TD Cowen: The US crypto market structure bill may be delayed until 2027, with implementation as early as 2029.

A Washington research team at investment bank TD Cowen points out that the market structure bill aimed at clarifying the regulatory framework for the US crypto market, while still having a path to progress this year, is more likely to be delayed until 2027 due to congressional political maneuvering, and formally implemented around 2029. Jaret Seiberg, managing director of the team, stated that Democrats lack the motivation to accelerate legislation before the 2026 midterm elections, especially given the expectation of regaining control of the House of Representatives. Seiberg points out that the main disagreement on the bill centers on the conflict of interest clause, with Democrats potentially pushing for regulations restricting senior government officials and their families' involvement in crypto businesses, including Donald Trump. However, if these clauses take effect immediately, they may struggle to gain Trump's support unless the implementation date is postponed for several years. TD Cowen believes that delaying the implementation of the entire bill along with the conflict of interest clauses could be a compromise. The report states that this market structure bill is considered the next key regulatory milestone after the stablecoin GENIUS Act, but it requires at least 60 votes in the Senate, and the Democrats' timeline maneuvering could further delay the legislative process. (The Block)