Senate delays crypto market-structure markup to early 2026, prolonging SEC vs CFTC uncertainty
The U.S. Senate Banking Committee has postponed markup of bipartisan crypto market-structure legislation from 2025 to early 2026, citing limited time before the year-end recess and ongoing negotiations between lawmakers. The delay defers decisions on how to allocate oversight between the SEC and CFTC and how to define rules for spot markets, exchanges, brokers and token issuers. The Senate Agriculture Committee also has not scheduled related markup, reducing the likelihood of comprehensive federal crypto legislation in 2025. Markets reacted negatively after the announcement, with spot crypto selling pressure and notable declines in major coins. Industry participants now face extended regulatory uncertainty that could slow U.S. crypto innovation, business decisions and listings. Traders should monitor committee schedules, draft text when released, jurisdictional language on SEC vs CFTC oversight, and liquidity flows — all of which will materially affect exchange business models, listing strategy and spot-market structure.
Bearish
The delay increases regulatory uncertainty, a factor that typically weighs on crypto prices. Traders reacted with spot selling after the announcement, indicating immediate negative sentiment and liquidity outflows. Short-term impact: elevated volatility and downward pressure as market participants reduce exposure pending clarity on SEC vs CFTC jurisdiction and specific rules for spot markets, exchanges and token listings. Medium-to-long-term impact: if the delay pushes meaningful legislation past the 2026 midterms or produces weaker protections for market participants, it could slow institutional listings and liquidity expansion (bearish). Conversely, a future bill that clearly designates CFTC oversight for spot markets could be bullish, but that outcome is uncertain—so the current net effect is bearish until regulatory clarity emerges. Key trade signals to watch: committee votes and timelines, text language on jurisdiction, ETF and exchange listing guidance, and large fund flows.