U.S. Senate Delays Crypto Market Structure Bill, Pushing Key Regulatory Decisions to 2026

The U.S. Senate Banking Committee has officially postponed any markup hearings on major crypto market structure legislation until next year, delaying a long-anticipated step toward defining how federal regulators will oversee the digital asset industry. The decision confirms that lawmakers will not move forward with a hearing that many industry participants hoped would take place before the end of this week.

According to a committee spokesperson, Chairman Tim Scott and members of the Senate Banking Committee have made meaningful progress in bipartisan negotiations with Democratic counterparts, but discussions are still ongoing. As a result, lawmakers opted to delay formal action rather than rush a markup before consensus is reached. While the delay was widely expected, it represents a setback for the crypto industry, which had been eager for at least incremental progress in the absence of a comprehensive regulatory framework.

The crypto market structure bill is designed to clarify how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regulate digital assets. A central component of the proposal would designate the CFTC as the primary regulator of crypto spot markets while more clearly outlining when and how securities laws apply to cryptocurrencies and related products. The Senate Banking Committee, which oversees the SEC, has circulated multiple draft versions of the bill, while the Senate Agriculture Committee, responsible for the CFTC, has released one discussion draft and must still conduct its own markup hearing.

Looking ahead, timing remains a major challenge. When Congress returns from its holiday recess, its immediate focus will be funding the federal government, as the current spending measure expires on January 30. Even if a shutdown is avoided, lawmakers will have limited time to address crypto market structure legislation before attention shifts toward the 2026 midterm elections.

Democratic concerns continue to center on financial stability, market integrity, and ethics, particularly in light of President Donald Trump and his family’s extensive crypto-related business interests. Despite legislative delays, regulators are already adjusting their approach. The SEC has issued several staff statements and hosted roundtables on crypto regulation, while the CFTC has taken steps to allow licensed institutions to engage in spot crypto trading and has recently granted limited no-action relief to prediction market operators.