Crypto market structure bill dreams hit a midterm election speed bump.
Senate Dems might pump the brakes before November 2026 votes, so TD Cowen says 2027 passage looks more likely, with rules kicking in by 2029.
TD Cowen said U.S. crypto market structure legislation could see progress this year, but is more likely to pass in 2027, with final rules potentially taking effect as late as 2029. The note said a key hurdle is debate over conflict-of-interest provisions, with Democrats seeking…
— Wu Blockchain (@WuBlockchain) January 6, 2026
Why Crypto Market Structure Bill Faces Election Drama
Flashback to 2010 Dodd-Frank chaos, where midterms flipped House control and stalled finance reforms for months amid lobbyist wars.
TD Cowen’s Washington team warns Senate Dems could ditch support for the Responsible Financial Innovation Act, aka CLARITY in the House, over conflict worries tied to President Trump and family crypto plays like World Liberty Financial, American Bitcoin mining, and that Official Trump memecoin.
They pardoned CZ from Binance too, stirring the pot. Elections flip power balances, so lawmakers play coy till dust settles.
“Election outcomes stay wild cards, pushing Dems to deal later.”
Trump Ties Slow Crypto Market Structure Bill
Democrats grumble loudest about Trump clan’s crypto fingerprints, from platforms to coins.
Bipartisan drafts slapped in “conflict safeguards” blocking officials and prez kin from holding digital assets or industry gigs.
TD Cowen figures time heals, pass in 2027, enforce 2029, and Trump-era gripes fade. Crypto people swallow presidential tweaks, Dems wave off old conflict clauses.
Senate Banking and Agriculture committees eye markups this month, Banking maybe mid-January. Full Senate next, if, and this is a big if, it survives the circus.
Power Shift Gives CFTC Reins Over SEC
Signed to law, this crypto market structure bill hands the Commodity Futures Trading Commission bigger digital asset muscle, yanking turf from the Securities and Exchange Commission.
Both outfits run Republican-only now, post-SEC’s Caroline Crenshaw exit, Trump’s mum on Dem replacements.
Republicans hold Congress edge today, but midterms loom like a hangover.
Picture regulators as bar brawlers, CFTC gets the brass knuckles for crypto futures and spots, SEC nurses bruises on securities calls.
Crypto cheers clearer rules, but election roulette keeps everyone guessing.
Midterms Could Rescue or Ruin the Bill
Remember the Libra debacle back in 2019? Facebook’s grand plan for a global stablecoin promised to shake up payments worldwide, but then regulators worldwide slammed the brakes hard over money laundering fears and Big Tech overreach.
What started as a 28-company consortium crumbled under US Congress grilling and state-level bans.
The project morphed into the tame Diem by 2020, then Facebook bailed entirely in 2022 after years of delays.
Libra’s corpse shows how election-season jitters mirror those endless oversight hearings, one whiff of political heat, and industry dreams rot on the vine. Classic Washington two-step.
Now, TD Cowen bets delays favor passage, problems vanish over years. So, like it or not, crypto market structure bill hangs on post-vote deals.
Watch January markups, because one wrong punch, and it’s 2027 snoozefest.
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Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: January 9, 2026 • 🕓 Last updated: January 9, 2026
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