Crypto Market Framework Faces Multi-Year Delay, Analysts Warn

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US legislation designed to establish clear regulations for digital asset markets is likely to face significant delays. Analysts at TD Cowen suggest approval could be postponed until 2027, with rules taking effect as late as 2029.

Although a crypto market structure bill could technically pass this year, the political landscape in Congress makes setbacks more probable. TD Cowen’s Washington Research Group, under managing director Jaret Seiberg, indicates Democrats may feel little urgency to act quickly, especially if they anticipate regaining the House in the 2026 elections.

“Election outcomes are always uncertain, which is why Democrats may cut a deal,” Seiberg noted. “That could happen quickly, as staff have been working on the technical language for months.”

However, Seiberg added, “Time favors enactment as the problems disappear if the bill passes in 2027 and takes effect in 2029. Crypto would need to accept that the presidential election could impact the final rules, and Democrats would need to accept that the conflict provision will not apply to Trump.”

A key point of contention will likely be conflict-of-interest rules. Democrats are expected to insist on measures preventing senior officials and their families—potentially including former President Donald Trump—from owning crypto businesses. Seiberg stated such terms would be unacceptable to Trump unless their start date were delayed for years.