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US crypto regulation remains slow, leaving companies in uncertainty and investors without clear protections. Lawmakers are working on a framework, but progress is limited, and regulators rely on enforcement rather than guidance. With crypto now embedded in finance through stablecoins, DeFi, and tokenised assets, the need for clear rules is pressing. As reported by The Block, TD Cowen projects legislation may not pass until 2027, with implementation extending to 2029.
The crypto market structure bill is designed to bring clarity by defining regulatory responsibilities and reducing legal uncertainty. It sets out to classify digital assets, assign authority between agencies, and provide clearer rules for companies and investors. This bill addresses the broader market, in contrast to the GENIUS Act, which only addressed stablecoins. The question of whether tokens should be regarded as commodities or securities, which has sparked years of legal conflicts, is one of the main issues it tackles. In order to lessen overlapping oversight, it also seeks to draw more distinct lines between the SEC and CFTC.
According to TD Cowen’s Washington Research Group, political factors, such as Democrats’ desire to retake the House in 2026, may cause the crypto market structure bill’s adoption to be delayed until 2027. Agencies would need time to create regulations, hire personnel, and enforce compliance, so implementation might take a further two years.
Beyond policy discussions, there are political obstacles to crypto legislation in the United States. Although there is bipartisan interest in Congress, consensus is brittle since every clause is negotiable. Sixty votes are needed for a Senate filibuster, which is a challenging requirement in a divisive setting. Republican support is uneven, as some favour limited oversight, while Democrats can slow progress by leveraging the need for their votes.
The 2026 midterm elections could influence the pace of crypto legislation. Democrats may choose to delay action, aiming to shape the rules under a future administration. Election outcomes have the potential to shift priorities quickly, altering the direction of crypto policy depending on which party holds power.
Conflict-of-interest regulations continue to be a barrier to the advancement of crypto law. Democrats are advocating for stringent regulations to stop high-ranking officials and their families from making money from digital assets. The topic is at the centre of the discussion because of Donald Trump’s engagement in cryptocurrency endeavours, especially those connected to DeFi and memecoins that have allegedly produced substantial revenue. Without political concessions, it is unlikely that regulations directly impacting him will be enforced immediately.
A proposed compromise on conflict-of-interest rules involves delaying enforcement by three years, which could avoid directly affecting Trump. However, Democrats are likely to oppose the plan, arguing that such a delay undermines the effectiveness of the rules.
Momentum on crypto legislation slowed after the House passed its version in 2024, as the Senate became the bottleneck with committee reviews and vote calculations delaying progress. The 2028 presidential election adds further uncertainty, since a change in administration could reshape enforcement priorities and influence how regulatory agencies approach oversight.
The crypto market structure bill has a 50–60 percent probability of passing, according to experts, which is more indicative of political unpredictability than a lack of interest. Industry pressure and bipartisan compromise could increase the chances. Investors must make decisions without knowing the regulatory framework that will eventually apply, which increases volatility and complicates long-term planning.
Global delays in US cryptocurrency legislation contrast with quicker advancements in areas with established frameworks, such as the EU. Long-term inaction might erode American leadership in the industry. A settlement in 2026, passage in 2027, and implementation by 2029 would be the ideal course of events. The worst-case scenario is further delays, uncertainty, and congestion.
