U.S. Crypto Legislation Delayed Amid Political Challenges

The Block reports, citing TD Cowen, that U.S. cryptocurrency market legislation may face delays until 2029 due to political disputes over conflict interest clauses.

This delay may impact cryptocurrency market stability and investor strategies, as legislative uncertainty often fuels market volatility, particularly affecting Bitcoin and Ethereum investments.

U.S. Crypto Legislation Faces 2029 Delay Amid Political Turmoil

TD Cowen’s analysis suggests that the US crypto legislative process may not conclude until at least 2027, with full implementation possibly delayed to 2029. The political climate is a primary factor causing these delays.

Democratic reluctance to push forward due to conflict-of-interest provisions involving prominent political figures such as President Trump has stalled legislative progress. As Jaret Seiberg, Managing Director at TD Cowen, articulated, “The political challenges surrounding the bill are significant, particularly with the Democratic reluctance ahead of the 2026 midterms.”

Reports indicate market reactions to the legislation delay have already led to substantial outflows from crypto investment products. The uncertainty has particularly affected Bitcoin and Ethereum, causing notable price volatility.

Bitcoin and Ethereum Weather Market Volatility from Regulatory Uncertainty

Did you know? The CLARITY Act has faced similar delays in the past, impacting market trends with ~$952 million outflows from investment products in late 2025.

Bitcoin (BTC) currently trades at $93,342.59, with a market cap of $1.86 trillion and dominance at 58.35%. Over 24 hours, its price increased by 0.84%, but it shows a 23.31% decline over the past 90 days. Volume has surged by 40.34% to $47.01 billion, as per CoinMarketCap data.

Coincu research highlights that further delays in crypto market legislation might lead to extended financial uncertainty. This could result in decreased institutional participation, especially within US borders, potentially affecting technological innovation and market stability.