- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Delays due to political conflicts, midterm elections.
- Bill could impact DeFi, Bitcoin, and ETH regulation.
Senator Tim Scott leads efforts on the Digital Asset Market Structure Clarity Act, facing delays to 2027 due to political conflicts. The bill, affecting assets like Bitcoin and stablecoins, encounters opposition linked to Trump family crypto ventures.
Senator Tim Scott leads efforts on the Digital Asset Market Structure Clarity Act, predicting delays due to Democratic actions, with a new markup planned for January 15, 2026.
The delay of the US crypto bill has substantial implications for market regulation, potentially affecting Bitcoin and Ethereum. Political tensions, especially those involving the Trump family, are key factors.
Senator Tim Scott is the primary advocate for the Clarity Act, yet actions to advance the bill have stalled. He is aiming for a markup in early 2026, despite earlier predictions for 2025. Jaret Seiberg, managing director at TD Cowen’s Washington Research Group, warns of delays possibly extending to 2027 due to political obstacles linked to Trump family ventures. These ventures, like World Liberty Financial and American Bitcoin, contribute to the conflict-of-interest disputes. Patrick Witt, executive director for President Trump’s Council of Advisors for Digital Assets, indicated that from their perspective, the delays have minimal immediate impact.Senator Tim Scott, Chair of the Senate Banking Committee, predicted delays due to Democratic stalling and stated: “I’ve prioritized crypto legislation in Trump’s second term, previously forecasting passage by August or September 2025.”
The delay affects several industry sectors, including Bitcoin and Ethereum, with potential repercussions for stablecoins and DeFi protocols. Institutional investment may be delayed, affecting market confidence. The overall political climate, marked by Democratic opposition, particularly from Representative Maxine Waters, could influence legislative outcomes. The GENIUS Act, implemented to regulate stablecoins, underscores the complexities involved in defining and regulating digital assets.
Long-term regulatory, technological, and financial effects of the Clarity Act will depend on its eventual passage and implementation. Past legislative processes, such as the GENIUS Act, highlight the slow rollout of crypto regulations, which could shape future market behavior. David Sacks met with lawmakers to discuss current challenges, emphasizing the pressing need for clear regulations amidst ongoing market uncertainties.
