US Crypto Legislation Could Be Delayed Until 2027—Is Donald Trump to Blame?
- Why Is US Crypto Legislation Stuck in Political Limbo?
- Could the 2024 Elections Derail Crypto Regulation Entirely?
- Trump vs. Democrats: Who’s Really Holding Up Crypto Progress?
- What’s Next for Crypto Investors Amid the Chaos?
- FAQs: US Crypto Legislation Delay
The long-awaited US crypto legislation, initially slated for 2026, now faces potential delays until 2027—or even 2029 for full implementation. Political gridlock, conflicting interests, and the looming 2024 elections are key culprits. Analysts like Jaret Seiberg of TD Cowen suggest the delay might ironically improve the bill’s chances, but Democrats’ demands for conflict-of-interest rules targeting Trump add fuel to the fire. Meanwhile, Bitcoin’s price wobbles as investors wonder: Is it too late to buy BTC?
Why Is US Crypto Legislation Stuck in Political Limbo?
Since taking office, the Trump administration has championed turning the US into the "global crypto capital" he promised during his campaign. Yet, key initiatives like the Bitcoin strategic reserve—which can’t even retain seized BTC as pledged—are floundering. Now, a bespoke crypto market legislation initially due in 2026 risks slipping to 2027, with enforcement pushed to 2029. TD Cowen’s lead financial policy analyst, Jaret Seiberg, cites "persistent political roadblocks" as the cause. The real kicker? A proposed conflict-of-interest rule that could bar US officials from holding crypto—a move seen as targeting Trump, who’s exempt due to his presidential status.
Could the 2024 Elections Derail Crypto Regulation Entirely?
With midterms looming in November, Republicans risk losing ground, while Democrats show little urgency to fast-track crypto laws—especially if it means letting Trump off the hook. Seiberg notes a 2027 delay might actuallythe bill’s passage: "Time favors adoption. Push it to 2027, enforce by 2029, and suddenly today’s problems vanish." But Democrats are unlikely to accept a 3-year grace period for conflict-of-interest rules if the entire bill is postponed. Meanwhile, bitcoin investors are left guessing: Should they buy the dip or brace for more delays?
Trump vs. Democrats: Who’s Really Holding Up Crypto Progress?
The sticking point? A clause requiring officials to divest crypto holdings—a rule TRUMP would skirt. Seiberg’s compromise: "Apply the conflict rule three years post-adoption." That way, Trump’s term would end before it takes effect. But Democrats aren’t biting. "They’ll reject any deal that also delays the broader bill," Seiberg admits. Meanwhile, the BTCC research team highlights that regulatory uncertainty is keeping institutional investors sidelined, with BTC trading volume down 12% month-over-month.
What’s Next for Crypto Investors Amid the Chaos?
While politicians bicker, the market moves. Bitcoin’s volatility has spiked 18% since December, per CoinMarketCap, as traders weigh the odds of a 2027 delay. "In my experience," notes a BTCC analyst, "prolonged uncertainty hurts adoption more than harsh rules." Case in point: Crypto startups are already relocating to Singapore and Switzerland. Still, some see a silver lining—Seiberg argues later legislation could be "more comprehensive," avoiding rushed mistakes like Europe’s MiCA framework.
FAQs: US Crypto Legislation Delay
Why is the crypto bill delayed until 2027?
Political conflicts, midterm elections, and disagreements over conflict-of-interest rules for officials (including Trump) are primary causes, per TD Cowen analysis.
How will this delay affect Bitcoin’s price?
Short-term volatility is likely, but historically, clear regulations (even if delayed) boost long-term institutional adoption. Track real-time data on TradingView.
Can Trump still influence crypto laws if the bill passes post-2024?
Yes—if re-elected, his administration WOULD oversee the 2027-2029 implementation phase, shaping enforcement priorities.
