Catenaa, Tuesday, February 24, 2026- TD Cowen says that filling Democratic vacancies at the Securities and Exchange Commission and Commodity Futures Trading Commission could break the deadlock on US crypto market structure legislation.
The main obstacle is not the bill’s framework but a political dispute over conflict-of-interest rules affecting President Donald Trump and his family’s crypto holdings.
Democrats are pushing for restrictions on financial transactions involving digital assets by senior officials, including Trump, whose ventures such as World Liberty Financial and a 20% stake in American Bitcoin have generated an estimated $1.4 billion.
Republicans oppose measures requiring divestment, creating a legislative stalemate even as industry groups negotiate broader crypto regulations.
TD Cowen suggests a compromise where Trump fills the empty Democratic seats at the SEC and CFTC, allowing Democrats to defer conflict-of-interest provisions until after the next presidential inauguration.
This arrangement would enable a future Democratic president to immediately control both agencies, influencing crypto rulemakings in 2029.
Currently, both commissions lack Democratic members, with four CFTC and two SEC vacancies.
Trump has indicated willingness to nominate Democratic commissioners, a move analysts say could unlock progress on the CLARITY Act and other legislation governing digital assets.
Stablecoin yield treatment remains another contentious issue, and the bill’s path forward remains politically complex, though sources estimate a 60% chance of passage this year.
