Congress kicks the can to 2026 — what the delay in US crypto market-structure talks means for markets and investors

Delay announced and the market signal: patience, not clarity

Lawmakers on Capitol Hill have agreed to move major hearings on a US crypto market-structure bill into early 2026. The pause is short by legislative standards, but long enough to change how firms, funds and traders plan for the months ahead. The negotiations involve Senate Banking Committee leaders, the House Financial Services Committee, big exchanges, custodians and the Securities and Exchange Commission. Markets treated the news as a mixed signal: relief that a rushed, one-size-fits-all bill may be avoided, but renewed uncertainty about when a clear federal framework will land.

For traders and listed-product managers, the practical effect is immediate: rules that could reshape who may list tokens, which platforms can operate, and how custody and reporting work are now more likely to be decided in the teeth of the 2026 midterm political calendar. That raises the stakes and the odds of compromise language that blends strict oversight with carve-outs for industry players.

From acrimony to calendar: how talks reached early-2026

Negotiations started as a push to make crypto trading safer and more like traditional markets. Lawmakers wanted to tackle fragmentation, make sure exchanges are properly supervised, and address custody rules after high-profile collapses in previous years. But senators hit friction points — chiefly whether tokens should be treated as securities, how much power the SEC should keep, and how to limit harm to decentralized finance projects.

Those fights produced several draft texts and intense lobbying from exchanges, custody firms, traders and crypto-friendly lawmakers. The compromise to delay hearings reflects two realities: drafters want to avoid producing a bill that courts or regulators can easily challenge, and both parties see value in timing big decisions around the 2026 political calendar, where votes and committee compositions could shift. So the new roadmap centers on formal hearings and markups in early 2026, followed by more detailed legislative jogging through the year.

What lawmakers are actually hashing out: registration, custody and market rules

The proposals under discussion fall into four buckets. First, market-structure rules aimed at exchanges: ideas include mandatory registration for any venue that lists or matches trades in tokens, rules for best execution and transparency, and new thresholds for market-making behavior. Second, a registration carve-out or test for token listings — some lawmakers want a clear standard so exchanges know which tokens can be listed without triggering securities law. Third, custody and qualified custodian standards that would make custodians legally responsible for safekeeping and segregation of client assets. Fourth, expanded reporting and surveillance requirements to catch manipulation and insider trading in token markets.

Contentious clauses include a proposed safe harbor for certain decentralized protocols, liability shields for custodians that meet strict standards, and a clause that would explicitly preserve the SEC’s views on what constitutes a security. Industry groups want clear listing tests and operational leeway; consumer advocates want strong custody duties and oversight. Those goals clash where decentralization and liability protection meet.

How exchanges, tokens and liquidity providers might react

If Congress creates a clear registration path for exchanges and listing tests for tokens, expect a two-speed market. Large, well-capitalized exchanges with formal custody lines and compliance teams would gain an advantage, because they can meet registration and reporting demands. Smaller venues and offshore platforms may face pressure to either upgrade or lose US-facing flows. That consolidation would likely improve price discovery for major tokens but could narrow the number of venues willing to list smaller, newer assets.

Market-makers and high-frequency shops would need to adapt to any new transparency and best-execution rules. Increased reporting and surveillance tend to reduce profitable informational leaks and rapid arbitrage, which could widen spreads and reduce ephemeral liquidity in the near term. Token prices that trade primarily on thin liquidity venues could see higher volatility until market-makers adjust or capital rebalances to registered platforms.

Products that depend on clear custody chains — exchange-traded funds, institutional baskets, and some custody-backed lending programs — would benefit if custodial rules create legal certainty. Conversely, tokens whose ownership or settlement depends on novel custody arrangements or smart-contract-only custody could be disadvantaged unless lawmakers carve out explicit treatment for them.

Where the SEC fits in — friction or cooperation ahead?

The SEC has signaled it wants to protect investor safeguards and keep its authority over securities. Congress can pass a statute that narrows ambiguity, but the SEC can still press enforcement on conduct it sees as fraudulent. Expect tense moments where legislation sets a floor and regulators set enforcement policy as a ceiling. The agency could adopt guidance or new rulemaking to fill gaps, or it could litigate to defend its interpretation of securities law.

That dynamic means any final law will be judged not only by its text but by how agencies implement it. Firms should expect both statutory compliance work and parallel regulatory engagement with the SEC and other agencies.

Practical moves for investors and asset managers

Investors should treat the delay as an extension of policy risk, not its removal. For tradable tokens and token-adjacent stocks, that translates into three sensible steps: position size discipline, liquidity assessment, and scenario planning. Reduce outsized bets in assets that trade on thin venues or rely on novel custody. Reassess liquidity risk — if spreads widen under stricter reporting, short-term exit costs will rise. For funds, consider stress-testing portfolios under a scenario where major venues consolidate and fewer tokens meet exchange listing tests.

Hedging ideas include using non-token correlated instruments to offset market moves, and favoring counterparties with clear custody and compliance pedigrees. Keep a watch list of custodians and exchanges that publish roadmaps for compliance; those firms are likelier to benefit from a tougher regulatory environment.

Politics, likely amendments and the calendar into 2026

The bill’s fate now hinges on the early-2026 hearings and the midterm cycle. Expect heavy lobbying, especially from large exchange operators and major custody firms pushing for safe harbors and clear listing tests. Amendments that narrow the SEC’s interpretive reach or that explicitly protect decentralized protocols could be proposed, but their success will depend on committee math and broader political deals.

Key dates to watch: the hearing schedule in early 2026, any committee markups in spring, and floor timing tied to the 2026 campaign calendar. Investors should price in both a reasonable chance of compromise legislation and a significant chance that key disputes push meaningful rules into 2027.

Sources

• cointelegraph.com
• cointelegraph.com
• cointelegraph.com
• cointelegraph.com
• cointelegraph.com
• cointelegraph.com