both groups argue that an absence of clear regulation has driven talent and investment offshore to crypto-friendly jurisdictions like Singapore, Switzerland, and the United Arab Emirates.

As the bill approaches a potential vote, industry stakeholders remain cautiously hopeful. Should FIT21 pass, it would redefine the global crypto landscape, establishing the United States as a leader in digital asset governance, a position it has long risked losing to more agile international competitors.