Progress on comprehensive U.S. cryptocurrency market structure legislation has reportedly stalled due to political gridlock. Industry observers cite a government shutdown, partisan debates, and the looming midterm elections as key obstacles, with one executive stating the effort is effectively “on hold.”
Efforts to pass a U.S. digital asset market structure bill have slowed since the House advanced legislation last summer. Observers in Washington point to a prolonged government shutdown, partisan divides, and debates over stablecoin regulations as causes for the delay.
Eight months before the November midterm elections, one commodities-focused bill has cleared a Senate committee. A separate securities-focused bill in the Senate Banking Committee has not been addressed after a planned meeting was cancelled in January.
Rebecca Liao, CEO of Saga and a former campaign adviser, stated the legislation was effectively “on hold.” She contrasted this with earlier optimism, “when crypto markets were doing very well… there was a lot more urgency.”
Liao linked the stalled momentum to cooled markets and the political calendar. “It is not easy to get any sort of legislation through this Congress… And it’s an election year,” she noted.
A debate over allowing yield payments to stablecoin holders has further complicated the Senate process. This issue prompted multiple reported meetings at the White House between officials and industry representatives.
Cody Carbone of the Digital Chamber acknowledged some optimism for a resolution from figures like Coinbase CEO Brian Armstrong. However, he said specific timelines beyond a hopeful April goal mentioned by Senator Bernie Moreno were lacking.
The Senate is also scheduled for a state work period in August, shortening the legislative calendar. This leaves only a few months of potential work before the general election in November.
