US Crypto Market Structure Bill Could Be Delayed Until 2027: Report

A U.S. crypto market structure bill aimed at establishing a regulatory framework for digital assets may be delayed until 2027, with final implementation potentially occurring in 2029. Analysts at TD Cowen attribute this potential delay to political challenges and unresolved conflict-of-interest provisions in the legislation.

Democratic lawmakers are seeking to include restrictions that would bar senior government officials and their families—including President Donald Trump—from holding or operating crypto-related interests. Such provisions, however, face resistance from Republicans, who view them as politically motivated. Jaret Seiberg of TD Cowen noted that these provisions could become a 'nonstarter' for Trump unless their effective date is pushed several years into the future.

The political leverage held by Democrats also plays a role in the delay. With control of the House of Representatives potentially at stake in the 2026 midterms, Democrats may prefer to slow down the passage of the bill. This approach allows them to retain influence over the final rules if they regain control of the chamber.

Why Did This Happen?

The key issue driving the delay is the conflict-of-interest language in the bill. Democrats argue that such restrictions are necessary to ensure ethical oversight in the crypto sector. They are particularly concerned about President Trump's extensive ties to the industry, including his involvement in DeFi projects and his stake in a Bitcoin mining firm. According to TD Cowen, these concerns could significantly impact the bill's timeline.

On the other hand, Republicans, particularly those aligned with Trump, oppose the immediate enforcement of these ethics provisions. They argue that such restrictions could be used to target political opponents. TD Cowen suggested that one possible compromise is to delay enforcement of these provisions until 2029. This would ensure they do not apply to Trump during his current term.

What Are Analysts Watching Next?

The political dynamics in Congress mean that the timeline for the bill's passage is highly uncertain. While the House passed a version of the market structure bill in 2024, progress in the Senate has slowed. Overcoming a Senate filibuster requires bipartisan support, and the need for 60 votes gives Democrats significant leverage to delay passage.

TD Cowen estimates a 50%–60% chance that the bill will become law in 2026. However, political negotiations and the need for compromise mean that a 2027 passage is also likely. If the bill is delayed until 2027, implementation could be pushed to 2029 to allow for extensive rulemaking and preparation.

What Does This Mean for the Crypto Industry?

The delay in regulatory clarity creates uncertainty for the $1.7 trillion crypto industry. Digital asset firms must continue operating under a patchwork of existing rules from the SEC and CFTC. Institutional investors are hesitant to enter the market without clear regulatory guidelines. The extended timeline also means that the industry will face prolonged uncertainty before a comprehensive framework is in place.

Some analysts argue that a 2027 passage with a 2029 implementation could actually benefit the industry. It allows companies more time to prepare for new regulations and reduces the risk of disruptive changes. However, others warn that the delay could hurt the U.S.'s competitiveness in the global crypto market, where other jurisdictions are moving forward with regulatory frameworks.