Senate Banking Committee Delays Major Crypto Bill, Extending Regulatory Uncertainty
The Senate Banking Committee has postponed the markup of a high-profile crypto regulation bill after wavering support from lawmakers and industry allies. Disagreements centered on jurisdictional language defining SEC vs CFTC authority, stablecoin oversight, custody rules for digital assets, and investor protections. Sponsors and committee members said mixed feedback from exchanges, crypto firms and consumer groups required further negotiation. The delay reduces the likelihood of a near-term congressional compromise and pushes regulatory clarity further into the calendar, prolonging legal and compliance uncertainty for crypto firms and institutional traders. Traders should expect sustained volatility in major crypto assets as markets price continued regulatory uncertainty. Possible outcomes range from later passage with clearer rules to fragmented or weaker federal guidance if consensus cannot be reached. Primary keywords: crypto regulation, Senate Banking Committee, stablecoin oversight; secondary/semantic keywords: SEC jurisdiction, CFTC, custody rules, legislative delay, market uncertainty.
Bearish
The postponement increases near-term regulatory uncertainty, which typically weighs on crypto asset prices. Traders face extended ambiguity over custody rules, stablecoin oversight and which regulator (SEC or CFTC) will have primary authority—issues central to institutional participation and exchange operations. In the short term, the market is likely to see heightened volatility and risk-off flows as participants price in a longer window of legal and compliance risk. Liquidity may fluctuate as custodians and institutional entrants delay or reassess plans. Over the medium to long term, outcomes are binary: clear, pro-market legislation could be bullish by unlocking institutional capital, while fragmented or weak federal guidance could prolong a constrained environment, keeping prices pressured. Given the current delay and lack of consensus, the immediate effect is bearish for major crypto assets as uncertainty dominates.