Catenaa, Thursday, October 16, 2025- Senate negotiations over cryptocurrency regulation are stalling, raising the likelihood that a long-awaited crypto market structure bill may not pass until after the midterm elections.
TD Cowen analysts said partisan disagreements are slowing progress, with Senate Republicans and Democrats offering conflicting proposals.
Republicans seek to clarify which cryptocurrencies are securities and assign oversight between the SEC and CFTC.
Democrats recently proposed stricter DeFi rules and restrictions on senior government officials owning crypto firms, a move complicated by scrutiny of President Donald Trump’s family crypto holdings.
Markups and debates have been delayed, with Democrats emphasizing that bill text must be finalized before a hearing.
Analysts warn limited Senate sessions and election-year campaigning could further postpone legislative action.
Jaret Seiberg of TD Cowen said process objections are not blocking a deal, but the political climate suggests lawmakers are prioritizing midterm campaigns over swift crypto regulation.
The delay underscores ongoing uncertainty for the US crypto industry amid heightened attention on compliance and investor protections.
