US Senate's Crypto Regulation Efforts Face Challenges Ahead of 2026 Midterms

The US Senate's push for unified regulation of cryptocurrencies is gaining momentum, but progress remains slow due to disagreements between committees and industry stakeholders.

A crypto market-structure bill advanced by the Senate Agriculture Committee on January 29 has highlighted the challenges in achieving a cohesive regulatory framework. The bill, which gives the Commodity Futures Trading Commission more authority to regulate spot cryptocurrency markets, was passed on a strict party-line vote.

However, Democrats on the committee protested that important safeguards and outstanding issues were being ignored, sparking concerns about political profiteering and decentralized finance.

The White House has called for a deal quickly, with Treasury Secretary Scott Bessent urging Congress to enact the CLARITY Act by spring 2026. A change in power following the elections could cause the political coalition to fall apart, making it crucial to achieve consensus before then.