Lede
The Senate Banking Committee is reportedly shifting its primary legislative focus toward President Donald Trump’s affordability agenda, a move that is expected to delay the progress of crypto market structure legislation by several weeks. According to reports citing individuals familiar with the matter, the committee is likely to switch its attention away from the pending crypto bill in order to facilitate the implementation of recent executive orders. This shift represents a potential new delay for the Senate’s consideration of the cryptocurrency framework, which has already seen significant hurdles in its path toward becoming law.
Previously, two key committees had already made the decision to postpone scheduled markups for the legislation. These markups were intended to be a critical step in refining the bill and garnering the necessary bipartisan support for its passage. However, with the Senate Banking Committee now focusing on the administration’s broader economic goals, the timeline for the crypto bill’s advancement has become increasingly uncertain. The decision to move away from the crypto bill at this time suggests that the legislative window for digital asset regulation is narrowing as other domestic priorities take center stage.
Context
The redirection of the Senate’s focus follows a major executive action by President Trump, who recently signed an order prohibiting Wall Street investors from buying single-family homes. This initiative is part of a concerted effort by the Trump administration to push down housing costs and address the soaring cost of living before the US midterm election in November. Although the administration had made crypto policy a priority during its first year, the immediate economic pressures facing voters have shifted the political landscape. Voters are currently placing affordability at the top of their concerns as the election cycle intensifies.
Politically, Republicans are under pressure to secure tangible policy wins to take into the November midterms. This drive is influenced by current polling data and Polymarket odds, which suggest that Democrats have a nearly 80% chance of winning a majority in the House of Representatives. Such a shift in the balance of power could significantly impact the President’s ability to move his agenda forward in the future. By focusing on affordability measures now, the administration and its allies in the Senate are attempting to address the most pressing issues identified by the electorate ahead of the upcoming vote.
Impact
The impact of these legislative delays is further complicated by a significant loss of industry backing for the current crypto bill. Coinbase, which serves as a major lobbyist for the digital asset sector, has pulled its support for the legislation. This withdrawal of support is rooted in deep-seated disagreements over specific provisions within the bill, most notably those involving the regulation of stablecoins and the oversight of decentralized platforms. The lack of consensus between lawmakers and a primary industry stakeholder like Coinbase creates additional friction for a bill that was already struggling to maintain momentum.
The combination of committee postponements and industry dissent suggests that the bill may require substantial revisions before it can move forward again. With two key committees having already postponed their markups, the legislative process for the crypto market structure bill has slowed considerably. The loss of a major supporter like Coinbase at the same time the Senate is shifting its focus to the affordability agenda suggests that the crypto industry may face a prolonged period of regulatory uncertainty as the government prioritizes broader economic concerns and the looming midterm elections.
Outlook
As the US midterm election in November nears, the outlook for crypto-specific legislation remains tied to the broader political and economic climate. The Senate is expected to remain focused on the affordability agenda, particularly the implementation of the executive order regarding single-family homes, for the foreseeable future. With the cost of living identified as a top concern for voters, the administration’s focus on economic relief is likely to supersede complex regulatory projects like the crypto market structure bill. The push for policy wins before November will continue to dominate the legislative calendar.
The potential for a shift in House control also looms large over the future of crypto policy. If the nearly 80% chance of a Democratic majority in the House materializes, the Trump administration’s prioritized crypto initiatives could face new challenges or be derailed entirely. For the remainder of the year, the progress of digital asset regulation will likely depend on how effectively the current administration can address affordability concerns while navigating a difficult electoral map. Until the midterm elections are concluded, the crypto bill is expected to remain a secondary priority behind the immediate economic needs of the electorate.
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