Crypto Market Structure Bill Faces Uncertain Future Due to Presidential Conflicts

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The crypto industry's highly anticipated market structure bill, which aims to establish a new regulatory framework for most crypto activities in the United States, has encountered significant obstacles. Despite passing votes in two committees, the bill's prospects have diminished considerably. Top crypto lobbyists have privately concluded that the chances of the legislation passing this year are near zero. The primary obstacle is the personal and lucrative crypto ventures of the U.S. President, which Democrats have seized upon as a key point of attack. Recent weeks have seen Democrats in both the House and Senate demand that pending crypto bills include language preventing the President and his immediate family from engaging in crypto ventures while he remains in office. Republicans have rebuffed these efforts, stating that the conversation is more appropriate during broader market structure bill discussions. During a committee markup of the CLARITY Act, Republicans again blocked efforts to include conflict-of-interest language in the legislation. House Financial Services Committee Chair emphasized that the bill is not about the personal finances of any individual but rather about establishing a regulatory framework. The President's crypto dealings, particularly those involving a crypto platform, have been cited as a major reason for the bill's stalling. The platform's frequent announcements of new products during key votes have further complicated the situation. Additionally, the escalating political tensions and the deployment of the U.S. military to quell protests have created an environment where bipartisan support for the bill is increasingly difficult to achieve. The stablecoin bill in the Senate is seen as less contentious and more likely to pass standalone. The White House has expressed commitment to seeing market structure through, but the outlook remains uncertain. The task of regulating crypto markets may fall to the SEC, which has shown a favorable attitude towards the industry under the current administration. However, this regulatory fix is not permanent and could shift with future presidential views. The only viable path forward for market structure legislation appears to be another attempt in 2026, though the looming midterm elections and other obstacles make the future uncertain.