Regulatory Delays Impact U.S. Cryptocurrency Market Structure

The U.S. Senate Banking Committee has postponed markup hearings on the cryptocurrency market structure legislation until early 2026, disappointing many in the crypto industry who were hoping for progress this year.

According to a statement from a committee spokesperson, Chairman Tim Scott has been engaging in good-faith discussions with Democratic counterparts, aiming for a bipartisan approach that provides clarity for the digital asset sector.

However, the delay raises concerns about regulatory clarity and its potential impact on innovation and investment in the crypto market, with some stakeholders fearing further complications as midterm elections approach in 2026.

The bill, intended to delineate oversight responsibilities for the SEC and CFTC, faces obstacles including political priorities and funding issues. While the delay was anticipated, it still reflects a setback for an industry that had hoped for more substantial regulatory advancements by 2025.

Amid these challenges, some industry advocates, like Blockchain Association Chief Policy Officer Lindsay Fraser, view the delay as a sign of robust bipartisan engagement rather than a loss of momentum, emphasizing the importance of developing a durable framework for the crypto market.