US crypto regulation postponed until 2026 as Senate prioritizes budget battle over market rules

Source: Yellow Original Title: U.S. Crypto Regulation Delayed Until 2026 as Senate Prioritizes Budget Fight Over Market Rules

Original Link: The U.S. Senate Banking Committee has postponed any review of the highly anticipated cryptocurrency market structure bill until next year, slowing the momentum of legislation aimed at clarifying how federal regulators oversee digital asset markets.

What happened

A committee spokesman said Monday that Chair Tim Scott and Democratic negotiators have achieved “significant progress,” but discussions are ongoing, according to Bloomberg.

The setback was widely expected, but still frustrates crypto industry advocates who were hoping for at least a preliminary review before the end of the year.

With Congress returning in January to face a government funding deadline on January 30, lawmakers will have limited capacity to resume crypto oversight before the upcoming 2026 midterm election cycle further constrains the legislative calendar.

According to the committee, Scott has insisted that the bill must be bipartisan, and negotiations will continue with the goal of holding a review in early 2026.

The legislation seeks to formally split oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission, giving the CFTC clearer authority over spot crypto markets, while detailing when digital assets may fall under securities regulations.

The Senate Banking Committee, which oversees the SEC, has drafted several versions of the proposal, while the Senate Agriculture Committee, which supervises the CFTC, has issued a discussion draft and will need its own review before the bill can progress.

Democratic lawmakers have raised concerns over financial stability, market risks, and ethical issues, the latter intensified by the growing involvement in crypto businesses that, according to reports, have generated significant profits.

Why it matters

Even without new legislation, both regulators have begun to shift their stance toward the industry.

The SEC has issued staff bulletins and organized public roundtables to analyze how securities laws should be applied to various crypto activities.

Meanwhile, the CFTC has taken steps to expand institutional access to spot crypto trading and recently granted exemptions to certain prediction market platforms.

The delay pushes comprehensive crypto regulation even further into the future, leaving the industry to operate under a fragmented guidance while negotiations continue until 2026.