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Crypto Market Bill Faces 2027 Delay Risk From Midterms, Says TD Cowen

#Investment bank TD Cowen warned Monday that U.S. digital asset legislation under Senate consideration could face delays until 2027 due to upcoming midterm elections. The analysis suggests Senate Democrats may withhold support as November 2026 elections approach.

The market structure bill passed the House as the #CLARITYAct in July but operates under the Responsible Financial Innovation Act name in the Senate. TD Cowen's Washington Research Group projects potential passage in 2027 with final implementation possibly arriving in 2029.

Senate Democrats could stall the legislation until after midterms determine which party controls Congress, currently held by Republicans. The investment bank noted election uncertainty might push lawmakers toward deal-making despite political calculations.

A bipartisan Senate Agriculture Committee draft released in November included #conflict safeguards targeting government officials and President Donald Trump's family. The provisions would restrict cryptocurrency holdings and industry involvement for covered individuals.

House and Senate Democrats have raised concerns about #Trump's connections to blockchain companies as Congress reviews the bill. Potential conflicts include World Liberty Financial involvement, the Changpeng Zhao pardon, American Bitcoin connections, and the $TRUMP meme coin.

TD Cowen stated that time favors passage if the bill moves forward in 2027 and takes effect in 2029. The analysis noted crypto advocates would need to accept presidential election impacts on final rules while Democrats would need to accept Trump-related provisions expiring.

The Responsible Financial Innovation Act awaits #markup sessions in both the Senate Banking Committee and Senate Agriculture Committee before full chamber consideration. Reports indicate the Banking Committee scheduled markup work for the second week of January.