The push to create clearer federal rules for the U.S. crypto market is losing momentum, and industry insiders say it could take until 2026 before any major legislation becomes law. This comes even as the White House continues to show support for digital asset innovation.
At the SmartCon conference in New York, several leading crypto lobbying groups said the CLARITY Act — a market structure bill meant to define how digital assets are regulated — is running into setbacks tied to Washington gridlock and competing political priorities. The ongoing government shutdown is making matters worse, slowing down legislative staff and stalling negotiations.
Momentum Slows in Congress
Ji Hun Kim, CEO of the Crypto Council for Innovation, said there is still determination in Congress to advance the bill, but the timeline remains uncertain.
“I think we’ll make a mad dash with the market structure bill, but I’m not sure we’ll get it to the President’s desk this year,” Kim said.
Summer Mersinger of the Blockchain Association and Cody Carbone from The Digital Chamber shared similar expectations. Both argued that while there is bipartisan support for the bill, the reality is that it likely won’t pass in 2025.
Earlier in the year, many in the industry believed the CLARITY Act would move quickly, especially after the GENIUS Act — a stablecoin regulation bill — successfully became law in July. A White House-backed “crypto week” before the summer recess helped boost momentum. But since then, progress has slowed, especially as congressional staff deal with shutdown disruptions and shifting legislative priorities.
Political Clock Is Ticking
Lobbyists at the event also highlighted a broader sense of urgency: the outcome of future elections could shift the regulatory environment again. President Trump cannot run for a third term, and a new administration could bring leadership less favorable to crypto.
Carbone warned that regulations could swing back to a more aggressive enforcement stance, similar to what companies faced under former President Joe Biden’s SEC. “Things could change back to the anti-crypto regulatory agenda,” he said. “It’s essential to get the legislation in.”
Traditional Finance Pushback
The bill is also facing resistance from traditional banking groups. The American Bankers Association and Bank Policy Institute are lobbying to block crypto firms from offering rewards on stablecoin deposits — benefits that could compete directly with bank savings accounts.
Meanwhile, the Senate is drafting its own version of crypto market structure rules, meaning both chambers will eventually need to reconcile differences before a final bill can move forward.
For now, lobbyists say they remain cautiously optimistic — but acknowledge that patience will be required.
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