Senate Postpones Crypto Legislation Markup to 2026

The U.S. Senate Banking Committee has postponed markup hearings on comprehensive cryptocurrency market structure legislation until early 2026, extending regulatory uncertainty for the digital asset industry amid stalled bipartisan negotiations. The delay, announced on Monday, dashes hopes for progress on the Digital Asset Market Clarity Act, or CLARITY Act, before the end of 2025 and highlights ongoing disputes over how federal regulators should oversee crypto markets.

Lawmakers from both parties have been working toward a bipartisan framework to define the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission in supervising digital assets. The bill seeks to establish clear criteria for classifying tokens as securities or commodities, with the CFTC taking primary responsibility for spot markets and the SEC focusing on assets resembling traditional financial instruments. This division aims to reduce reliance on court rulings and enforcement actions, providing statutory guidance for exchanges, brokers, custody services, and token issuers.

Negotiations faltered due to unresolved jurisdictional conflicts between the Senate Banking Committee,...