Industry experts warn that delayed crypto regulation could trigger renewed enforcement actions and political backlash during the 2026 midterms. The current legislative window represents a rare alignment of bipartisan support and executive branch openness.
Pending bills like the GENIUS Act address stablecoins and market structure, but Senate delays risk letting enforcement agencies shape policy through litigation. Regulatory clarity is particularly crucial for institutional adoption of Bitcoin ETFs and custody solutions.
Failure to pass framework legislation this year might push comprehensive regulation to 2027-2028, creating prolonged market uncertainty. This timeline coincides with rapid CBDC development abroad, potentially weakening US competitiveness in financial innovation.