Crypto Market Structure Bill Stalled: Senate Banking Committee Pushes Markup To Early 2026
Washington hits the brakes on crypto regulation—again.
The Senate Banking Committee just punted its landmark crypto market structure bill all the way to early 2026. No vote, no debate, just a quiet calendar shuffle that leaves the industry in regulatory limbo for another year.
Why The Delay?
Committee leadership cites a packed legislative docket—everything from banking oversight to housing policy is jostling for floor time. The crypto bill, despite bipartisan whispers of support, got shoved to the back of the queue. It's a classic D.C. maneuver: when in doubt, delay.
The Industry's Reaction
Expect frustration from crypto advocates who've been pushing for clear rules of the road. The delay means another 12+ months of operating under a patchwork of state regulations and regulatory guidance that's often more guesswork than governance. For TradFi giants dipping toes into digital assets, it's another year of costly compliance ambiguity.
What's Next?
All eyes turn to 2026. The bill's proponents will spend the interim lobbying, refining language, and hoping the political winds stay favorable. Opponents get more time to rally opposition. Meanwhile, the market won't wait—innovation barrels ahead, regulators play catch-up, and the gap between law and technology widens.
One cynical take? The delay suits everyone in the beltway just fine—it lets politicians appear busy without actually doing anything that might upset donors or voters. The ultimate Washington win: kick the can, collect the consulting fees, and repeat.
Pushing Crypto Bill Discussions To Next Year
In a statement released on Monday, a spokesperson for Chair Scott, a South Carolina Republican, noted that the Senate Banking Committee is actively negotiating with its Democratic counterparts in pursuit of a bipartisan approach to digital asset market legislation.
“Chairman Scott and the Senate Banking Committee have made strong progress,” said spokesperson Jeff Naft, emphasizing the ongoing efforts to create a robust regulatory framework that would provide clarity for the crypto industry and position the US as a leader in the digital asset space.
The delay comes at a time when the committee has produced multiple draft versions of the bill. However, with Congress preparing to return from its holiday break, the immediate focus will shift to funding the federal government, as the current funding bill is set to expire on January 30.
The negotiations had intensified over the past week, with Republicans from the Banking Committee collaborating with Senate Democrats to find a workable compromise.
Democrats have advocated for additional time in discussions, reflecting concerns about various issues, including financial stability, market integrity, and ethical considerations.
In particular, the ethics concerns have been linked to President Donald TRUMP and his family’s crypto-related business dealings, which have reportedly increased their wealth.
Regulators Intensify Oversight Of Digital Assets
Despite the legislative stall, federal regulators are continuing to engage with the cryptocurrency sector. The Securities and Exchange Commission (SEC) has issued multiple staff statements and convened roundtable discussions to explore how existing securities laws apply within the crypto market.
In parallel, the Commodity Futures Trading Commission (CFTC) has begun allowing licensed institutions to engage in spot crypto trading and recently granted no-action relief to specific prediction market operators regarding data requirements.
Additionally, the Federal Deposit Insurance Corporation (FDIC) is set to take significant steps towards implementing the country’s stablecoin bill, or most commonly known as the GENIUS Act.
The FDIC board is expected to review a proposed rule that will outline approval requirements for banks issuing payment stablecoins through their subsidiaries, opening the proposal for public commentary and discussion.
Travis Hill, the FDIC chair nominee, who may be confirmed by the Senate as soon as this week, highlighted that the FDIC is are already working on establishing prudential standards for stablecoin issuers under FDIC supervision. These standards WOULD cover areas such as capital requirements, reserves, and risk management.
Featured image from DALL-E, chart from TradingView.com
