Report: US crypto market structure bill may slip to 2027
Investment bank TD Cowen has reportedly warned that the 2026 U.S. midterm elections could reduce the support needed to advance a digital asset market structure bill currently under consideration in the Senate.
According to reports, TD Cowen’s Washington Research Group said on Monday that the legislation—known as the CLARITY Act when it passed the U.S. House of Representatives in July and referred to in the Senate as the Responsible Financial Innovation Act—was more likely to clear Congress in 2027, with full implementation potentially in 2029. The firm said Senate Democrats may hold back support ahead of elections that could shift the current Republican advantage in Congress, potentially delaying action until after the midterms, when the majority could change. “Election outcomes are always uncertain, which is why Democrats may cut a deal,” the report stated.
A bipartisan draft released by the Senate Agriculture Committee in November included “conflict of interest safeguards” that could bar government officials, U.S. President Donald Trump, and members of his family from holding cryptocurrencies or being directly involved with the industry.
Several House and Senate Democrats have raised concerns about Trump’s connections to the crypto and blockchain sector as Congress weighs the market structure bill. Possible conflicts cited include involvement in the crypto platform World Liberty Financial, the pardoning of former Binance CEO Changpeng Zhao, the crypto mining company American Bitcoin, and Trump’s memecoin, Official Trump (TRUMP).
TD Cowen added: “Time favors enactment as the problems disappear if the bill passes in 2027 and takes effect in 2029. Crypto would need to accept that the presidential election could impact the final rules, and Democrats would need to accept that the conflict provision will not apply to Trump.”
Markup on market structure expected this month
The Responsible Financial Innovation Act is awaiting markups in the Senate Banking Committee and the Senate Agriculture Committee before potential consideration by the full Senate. Reports indicated the Banking Committee was preparing for a markup in the second week of January.
If enacted, the bill is expected to grant the U.S. Commodity Futures Trading Commission expanded authority over digital assets, shifting some regulatory responsibilities from the Securities and Exchange Commission. As of January, both agencies have only Republican commissioners following the departure of the SEC’s Caroline Crenshaw, and Trump has not announced potential nominees for the vacant Democratic seats.
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