Cryptocurrency regulation delayed again: US bill postponed until 2027 for approval, effective implementation not until 2029

The advancement of the US Crypto Market Structure Act has once again fallen into uncertainty. A recent report from investment bank TD Cowen indicates that legislation aimed at establishing clear rules for the cryptocurrency market may be delayed until 2027, with actual implementation possibly pushed back to 2029. This means that the regulatory certainty the industry has been expecting could be postponed by another three years.

Political Game as the Main Cause of Delay

According to TD Cowen’s analysis, the core reason for the bill’s delay lies in the political battles in the US Congress, rather than technical or policy obstacles.

Democratic Party’s Strategic Considerations

The Democratic Party currently lacks the motivation to accelerate the legislative process, mainly due to two reasons:

• Hoping to regain control of the House in the 2026 midterm elections, advancing crypto legislation at this time would not align with political interests
• Election outcomes are uncertain, and Democrats may only consider reaching an agreement after the results are clear

Technical Readiness is in Place

It is worth noting that the technical aspect is not a bottleneck. According to the report, staff have been researching the technical provisions of the bill for several months, which means that once the political environment permits, the process could proceed relatively quickly.

Timeline Overview

Market Impact Assessment

This delay signal has several implications for the crypto market:

Regulatory Certainty Delay

The industry has been expecting a clear regulatory framework to address current gray areas. A delay until 2029 means this uncertainty could persist for several more years, potentially affecting the pace of institutional capital inflows.

Political Risk Factors

TD Cowen’s report also mentions that the presidential election could influence the final rules, and the crypto industry needs to accept this political uncertainty. This indicates that even if the bill passes, specific regulations may still be adjusted according to political shifts.

Extended Industry Adaptation Period

Conversely, this delay also provides the industry with more time to adapt and prepare. Companies and projects can make more thorough preparations based on the specific provisions of the bill.

Summary

The delay of the Crypto Market Structure Act has become a high-probability event, reflecting the complex political environment faced by US crypto regulation. Although technical readiness is in place, political battles may push the final implementation to 2029. The industry should prepare for the long term and rationally recognize that the final form of the regulatory framework will still be influenced by political factors. In this process, continuing to promote technological innovation and compliance is more practical than overly expecting a specific regulatory timeline.