Senate Kicks Crypto Regulation Can to 2026: Uncertainty Lingers

The​‍​‌‍​‍‌​‍​‌‍​‍‌ US Senate Banking Committee has delayed the markup of the bipartisan cryptocurrency market structure legislation until early 2026, thus closing the possibility of any progress before the end of the 2025 session. Tim Scott, the chairman of the committee, acknowledged the postponement, saying that more bipartisan talks are needed to produce a strong bill. A representative of the chairman mentioned "strong progress" in the talks, but at the same time reminded that the main goal is to come up with a "strong bipartisan product" which will facilitate regulation and make America the "crypto capital of the world."

The bill on the table is aiming at a clear division of the regulatory oversight between the SEC and the CFTC, with the latter probably being in charge of the spot crypto markets. There is a wide range of topics covered by the bill from exchange rules and stablecoins regulations to strengthened consumers’ rights and anti-illicit finance measures. The House has already approved its version of the bill (FIT21, also known as the CLARITY Act) in 2024 on a bipartisan basis, and now the Senate is working on the coordination between the Banking and Agriculture committees to advance its version.

This delay extends the time of regulatory uncertainty for the crypto industry which still has to deal with issues such as the classification of assets, broker-dealer rules, and enforcement actions. It may slow down US innovation and expansion in the sector of the country due to the upcoming 2026 midterm elections which might make the passing of the bill even more difficult. The talks will continue after the holidays and it is expected that the committee will hold markups and floor voting in the new ​‍​‌‍​‍‌​‍​‌‍​‍‌year.