The chief policy officer at crypto firm Paradigm warned this week that a comprehensive overhaul of US crypto laws could take years of agency work to complete.
Justin Slaughter, Paradigm’s vice president of regulatory affairs, said the law itself will begin the long process of writing dozens of detailed rules that organizations must draft, publish for comment, and finalize.
Lawmakers Unveil Draft Bill
On January 13, 2026, the US Senate passed a bill that aims to define which tokens are securities or assets and to establish who regulates crypto trading.
The draft will give the Commodity Futures Trading Commission jurisdiction over many markets and includes measures aimed at limiting the way stablecoins are used to pay interest, among other provisions.
Suspension of Rules Can Extend for Years
Slaughter pointed out that the bill would require about 45 separate, detailed rules to be written by regulators before its provisions could take full effect.
That is a heavy burden. He compared the potential timeline to rules written after the Dodd-Frank law, which took about three to eight years to finalize for many parts of the financial system.
Okay, so here are the essentials I have.
First, this bill is still missing many things. There is absolutely nothing about ethics (which will be a big draw for people) and nothing is required for a quorum of Commissions. Dems won’t sign bill to…
– Justin Slaughter (@JBSDC) January 14, 2026
That comparison is important because it shows how slow work can be even when lawmakers act quickly. Agencies must write proposals, take public comments, review drafts, and then publish final regulations. Each step can be delayed by legal challenges, staffing restrictions, or political shifts.
Industry Groups Prepare for Phase Shift
Exchanges, banks, and stablecoin companies have begun writing compliance programs. Some industry players say they prefer to tip the bill to the CFTC for local oversight, believing it could ease certain market practices.
Others worry that long rulemaking windows will leave uncertainty for months, if not years, while firms try to follow the changing direction.
What Can Slow Things Down
Among the potential issues: disputes over who enforces which laws, disputes over how severance payments fall under the old laws, and political volatility.
Slaughter warned that parts of the legislation could take two presidential terms before everything is resolved. That will leave the sector operating under a combination of new guidelines and legacy rules for a long time.
Lawyers and Administrators Enter the Conference
Regulatory officials at the SEC and CFTC have already joined forces on crypto issues. The SEC has signed off on plans to update long-term securities rules to better deal with tokenized instruments.
At the same time, the CFTC is preparing market structure and final guidance consistent with its expanding role. These agency actions will constitute the final form of technical regulation required by any law, if any, that becomes mandatory.
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