Congress Weighs Sweeping Digital Asset Bill Amid Elections, Shutdown Risks
The outlook for comprehensive US crypto regulation in 2026 remains uncertain as lawmakers balance bipartisan negotiations against looming midterm elections and potential government shutdowns. Industry advocates estimate a 50% to 60% chance that Congress can pass a sweeping crypto market structure bill next year, underscoring both progress and persistent risks.
The Senate is working on legislation designed to clarify regulatory authority between federal agencies and define which digital assets fall outside traditional securities laws. Progress has been slowed by delays in committee hearings, though lawmakers signal that early-2026 markups remain possible if negotiations continue constructively.
A key challenge lies in reconciling multiple committee drafts before advancing a unified bill to the full Senate and aligning it with legislation already passed in the House.
Several unresolved issues threaten momentum. Yield-bearing stablecoins remain contentious, with banks warning they could disrupt traditional finance, while crypto advocates argue they foster fair competition. Decentralized finance oversight, including anti-money laundering requirements and agency jurisdiction, also divides lawmakers.
Concerns over political conflicts of interest and leadership gaps at regulatory agencies further complicate talks.Lawmakers face a narrow window before campaign season intensifies. If progress stalls early in the year, passage becomes increasingly unlikely.Despite obstacles, pressure for regulatory clarity in digital assets remains strong, making 2026 a pivotal year for US crypto policy.
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