Sen. Moreno’s Crypto Warning: "No Deal Beats a Bad Deal" as Legislation Talks Hit Wall

Washington's crypto regulation push just slammed into a brick wall—and one senator is holding the line.

The Stalemate Strategy

Senator Moreno isn't blinking. As bipartisan talks on a landmark digital asset framework grind to a halt, her message cuts through the D.C. noise: walking away beats signing a disaster. This isn't just political posturing; it's a calculated bet that a regulatory vacuum is preferable to rules that strangle innovation.

Why the Impasse Matters

The industry holds its breath. Major exchanges and DeFi projects need clarity, but not at any cost. A rushed, poorly drafted bill could cement legacy finance's advantages—think of it as a regulatory moat for banks, built with bureaucratic concrete. The fear? Lawmakers, many of whom still confuse a blockchain with a bike chain, might craft rules that protect incumbents instead of fostering the next financial revolution.

The Bullish Case for a Pause

Paradoxically, this deadlock might be the market's best friend. Forced regulation often misfires. The 2024-2025 bull run proved crypto thrives on organic growth, not political decrees. A delay allows more real-world adoption to demonstrate how decentralized finance actually works—beyond the lobbyists' PowerPoint slides and the usual fear-mongering about volatility (as if the traditional stock market is a paragon of stability).

The Path Forward

Expect more hearings, more drafts, and more tense negotiations. The goalposts haven't moved, but the players are digging in. The industry's task is clear: keep building, keep educating, and prove that the future of finance doesn't need a poorly negotiated peace treaty with the past. Sometimes, the best deal is the one you don't make—especially when the alternative is getting fleeced by politicians playing three-dimensional chess with a rulebook they haven't read.

Progress Slows on Crypto Oversight Bill Despite Earlier Bipartisan Momentum

Earlier this year, Lawmakers to pass a stablecoin law marking a rare moment of bipartisan agreement.

However, the broader market structure bill, intended to decide which federal agency has jurisdiction over different types of crypto assets and how consumer protections should be applied, has been difficult to finalize.

Both the House and Senate have their own versions, and lawmakers will need to resolve these differences before the bill can MOVE toward.

The House passed its version, the Digital Asset Market Clarity Act, in July. The bill gives the Commodity Futures Trading Commission primary authority over digital commodities and preserves the Securities and Exchange Commission’s power over fundraising and token issuances.

GENIUS Act, Anti-CBDC Act, and CLARITY Act pass crucial procedural vote 215-211 in Congress after Trump's decisive Oval Office intervention rescues stalled crypto agenda.#GeniusAct #Trumphttps://t.co/Lm2tCBbimp

The Senate Banking Committee, where Moreno sits, has its own draft that introduces the term “ancillary assets” in an effort to define which tokens should not be treated as securities.

That committee must also coordinate with the Senate Agriculture Committee, which released a separate draft last month expanding CFTC authority. Both proposals WOULD still require markup hearings, revisions, and a formal vote before advancing.

There was brief Optimism last week when Senate Banking Committee Chair Tim Scott told attendees at a “Crypto Christmas” event that there was a realistic path to hold a markup hearing on December 17 or 18.

But other members are less confident. Sen. Mark Warner said on Monday that completing a markup before the holidays would be difficult, in part because lawmakers are still waiting for the WHITE House’s language on quorum and ethics provisions.

Industry lawyers have also raised concerns about unresolved issues in the bill, including how stablecoin yield products should be treated and how decentralized finance should be regulated.

Congress Faces Tightening Window as Political Friction Slows U.S. Crypto Rulemaking Efforts

Political complications continue to cloud the process. Several Democrats have voiced concerns about President Donald Trump’s financial ties to crypto ventures, which Bloomberg estimated at $620 million in July.

Democratic lawmakers have launched a new probe into former President Donald Trump’s growing involvement in the crypto industry.#Crypto #Regulationhttps://t.co/Wli5QqlNdu

His family’s involvement in a stablecoin project and a mining firm has fueled questions about potential conflicts of interest. The debate has added another LAYER of tension as Congress attempts to write rules that would shape the industry for years.

The negotiations are unfolding at a time when the U.S. is trying to put a more permanent structure around the digital-asset market.

Earlier this year, the GENIUS Act became law, marking the country’s first attempt at a federal framework for stablecoins. The law requires stablecoin issuers to hold full reserves, undergo monthly audits, and follow strict anti-money-laundering rules.

A key point in the legislation is the clarification that stablecoins are not to be treated as securities. With that clarification in place, agencies now have until July 2026 to finish writing the rules that will put the law into practice.

@RepBryanSteil presses regulators to speed up GENIUS Act rulemaking before the July 2026 deadline amid concerns over potential delays#GENIUSAct #CryptoRegulationhttps://t.co/KF4aPx4der

Officials from the FDIC, OCC, Federal Reserve, and NCUA told members of Congress last week that they have already begun the work and expect to roll out the new rules in two phases starting next year.

Even with that, lawmakers say time is running short. Sen. Thom Tillis warned that Congress has only a small window to move forward. He said that if discussions continue into February, the election season could bring everything to a stop.