U.S. Crypto Regulation Gridlock: Bills May Stall Until 2026

Washington's foot-dragging threatens to derail crypto legislation—again.

Key bills now face a 2026 timeline as regulators scramble to keep pace with decentralized innovation. The delay sparks fresh concerns about America's fading leadership in digital finance.

Meanwhile, Wall Street banks quietly lobby for provisions that would—shockingly—benefit Wall Street banks.

Senator Lummis Pushes for Progress, But Warns of Roadblocks

Speaking at the Bitcoin Policy Institute Summit in Washington, D.C., Senator Lummis acknowledged that the United States remains behind other jurisdictions like Europe and Singapore, both of which have already established regulatory frameworks for digital assets.

“I mean, it’s still—we’re late, aren’t we?” she said during a separate appearance on CNBC’s Squawk Box. “Compared to some countries in the rest of the world, and it’s sorely needed.”

Lummis emphasized the need for stablecoin regulation to be passed this year, stating that the White House is eager to MOVE forward. However, she also noted that the complexities involved, combined with ongoing political disagreements, could delay final approval until early 2026.

“There’s real excitement at the White House to see Congress send them something they can sign, especially around stablecoins,” she said. “But delays are likely.”

Political Friction Slows Bipartisan Momentum

Despite bipartisan interest in advancing crypto-related legislation, the road ahead remains uncertain. The GENIUS Act has already gained support from 18 Democrats alongside Republican lawmakers. But internal friction among Democrats is proving to be a significant obstacle.

Concerns have emerged regarding former President Donald Trump’s personal involvement in the crypto industry, including links to memecoin ventures and his family’s financial firm, World Liberty Financial. Crypto-related campaign donations have added further tension.

These developments have fueled skepticism among Democratic lawmakers, some of whom skipped a recent Senate hearing on crypto policy. Those who attended raised concerns about potential conflicts of interest.

Senator Lummis acknowledged these concerns, saying she wants to avoid passing legislation that Democrats feel excluded from.

“I don’t want to come up with a piece of legislation that the other side of the aisle feels they haven’t had adequate input in,” she stated. “That is going to require me to go out of my way to pursue additional discussions directly with the other side.”

House of Representatives Holds the Next Key Decision

Attention is now turning to the U.S. House of Representatives, which must decide whether to advance the GENIUS Act as a standalone bill or fold it into the broader Digital Asset Market Clarity framework.

President TRUMP has reportedly pushed for the GENIUS Act to move independently, aligning with his broader vision of accelerating stablecoin adoption and digital asset integration into the financial system.

The decision could be pivotal. The global stablecoin market, currently valued at around $256 billion, is projected to reach $2 trillion by 2028—if proper regulations are enacted.

Yet bipartisan agreement is required in both chambers of Congress to turn these proposals into law. Without consensus, even strong White House backing may not be enough.

The White House Is Ready, But Congress Isn’t

While the executive branch appears eager to support crypto legislation, especially stablecoin-focused efforts, the legislative branch is far from aligned. Lummis noted that the White House has already signaled enthusiasm by moving forward with the GENIUS Act.

Still, progress on the CLARITY Act, which aims to define regulatory boundaries for digital asset oversight, remains uncertain. Both bills are seen as essential for providing the regulatory clarity that crypto investors and developers have been calling for.

Stablecoins, in particular, have gained traction as a bridge between traditional finance and blockchain-based systems. But without proper legislation, U.S.-based firms may struggle to compete globally.

What Comes Next?

The fate of crypto regulation in the U.S. now hinges on whether lawmakers can set aside political disagreements and focus on the broader implications for financial innovation. Senator Lummis remains optimistic that with enough dialogue, both sides of the aisle can come together.

“I do believe there’s momentum, but it has to be inclusive,” she said, urging colleagues to prioritize open discussion over political rivalry.

The coming months will be critical. If progress continues to stall, the U.S. risks falling further behind as Europe, Asia, and Latin America implement clear digital asset frameworks.

While crypto markets remain volatile, institutional adoption is growing, and regulation will be key to ensuring stability and investor protection.

For now, 2026 remains a possible target date—but the industry will be watching closely to see if the U.S. Congress can deliver sooner.