US Crypto Firms Face Prolonged Compliance Limbo as Market Structure Bill Slips
A key US legislative effort to regulate the cryptocurrency market is facing delays that could push the passage of a bill to structure the crypto market until 2027, with full implementation possibly beyond 2029.
TD Cowen analysts warn that political dynamics in Congress, including concerns about conflicts of interest, are slowing progress, leaving crypto firms in regulatory uncertainty.
BTC's price climbs back above $90,000 on the daily chart. Source: BTCUSD on Tradingview
Political Obstacles Delay Crypto Regulation
The crypto market structure bill, which aims to provide a clear regulatory framework for digital assets in the US, was expected to go ahead this year. However, TD Cowen’s Washington Research Group, led by managing director Jaret Seiberg, says the timeline for the bill’s approval is now uncertain.
Political figures tied to the 2026 midterm elections have reduced the urgency for Democrats to push the bill quickly, especially if they expect to regain control of the House of Representatives.
Seiberg notes that the Democratic Party’s insistence on strict conflict-of-interest laws, particularly those that would prevent high-ranking government officials and their families from running or owning cryptocurrency businesses, is a major sticking point.
This provision directly affects President Donald Trump and his family, who have reported significant investments related to crypto, including trading in decentralized finance projects (DeFi) and bitcoin mining companies.
The proposed solution is to delay the enforcement of these conflict of interest laws for three years after the enactment of this bill. This compromise would push the effective date beyond the next presidential term, potentially avoiding an immediate impact on the Trump family’s crypto interests.
Impact on the Crypto Industry and Market Regulation
The delayed timeline means that crypto firms will face ongoing regulatory uncertainty during a critical period of market growth. This bill, known as the CLARITY Act, aims to separate oversight responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC), clarifying the regulation of different digital assets.
The law also includes provisions that would exempt certain cryptocurrencies from certain registration requirements, aiming to strike a balance between investor protection and innovation.
However, the way forward remains complex. Senate committees are scheduled to revisit the bill later this year, but overcoming procedural hurdles, such as filibusters, will require bipartisan support, which remains uncertain.
Investors are advised to be prepared for a long period of unclear regulatory conditions, which can influence when companies choose to invest and innovate.
Preparing for the Shifting Regulatory Landscape
Despite the delay, the crypto market remains active, the price of Bitcoin hovers close to $ 94,000 from the beginning of January 2026. However, the absence of clear rules is a risk of reducing institutional acquisition and long-term infrastructure development in the US.
Meanwhile, the international regulatory environment continues to evolve, with states such as the European Union and Singapore developing their own frameworks.
Industry groups such as the Blockchain Association and Coin Center continue to engage with lawmakers, advocating for effective regulations that support growth and protect consumers.
The upcoming congressional hearing on January 15 is seen as a critical time to clarify the law’s intent, but the general trajectory suggests that US crypto firms will face extended uncertainty before the broader rules take effect.
Cover image from ChatGPT, BTCUSD chart from Tradingview
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