The US Senate Banking Committee has officially abandoned plans to vote on the digital asset market structure bill in December. Chairman Tim Scott confirmed the debate is pushed to early 2026. The attempt to pass a legislative framework before the recess failed, leaving crypto companies and investors stranded in a zone of regulatory uncertainty.
The Shadow of Trump’s Business
Despite spokespersons claiming significant progress, consensus remained out of reach. Democrats refused to fast-track the bill, pushing strict demands regarding financial stability.
Donald Trump’s commercial activity became the primary roadblock. The opposition sees a direct conflict of interest in the fact that the President’s family has generated billions of dollars from crypto projects. Democrats fear the new regulations could be tailored to fit the specific business interests of the political leadership and are demanding additional guarantees on market ethics.
Timing Against the Market
The Congressional calendar for Q1 plays against the industry. Upon returning from the break, lawmakers will be forced to throw their weight behind preventing a government shutdown, as current funding expires on Jan. 30. The risk of a halt in operations overshadows any niche initiatives.
Once budget issues are resolved, the Senate will pivot to active preparation for the midterm elections. During this cycle, complex technical bills are traditionally shelved, narrowing the reform window to just a few weeks in February and March.
Regulators Go It Alone
While the legislative branch stalls, federal agencies are changing the landscape independently. The SEC and CFTC have softened their aggressive rhetoric and moved toward targeted liberalization of the rules.
The CFTC has already opened access to spot operations for licensed institutions and simplified data requirements for prediction markets. The SEC has also shifted tactics, initiating a series of closed-door meetings to discuss applying securities laws to the nuances of DeFi and trading.
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