Crypto Bill Stalls? 2026 Midterms in Chaos! 🚨

by

The Crypto Market Structure Bill is about to hit the ultimate roadblock: 2026 midterms. Because nothing says “I care” like dragging legislation until the last minute. 🐍

Reacting to the latest postponement of the bill’s markup to January, Scott Johnsson, the crypto VC who’s probably plotting in a dark room, warned,

“Increasingly think Dems have every incentive to draw this process out until the last moment (maybe late Q1) and then drop the veil.”

According to him, Senate Dems could intentionally drag negotiations to show “good-faith” to crypto lobbyists while secretly plotting against banks. 🤯

He added that if the delay extends beyond midterms, it could put the sector’s main policy goal in an “unenviable position,” as Dems might renege if pressed hard. 🤷♀️

“On the flip side, if this gets punted past midterms, industry is in the unenviable position of (1) knowing that Senate Dems are at least 5:1 against market structure.”

Crypto bill’s key contentious

On the 17th of December, some crypto leaders, including Coinbase execs, held a bipartisan meeting with the Senate Banking Committee. Because nothing says “teamwork” like a meeting where everyone’s secretly plotting. 🕵️♂️

The meeting’s agenda was to keep track of the bill’s momentum after the delayed December markup. According to journalist Eleanor Terrett, the meeting struck a “cautiously optimistic” tone. Because nothing says “optimistic” like a room full of people who’ve already lost their minds. 😂

So far, the key contentious issues on the bill include DeFi oversight, stablecoin rewards, and ethics related to Trump’s crypto family drama. Because what’s a bill without a little family drama? 🤷♀️

Traditional players like Citadel Securities are pushing for DeFi regulation ahead of the tokenization boom. In contrast, the crypto industry seeks exemption for DeFi platforms. Because why follow rules when you can just ignore them? 🤪

Stablecoin rewards have also faced strong opposition from traditional banks since August. In fact, the banking lobby has been pushing for the blocking of the stablecoin interest loophole via the market structure bill. Because nothing says “fairness” like a monopoly. 💸

Will the bill survive the 2026 elections?

The banking lobby now plans to spend over $100 million to elect pro-bank candidates, aiming to counter the influence of crypto donations. Because nothing says “democracy” like buying politicians. 🤑

This would set the stage for a likely messy fight between the sectors ahead of the 2026 midterms, noted James Seyffart, a Bloomberg ETF analyst. 🤯

“The 2026 meta – Citadel and the Banks fight back against crypto.”

That said, there are two versions of the market structure bill: the CLARITY Act, advanced from the House and Senate’s draft, known as the RFIA (Responsible Financial Innovation Act). Because “responsible” is just a word they use to sound good. 🤡

The RFIA is the one awaiting markup before heading to the Senate floor vote. Afterward, it will be merged or must be approved by the House before Trump can sign it into law. Because nothing says “democracy” like a president signing a bill they didn’t write. 🤷♂️

Meanwhile, there was a 77% chance it would become law before 2027, despite concerns about the midterm election. More like a 77% chance of everyone losing their minds. 🤯

Final Thoughts 

  • A VC executive projected that Dems could stall the crypto bill to buy time or bolt out at the last minute. Because why not? 🕵️♀️
  • However, the odds of the bill’s passage in 2026 remained high at 77% despite election fears. More like 77% chance of chaos. 🤯

Read More

2025-12-18 17:27