Senate Pushes US Crypto Market Law Into 2026

(MENAFN- The Arabian Post)

The U. S. Senate has deferred action on a highly anticipated crypto market structure bill, with the Senate Banking Committee confirming that it will not hold a markup vote on the legislation this year and plans to resume deliberations in early 2026. The decision prolongs regulatory uncertainty for digital asset markets and leaves unresolved how federal authorities will oversee cryptocurrency trading platforms, brokers, issuers and decentralised finance protocols.

Legislators and industry stakeholders had been watching closely as Congress approached the final weeks of the year, with hopes that a bipartisan compromise could be advanced before the holiday recess. Instead, lawmakers acknowledged they have run out of time to advance the market structure package and will reconvene next year to continue negotiations.

Senate Banking Committee Chair Tim Scott, a Republican, has underscored that bipartisan support is essential for the legislation's success. Discussions with Democratic counterparts have been ongoing for weeks, focusing on jurisdictional questions and substantive regulatory priorities, but key disagreements have persisted. Officials familiar with the talks indicate that the absence of a markup before Congress adjourns means the effort will stretch into the new session.

At the heart of the stalled bill is a fundamental policy dilemma: how to split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The Senate bill, which builds on earlier proposals such as the Digital Asset Market Clarity Act, would clarify which regulator has primary authority over spot crypto markets and define obligations for trading venues, intermediaries and token issuers. Without clear legislative direction, firms have had to navigate a patchwork of enforcement actions and judicial interpretations that many say have hindered investment and innovation.

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Market participants have voiced growing frustration with the delay. Crypto exchanges, institutional investors and industry associations had advocated for a definitive regulatory framework that could bring greater legal certainty and attract more capital to the sector. The prospect of comprehensive legislation had lifted sentiment at various points this year, but the latest postponement has dampened expectations for near-term reform.

The delay also highlights broader political pressures facing Capitol Hill. Lawmakers must balance an array of competing priorities, including government funding deadlines and fiscal negotiations that are expected to dominate early next year. With the current budget authority set to expire in late January, congressional attention may initially focus on averting a federal shutdown before turning back to complex regulatory overhauls such as crypto market structure.

The Senate Agriculture Committee, which has jurisdiction over derivatives markets and the Commodity Futures Trading Commission, has likewise not scheduled its own markup for digital asset legislation. That parallel delay reduces the chances of coordinated progress on a comprehensive regulatory package when Congress returns. Analysts suggest that reconciling differences between the banking and agriculture panels will be a critical test for legislative champions of crypto reform.

While the legislative path has been slowed, federal agencies have continued to engage with the digital asset ecosystem. The SEC has held discussions and issued staff guidance on how existing securities laws apply to crypto products, and the CFTC has pursued enforcement actions targeting fraud and manipulation in digital commodity markets. These actions offer a degree of regulatory oversight in the absence of new statutory rules, but industry advocates argue they do not substitute for a clear, unified legislative framework.

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The cryptocurrency market itself has reacted to the news of the delay. Major tokens, including Bitcoin and Ethereum, experienced downward pressure on trading floors as investors reassessed the timeline for regulatory clarity. Traders cited the legislative uncertainty among other macroeconomic factors in driving short-term price volatility across major digital assets.

Opposition to swift legislative action has stemmed from both ideological and technical concerns. Some lawmakers argue that hastily drafted rules could stifle innovation or create regulatory burdens that favour larger incumbents over smaller entrants. Others have called for more robust consumer protections and clearer definitions of digital asset categories before codifying oversight structures. These debates have contributed to the extended negotiation process.

Arabian Post – Crypto News Network

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