US crypto market structure bill may be delayed until 2027: Report

A closely watched US digital asset market structure bill could be pushed back until at least 2027, according to a new analysis that has quickly become a focal point in crypto news and policy circles. Political timing, election dynamics, and conflict-of-interest concerns around President Donald Trump’s crypto ties are emerging as key reasons for the delay, worrying many in the crypto pur community who want faster regulatory clarity for blockchain technology businesses.

Why the bill could slip to 2027

Investment bank TD Cowen’s Washington research team reportedly warned that the 2026 midterm elections may reduce Senate support for the current digital asset market structure package, which is moving forward under different names in each chamber. In the House, the framework is packaged as the CLARITY Act, while in the Senate, it advances as the Responsible Financial Innovation Act. Their note suggests the bill is now more likely to pass in 2027, with full implementation potentially sliding to 2029.

The report argues that Senate Democrats may hesitate to back the legislation before the November 2026 elections, where control of Congress currently favors Republicans, could shift again. Lawmakers might opt to stall or avoid a final vote until they know which party will hold the majority in the next term. TD Cowen added that “time favors enactment” if the bill is delayed past the Trump presidency’s direct influence on its conflict-of-interest provisions.

Conflict-of-interest fears around Trump and crypto

A bipartisan Senate Agriculture Committee draft of the market structure bill, released in November, included explicit “conflict of interest safeguards.” These provisions would aim to prevent senior government officials including the US president and their close family members, from directly holding crypto or being materially involved in digital asset businesses regulated under the new framework. That language was widely read as aimed at Donald Trump, who has cultivated strong ties with the blockchain and digital asset sector.

Several House and Senate Democrats have raised red flags over Trump’s connections to multiple crypto ventures as Congress debates the bill. Concerns include:

• His association with World Liberty Financial is a crypto platform.
• His pardon of former Binance CEO Changpeng “CZ” Zhao, which some lawmakers say may signal undue favoritism toward a major exchange operator.
• Links to American Bitcoin, a mining company.
• The launch of his own memecoin, Official Trump (TRUMP), which is actively traded on-chain.

TD Cowen’s note suggests that, if passage slips to 2027 with rules taking effect in 2029, Democrats may ultimately accept that any conflict-of-interest provisions would not retroactively apply to Trump’s current term, while the crypto industry would need to accept that a future president, not Trump, could still shape the final rulebook.

What the bill would change for crypto regulation

The Responsible Financial Innovation Act still awaits markup in both the Senate Banking Committee and the Senate Agriculture Committee before it can be brought to a full Senate vote. Reports indicate the Banking Committee is preparing to hold a markup in the second week of January, a key procedural step where amendments are debated and the text can be revised.

Substance-wise, the bill would significantly reshape who regulates which parts of the US crypto market. It is expected to grant the Commodity Futures Trading Commission (CFTC) expanded authority over a broad class of digital assets, shifting some jurisdiction away from the Securities and Exchange Commission (SEC). For crypto pur advocates and many blockchain technology entrepreneurs, stronger CFTC oversight is seen as more market-friendly and better aligned with treating tokens as commodities rather than default securities.

As of January, both the SEC and CFTC are composed only of Republican commissioners, following the departure of Democratic SEC Commissioner Caroline Crenshaw. Trump has not yet announced nominees to refill the Democratic seats, leaving open questions about how balanced future rulemaking and enforcement will be during the transition phase.

Why this matters for the crypto pur community

For builders and investors deeply involved in blockchain projects, the potential delay means several more years of operating under a fragmented and often adversarial US regulatory environment. Clear market structure rules would help answer core questions: which tokens are commodities, which are securities, how centralized exchanges and DeFi protocols should be supervised, and what compliance standards apply across spot markets, derivatives, and staking.

Instead, if TD Cowen’s timeline proves accurate, the United States may not see fully implemented, comprehensive digital asset market rules until close to 2029. That could push even more innovation offshore while slowing institutional adoption at home, even as other jurisdictions move ahead with more defined frameworks.

At the same time, the drawn‑out process gives lawmakers more room to refine safeguards around conflicts of interest, consumer protection, and systemic risk. For now, the only certainty is that US crypto policy remains tightly bound to election cycles and political optics, a reality that will keep this story at the center of crypto news and policy debates for years to come.