US Crypto Firms Face Prolonged Compliance Limbo as Market Structure Bill Slips

A key U.S. legislative effort to regulate the cryptocurrency market is facing delays that could push the passage of the crypto market structure bill to 2027, with full implementation possibly extending to 2029.

Analysts at TD Cowen warn that political dynamics in Congress, including concerns about conflicts of interest, are slowing progress, leaving crypto firms in regulatory uncertainty.

Political Roadblocks Delay Crypto Regulation

The crypto market structure bill, which aims to provide a clear regulatory framework for digital assets in the U.S., had been expected to advance this year. However, TD Cowen’s Washington Research Group, led by managing director Jaret Seiberg, says the bill’s approval timeline is now uncertain.

Political calculations tied to the 2026 midterm elections have reduced the urgency among Democrats to push the bill quickly, especially if they anticipate regaining control of the House of Representatives.

Seiberg notes that the Democratic Party’s insistence on strict conflict-of-interest rules, particularly those that would prevent senior government officials and their families from operating or owning cryptocurrency businesses, is a major sticking point.

This provision directly affects President Donald Trump and his family, who have reported significant crypto-related investments, including ventures in decentralized finance (DeFi) projects and bitcoin mining firms.

The proposed solution is to delay enforcement of these conflict-of-interest rules for three years after the bill’s enactment. This compromise would push the effective date beyond the next presidential term, potentially avoiding immediate impact on the Trump family’s crypto interests.

Impact on the Crypto Industry and Market Oversight

The delayed timeline means crypto firms will face ongoing regulatory uncertainty during a critical period of market growth. The bill, known as the CLARITY Act, aims to divide oversight responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC), clarifying the regulation of different digital assets.

The legislation also includes provisions that could exempt certain cryptocurrencies from specific registration requirements, aiming to strike a balance between investor protection and innovation.

However, the path forward remains complicated. Senate committees are scheduled to revisit the bill later this year, but overcoming procedural hurdles, such as filibusters, will require bipartisan support, which remains uncertain.

Investors are advised to prepare for a protracted period of unclear regulatory conditions, which could influence where companies choose to invest and innovate.

Preparing for a Shifting Regulatory Landscape

Despite the delays, the crypto market remains active, with Bitcoin’s price hovering near $94,000 as of early January 2026. Still, the absence of clear rules risks slowing institutional adoption and long-term infrastructure development in the U.S.

Meanwhile, the international regulatory environment continues to evolve, with regions such as the European Union and Singapore advancing their own frameworks.

Industry groups like the Blockchain Association and Coin Center continue to engage with lawmakers, advocating for practical regulations that support growth and protect consumers.

The upcoming January 15 congressional hearing is seen as a critical moment for clarifying legislative intent, but the overall trajectory suggests that U.S. crypto firms will face extended uncertainty before comprehensive rules take effect.

Cover image from ChatGPT, BTCUSD chart from Tradingview