Legislation for the U.S. Crypto Market May Be Delayed Until After Midterm Elections

TD Cowen analysts stated that progress on crypto market structure legislation in the U.S. Senate might have to wait until after the midterm elections. There are clear differences between Republicans and Democrats regarding regulatory approaches, leading to slow negotiations. Republicans advocate for clarifying crypto asset jurisdiction and defining non-security cryptocurrencies, while Democrats focus on preventing illegal activities in decentralized finance, though facing criticism. Procedural differences in legislation are not significant enough to block an agreement, but senators lack strong motivation to push forward. It is expected that the legislation will be delayed.