U.S. lawmakers have delayed progress on a long-awaited crypto market structure bill, pushing any formal legislative action into next year and dealing a setback to an industry seeking clearer federal oversight.
The Senate Banking Committee confirmed it will not hold a markup hearing on market structure legislation before the end of the year, deferring debate on how U.S. regulators should supervise digital asset markets. While the delay was widely anticipated, it extinguishes hopes that Congress could deliver even incremental momentum toward a comprehensive crypto framework before year-end.
Committee officials said negotiations between Republicans and Democrats are ongoing, with bipartisan agreement remaining the stated objective. However, lawmakers now face a crowded legislative calendar in early 2026, including the need to address government funding before a January deadline and the looming constraints of the midterm election cycle, which historically compress the window for complex regulatory reforms.
The proposed market structure bill aims to clarify the division of responsibility between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Under current drafts, the CFTC would assume a primary role in regulating spot crypto markets, while securities laws would be more clearly delineated for digital assets that resemble traditional financial instruments. Both the Senate Banking Committee, which oversees the SEC, and the Senate Agriculture Committee, which oversees the CFTC, would need to advance legislation independently before a final bill could move forward.
Democratic lawmakers have raised concerns around financial stability, market integrity and ethics, particularly in light of the expanding crypto-related business interests linked to President Donald Trump and his family. These issues have emerged as key sticking points in negotiations, complicating efforts to reach bipartisan consensus.
Despite the legislative delay, regulatory momentum has continued outside Congress. The SEC has stepped up engagement with the industry through staff guidance and public roundtables exploring how existing securities laws apply to crypto activities. The CFTC has also taken a more accommodative stance, moving to permit licensed institutions to participate in spot crypto trading and granting limited regulatory relief to certain market operators.
While these steps offer some near-term clarity, the absence of legislation leaves the industry reliant on regulator-by-regulator interpretation, reinforcing uncertainty around compliance, enforcement and long-term investment decisions.
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The legislative delay is mildly negative for near-term crypto sentiment, as it extends regulatory uncertainty around market structure, custody and exchange oversight in the U.S. While recent steps by the SEC and CFTC provide incremental clarity, the absence of a statutory framework may limit institutional risk-taking and cap upside momentum for Bitcoin and major tokens. That said, the market impact is likely to be contained, with price action continuing to be driven more by macro liquidity conditions, ETF flows and U.S
