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Reading: Political Deadlock Stalls US Cryptocurrency Bill as Key Obstacles Remain
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COINTURK NEWS > Cryptocurrency Law > Political Deadlock Stalls US Cryptocurrency Bill as Key Obstacles Remain
Cryptocurrency Law

Political Deadlock Stalls US Cryptocurrency Bill as Key Obstacles Remain

In Brief

  • US crypto regulation efforts remain stalled by deep partisan disagreements over key industry issues.

  • Bipartisan consensus looks unlikely, casting major doubt on passage of a new crypto bill in 2026.

  • Political divisions and ethical controversies continue to cloud the sector's regulatory outlook.

Ömer Ergin
Ömer Ergin 3 months ago
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Ongoing uncertainty surrounding cryptocurrency regulation, combined with several structural challenges, has continued to impact markets. Last year, debates around GENUS triggered significant declines, illustrating the sensitive relationship between crypto price movements and policy signals. Efforts to introduce legal clarity to the US crypto sector began in 2025, but progress has been hampered. Two major roadblocks threaten to derail the legislation’s passage not only in 2026, as originally hoped, but potentially for good.

Contents
Regulatory Hurdles Block Path to Crypto LegislationMidterm Elections Cast Shadow on Crypto Law Prospects

Regulatory Hurdles Block Path to Crypto Legislation

There was widespread anticipation that Washington would approve a comprehensive cryptocurrency regulatory framework by 2026. However, the process has ground to a halt due to two central issues. The first centers on the treatment of stablecoin yields; pressure from the banking sector has pushed Democrats to resist measures that might legitimize or enable them. The second involves concerns over former President Donald Trump’s personal interests in the crypto sphere, which some warn could blur the lines between political influence and financial gain. Congressional debates throughout the past year have reflected deep-seated anxieties on this front, with Democrats expressing particular concern about preventing potential conflicts of interest.

Ron Hammond, head of policy and advocacy at Wintermute, estimates there is only a 25% chance that the crypto bill will be passed in the current year, underscoring the measure’s precarious prospects.

A legislative proposal meant to clarify the regulatory turf between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) could eliminate many uncertainties in the industry. The draft would, among other things, allow certain altcoins classified as securities to transition to being regulated as commodities. Yet unless the two parties can reconcile their differences—especially on stablecoins and ethical concerns over Trump’s relationships—the process remains firmly blocked. Without bipartisan backing, achieving a Senate majority is out of reach, and the legislative window is likely to shut when Congress recesses ahead of the third-quarter election break.

Midterm Elections Cast Shadow on Crypto Law Prospects

Failure to enact a crypto law this year would further complicate prospects after the upcoming midterms, where Trump is widely expected to lose momentum. History suggests that controversial proposals like these struggle to advance in polarized conditions. Recent votes have already seen six Republican members break ranks to support a Canadian bill opposed by Trump; with crypto being far more contentious, the challenge for GOP lawmakers is even greater. Splintered over issues as basic as customs tariffs, Republicans may find meaningful cooperation on crypto nearly impossible.

Trump’s dealings in the cryptocurrency world are estimated to have generated at least $1.4 billion in profits, including activities connected to World Liberty Financial. These figures likely understate the true gains, taking into account indirect benefits such as campaign funding and other financial channels. This situation has led Democrats to increasingly question whether future presidents or secretaries might use their public roles to profit from, or inadvertently promote, the cryptocurrency industry.

Wintermute’s Hammond highlighted the strength of these concerns:

“Rightly or wrongly, there is a widespread narrative about the president and his family’s participation in the crypto industry, feeding perceptions of corruption in this administration—or of potential ties across the broader crypto sector.

As the election draws nearer, we are seeing this theme used ever more prominently in campaign advertisements.”

You can follow our news on Telegram, Facebook & Coinmarketcap & X
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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Ömer Ergin 12 February, 2026 - 9:29 pm 12 February, 2026 - 9:29 pm
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