Analyst: U.S. Crypto Market Structure Legislation May Have to Wait Until After the Midterm Elections

Jinse Finance reported that TD Cowen analysts stated that progress on crypto market structure legislation in the U.S. Senate may have to wait until after the midterm elections. There are disagreements between Republicans and Democrats on how to regulate the crypto industry, and negotiations have not been smooth. Republicans have proposed dividing jurisdiction over crypto assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and defining “ancillary assets” to clarify non-securities cryptocurrencies; Democrats, on the other hand, have proposed measures to prevent illegal activities in decentralized finance, but these have been questioned by Republicans and the industry. TD Cowen pointed out that although procedural differences will not prevent an agreement from being reached, senators are not in a hurry to move forward, and legislation is expected to be delayed. Some Democrats have also called for a ban on senior officials and their families holding crypto company assets, which further increases the difficulty of passing legislation.