Crypto Market Structure Bill Likely Delayed Until After Midterms, Says TD Cowen

Partisan gridlock and disputes over crypto ownership restrictions for public officials could push the long-awaited crypto regulatory framework into 2026, according to analysts from TD Cowen’s Washington Research Group.

Lawmakers Struggle to Find Common Ground on Crypto Regulation

The long-debated cryptocurrency market structure bill may not see progress until after the midterm elections, analysts from TD Cowen’s Washington Research Group, led by Jaret Seiberg, said in a note on Monday.

“We are not suggesting there is no path forward for action in the next 12 months,” the group wrote. “Our point is that there are more reasons for senators to delay action than to move quickly.”

Attempts to finalize the text of the bill before a markup hearing have faltered. A Democratic spokesperson for Sen. Ruben Gallego emphasized that Democrats had shared substantive language, but Republicans “leaked our proposal and pretend to be surprised that our parties have policy differences.”

New statement from Sen. Gallego (D-Ariz.) spox Jacques Petit on this: https://t.co/ZxAMpzjyra pic.twitter.com/kZvD3eSWm3

— Brendan Pedersen (@BrendanPedersen) October 9, 2025

The delay reflects growing tensions between Republicans and Democrats over how to divide jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as how to classify certain digital assets.

Republican lawmakers on the Senate Banking Committee are pushing a proposal that defines “ancillary assets” — cryptocurrencies that would not be treated as securities. Meanwhile, Senate Democrats recently introduced a six-page counterproposal aimed at curbing illicit activities through decentralized finance (DeFi).

The Democratic draft, however, drew sharp criticism from both Senate Republicans and industry leaders, who warned that its provisions would be “unworkable” and stifle innovation.

A Senate Banking Committee spokesperson confirmed that Democrats have “not committed to dates to debate the bill,” making it unlikely that any markup will happen soon.

Despite the setbacks, Seiberg noted that procedural disputes are not the real barrier.

“We do not see process objections as a real obstacle to a deal. They indicate that senators are not interested in moving quickly,” he explained.

With limited legislative days left before campaigning intensifies, Cowen analysts believe “market structure may need to wait until after the midterm election.”

The Real Obstacle: Crypto Ownership Restrictions

According to TD Cowen, the biggest sticking point is a Democratic proposal to ban senior government officials — including the president and their families — from owning crypto firms.

Democrats have grown increasingly vocal about President Trump’s ties to the crypto industry, citing his family’s involvement in ventures like World Liberty Financial, a DeFi and stablecoin project, and the TRUMP and MELANIA memecoins. Bloomberg recently estimated that the Trump family has earned over $620 million from these ventures.

Such conflicts of interest, analysts say, have further complicated bipartisan negotiations and increased the likelihood of postponement.

Analysts suggest that any major progress on the crypto market structure framework is now unlikely before mid-2026, as lawmakers shift focus to election campaigns.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.