US Senate Postpones Crypto Market Structure Bill to Early 2026 Amid Committee Disputes
The US Senate has delayed the passage of the Crypto Market Structure Bill until early 2026, primarily due to unresolved jurisdictional conflicts between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This postponement highlights the persistent challenges in establishing a coherent regulatory framework for crypto assets amid evolving market complexities.
What happened
The Senate Banking Committee has postponed consideration of the Crypto Market Structure Bill to early 2026, citing ongoing disputes over regulatory jurisdiction as the main cause of delay. The core issue revolves around which federal agency—the SEC or the CFTC—should oversee crypto assets and markets. The SEC maintains that most crypto assets qualify as securities and thus fall under its authority, while the CFTC contends that it should regulate derivatives and certain digital assets as commodities.
These jurisdictional conflicts have persisted despite previous legislative efforts, contributing to the failure to pass comprehensive crypto market legislation. The Senate Banking Committee has yet to reach consensus on a regulatory framework that balances investor protection with the need to foster innovation. Public statements by SEC Chair Gary Gensler and CFTC Chair Rostin Behnam confirm the agencies’ competing claims but do not provide concrete proposals to resolve these disputes.
Analysis from sources such as CoinDesk and the Brookings Institution interpret these conflicts as emblematic of broader regulatory challenges posed by decentralized finance (DeFi), which complicates traditional definitions of securities and commodities. Some legal experts suggest that a dual-agency regulatory approach with clearer boundaries could serve as a legislative compromise, but details remain elusive.
Why this matters
The delay in passing the Crypto Market Structure Bill underscores the structural difficulties in regulating a rapidly evolving and inherently complex market. The jurisdictional tension between the SEC and CFTC reflects deeper challenges posed by DeFi protocols, which often blend characteristics of securities and commodities in ways that defy existing regulatory categories.
Without clear regulatory authority, the crypto market faces continued uncertainty that may undermine investor protection and market stability. Analysts argue that this uncertainty could deter institutional participation and slow innovation, as firms hesitate to operate in a fragmented regulatory environment. At the same time, the Senate Banking Committee’s inability to agree on a balanced framework suggests that lawmakers are struggling to reconcile competing priorities: safeguarding investors while enabling technological advancement.
Furthermore, the delay raises questions about the US’s ability to maintain global competitiveness in the crypto sector, especially as other jurisdictions move forward with clearer regulatory frameworks. The unresolved jurisdictional dispute also complicates the integration of federal rules with existing state-level regulations and international standards.
What remains unclear
Despite the confirmed postponement and the identification of jurisdictional disputes as the primary cause, several critical questions remain unanswered. The specific provisions or scope of the delayed Crypto Market Structure Bill have not been publicly disclosed, limiting insight into how lawmakers intend to address the SEC-CFTC divide or the unique challenges posed by DeFi.
Key uncertainties include how the bill will delineate regulatory authority over emerging DeFi protocols that combine features of securities and commodities, and what market structure rules will be enacted to protect investors without stifling innovation. Additionally, there is no official timeline or roadmap detailing how or when the Senate Banking Committee plans to resolve these disputes.
The interaction between the proposed federal framework and existing state-level crypto regulations also remains ambiguous, as does the bill’s alignment with international regulatory standards. Finally, the impact of the delay on market participants, innovation, and overall market dynamics has not been quantified or empirically analyzed in the available sources.
What to watch next
- Progress within the Senate Banking Committee on negotiating jurisdictional boundaries between the SEC and CFTC.
- Any public disclosures or drafts of the Crypto Market Structure Bill that clarify regulatory frameworks, particularly regarding DeFi protocols.
- Statements or proposals from SEC Chair Gary Gensler and CFTC Chair Rostin Behnam outlining concrete jurisdictional compromises.
- Developments in state-level crypto regulation and how they might influence or complicate federal legislative efforts.
- International regulatory moves that could pressure or inform the US approach to crypto market structure.
The postponement of the Crypto Market Structure Bill to early 2026 reflects ongoing tensions between regulatory agencies and the broader challenge of crafting effective oversight for an innovative and complex crypto ecosystem. While the delay provides time for further negotiation, critical questions about jurisdiction, investor protection, and market innovation remain unresolved, leaving the future shape of US crypto regulation uncertain.
Source: https://beincrypto.com/us-senate-delays-crypto-market-structure-bill/. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.