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According to a new warning from investment bank TD Cowen, the focus on efforts to create a unified system of digital products in the United States may lose momentum as the 2026 midterm elections approach.
Key points:
- TD Coin has warned that the 2026 midterm elections in the US could delay the passage of a major bill to regulate the cryptocurrency market until 2027.
- Senate Democrats may withhold support before the election.
- The conflict of interest targeting officials, including Donald Trump, remains a source of controversy.
in The memo was published on Monday Washington group research bank said that books cryptocurrency market structuring bill currently debated in Congress is facing political risks when lawmakers begin to prepare for the election cycle.
TD Coin warns that cryptocurrency regulation in the US may be delayed until 2027
The bill, known as the Clarity Act after it was passed by the House in July and called the Responsible Financial Innovation Act in the Senate, now looks likely to pass Congress in 2027 rather than next year.
Full implementation may be delayed until 2029.
TD Cowen analysts believe that Senate Democrats may hesitate to support the bill before the election that could change control of Congress, which is currently leaning toward Republicans.
The results are uncertain, and lawmakers may choose to postpone major elections until after the midterm elections, when power can be more clearly defined.
“The outcome of an election is always uncertain, which is why Democrats will agree,” the bank said, adding that political timing, not the agenda, will determine the bill’s fate.
Two documents released by the Senate Agriculture Committee in November attempted to address one of the most pressing issues: conflicts of interest.
The proposals include safeguards that would prevent government officials, including Donald Trump and members of his family, from owning cryptocurrencies or participating in companies they are responsible for.
The rulings reflect long-standing concerns among Democratic lawmakers about Trump’s connections to cryptocurrency-related projects.
Critics pointed to the links of World Liberty Financial, a cryptocurrency mining company called American Bitcoin, the establishment of Trump’s symbols, and the high-profile pardon of the former head of Binance Changpeng Zhao.
TD Cowen says pushing back the deadline could ease political tensions over the cryptocurrency bill
TD Cowen also suggested that time may be on the side of compromise. If the bill is passed in 2027 and goes into effect in 2029, some of the political issues may be resolved.
In this situation, the cryptocurrency industry must accept that the results of the presidential election can make the final laws, while the Democrats must accept that the opposition of interests will not work for Trump.
Currently, the legislative process is ongoing. The Responsible Financial Innovation Act is awaiting discussion in the Senate Banking Committee and the Senate Agriculture Committee, and reports indicate that the first discussion may take place later this month.
Coinbase’s head of corporate policy said last week that the book cryptocurrency market system rules will take longer to implement than stablecoin rules, but he remains confident that the party will push the bill to the finish line in 2026.
Clarity in foreign policy and the accelerating flow of talent to the United States are creating pressure to improve government policies this year, John D’Agostino told CNBC.
A note The Investment Bank has warned that the 2026 elections could affect major US cryptocurrency regulations appeared for the first time Cryptonews Arabic.
