Can US Lawmakers Pass Crypto Market Structure by Midterms?

The crypto market structure bill faces an uncertain future in the US Senate as partisan gridlock, unresolved stablecoin debates, and the looming 2026 midterm elections threaten to derail months of legislative work. Industry observers in Washington now say momentum has largely evaporated, leaving the landmark legislation in limbo.

Why Is the Crypto Market Structure Bill Stalled?

The legislation has hit multiple roadblocks since the House of Representatives approved the CLARITY Act last summer and forwarded it to the Senate. A historically long government shutdown, partisan disagreements over ethics, and the contentious debate around stablecoin rewards have collectively slowed the bill's progress through the upper chamber.

As of March 2026, a commodities-focused version of the crypto market structure bill has cleared the Senate Agriculture Committee, establishing a framework for CFTC regulatory authority over digital assets. However, the Senate Banking Committee has not yet taken up the companion securities legislation after cancelling a markup in January, leaving a critical piece of the regulatory puzzle unaddressed.

Rebecca Liao, co-founder and CEO of Web3 and AI protocol Saga and a former adviser to then-President Joe Biden during his 2020 campaign, told reporters last week that the legislation is effectively on hold. She challenged Ohio Senator Bernie Moreno's claim in February that Congress could pass market structure legislation "hopefully by April," arguing the timeline lacks sufficient support.

Now that the markets have cooled significantly, and even people within crypto are saying 'we don't know, honestly, if the Trump family ended up being a good thing for crypto or not,' a lot of the wind has been taken out of the sails.

— Rebecca Liao, CEO of Saga

Stablecoin Yield Deadlock Complicates Progress

The stablecoin yield debate has become one of the most divisive obstacles facing the bill. A reported three meetings at the White House between Trump administration officials and representatives from the crypto and banking industries have yet to produce consensus on handling yield payments within the regulatory framework.

Banking industry voices argue that permitting stablecoin holders to receive yield on third-party platforms under the bill could undermine traditional financial institutions. Liao noted that when crypto markets were surging and every major TradFi institution appeared to be developing a digital asset strategy, there was far greater urgency around new legislation and policy from the SEC and CFTC. That momentum, she said, has since dissipated.

Industry Leaders Remain Cautiously Optimistic

Not all stakeholders share the pessimistic outlook. Digital Chamber CEO Cody Carbone told reporters after attending the World Liberty Financial forum, where Senator Moreno outlined his April timeline, that the mood among certain industry figures was encouraging. Carbone noted that leaders such as Coinbase CEO Brian Armstrong were "very optimistic" about finding resolutions to advance the bill.

However, Carbone acknowledged that beyond Moreno's stated goal, there were few concrete details on how lawmakers plan to overcome remaining hurdles. The trade group leader described a gap between the general enthusiasm at the event and the specifics needed to translate optimism into legislative action.

What This Means Going Forward

The legislative window is narrowing quickly. The 2026 election season has already begun in several states, with party primaries scheduled for Tuesday in Arkansas, North Carolina, and Texas ahead of the November general election. The Senate is also expected to take a month-long recess in August, returning just two months before voters head to the polls.

With the midterms approaching and the stablecoin yield issue unresolved, crypto market structure legislation risks becoming a casualty of election-year priorities. If senators cannot forge a compromise in the coming weeks, the comprehensive digital asset framework that industry participants have sought since July may need to wait until after the new Congress convenes in 2027.