US Senate Delays Crypto Market Structure Hearings Until 2026

The Senate Banking Committee announced on Monday that it has postponed legislative hearings on crypto market structure. Originally expected this week, the discussions have been pushed to early 2026, a decision confirmed by committee chairman Tim Scott through his spokesperson.

Long-Awaited Bill Targets Regulatory Clarity

The proposed legislation is a critical issue for the US crypto industry, as it is intended to clearly define how regulatory authority will be divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The bill designates the CFTC as the primary regulator of spot crypto markets, a clarification the industry has sought for years.

Bipartisan Consensus Cited as Reason for Delay

Chairman Scott said the postponement reflects his desire to secure strong bipartisan support. According to his spokesperson, he has remained engaged in good-faith discussions with patience and consistency. The stated objective remains to position the United States as the global capital of cryptocurrencies, though critics argue the delay undermines that ambition.

Industry Voices Express Frustration

Crypto investor and analyst Paul Barron said the market structure bill collapsed during the Senate markup phase, casting doubt on whether it will even pass in early 2026. His comments echo broader frustration among industry participants who had hoped for regulatory certainty by 2025.

Election Cycle and Budget Pressures Complicate Timeline

The political calendar poses additional obstacles, with US midterm elections scheduled for 2026, when all House seats and 33 Senate seats will be contested. Historically, such election cycles slow bipartisan legislation as lawmakers avoid controversial topics. At the same time, Congress faces urgent budget negotiations, with federal funding set to expire on January 30, pushing crypto legislation down the priority list.

Markets React Sharply to Regulatory Uncertainty

The announcement triggered an immediate market reaction, with total crypto market capitalization falling by about $150 billion within hours. Bitcoin slid from nearly $90,000 to around $85,000, a decline of roughly 3.6%, reflecting investor anxiety over continued regulatory uncertainty.

Prolonged Uncertainty Risks Driving Innovation Elsewhere

While US policymakers aim to establish the country as a global crypto leader, continued delays could have the opposite effect. Ongoing uncertainty may push companies and capital toward jurisdictions with clearer regulatory frameworks, leaving Washington increasingly constrained by time.