Crypto Market Structure Bill Faces Delays as Political Uncertainty Grows

The crypto market structure bill is facing mounting delays as political dynamics in Washington complicate its path forward. According to policy analysts at TD Cowen, the bill’s passage is becoming increasingly uncertain, with approval now more likely to slip into 2027 and implementation potentially pushed back until 2029 or later. While lawmakers could technically advance the legislation sooner, shifting political priorities are slowing momentum and reducing the urgency to act.

TD Cowen managing director Jaret Seiberg points to electoral calculations as a key factor behind the stall. Democrats may be less inclined to rush the crypto regulation bill if they believe they have a strong chance of regaining control of the House of Representatives in the 2026 midterm elections. From that perspective, delaying action could allow them to shape the final rules under more favorable political conditions. At the same time, election outcomes remain uncertain, which leaves room for compromise if both parties decide that regulatory clarity for the crypto market is preferable to prolonged ambiguity.

Congressional aides have already spent months refining the technical language of the crypto market structure framework, suggesting that an agreement could still emerge quickly if negotiations accelerate. However, one of the most contentious issues remains the conflict-of-interest provision. Democrats are pushing for rules that would prohibit government officials from holding or operating crypto-related businesses, a stance that is expected to face strong resistance from President Donald Trump. Any provision that would apply immediately to Trump or his family could effectively halt negotiations, especially amid reports that crypto investments have contributed to the Trump family’s growing net worth.

A potential compromise under discussion involves delaying enforcement of conflict-of-interest rules for several years after enactment. This approach would push implementation beyond the next presidential term, easing political resistance while allowing the bill to pass. TD Cowen notes that time could ultimately favor enactment, as delayed enforcement may resolve the most divisive issues. In the near term, lawmakers are expected to focus on narrower efforts such as the CLARITY Act, which forms a key component of the broader crypto market structure legislation and could help keep bipartisan talks moving forward.