The hope for substantial progress in U.S. cryptocurrency legislation within the year is slim, and the industry is turning its attention to the new Congress

According to CoinDesk, several figures in the U.S. cryptocurrency industry expect that during the last few weeks of the current congressional session (the "lame duck" period from the end of the election until the next Congress begins on January 3), it will be difficult to push forward any substantial progress on cryptocurrency legislation.

Cody Carbone, CEO of the Digital Chamber of Commerce, stated that hopes for further progress on the CLARITY Act are low, as lawmakers seem to have gradually shifted their attention to other matters. With the Democrats gaining more control in the new Congress after the midterm elections, the Republicans have limited time left, and the Democrats lack the motivation to make significant compromises at this time.

There are still a few issues that may receive attention, including cryptocurrency tax rules, granting the Commodity Futures Trading Commission (CFTC) more regulatory authority over the cryptocurrency spot market, and expediting data center construction permits. Among these, the bipartisan bill related to data center permits has passed preliminary procedures in the Senate, but some Bitcoin mining companies have disagreements regarding potential requirements to bear the costs of grid expansion and higher energy expenses.

Kristin Smith, head of the Blockchain Association, stated that with limited time left in this Congress and many items on the agenda, the most important regulatory rules for the U.S. cryptocurrency industry are still being set by the Securities and Exchange Commission (SEC) and the CFTC.