2026 Elections Could Stall Major US Crypto Legislation, Investment Bank Warns
TD Cowen's Washington Research Group warns that the 2026 midterm elections may delay the passage of significant crypto market structure legislation in the US. The CLARITY Act, also known as the Responsible Financial Innovation Act, faces growing political risks as Senate Democrats may withhold support ahead of the elections.
Conflict-of-interest provisions targeting senior officials, including former President Donald Trump, remain a contentious issue. Analysts suggest the bill is now more likely to clear Congress in 2027, with full implementation potentially pushed to 2029.
Uncertain election outcomes could prompt lawmakers to defer key decisions until the political landscape becomes clearer. The delay underscores the challenges of establishing a unified regulatory framework for digital assets amid shifting political priorities.
