In 2025, the United States witnessed remarkable advancements in cryptocurrency regulation. This progress was highlighted by the enactment of the GENIUS Act, which brought stablecoins under regulatory oversight, alongside significant strides made toward passing another critical law known as the CLARITY Act.
The CLARITY Act is poised to become a landmark piece of legislation aimed at creating definitive guidelines for digital currency markets. It is widely regarded as the most consequential regulatory development since GENIUS and is anticipated to be enacted within this year.
Nevertheless, a recent analysis from investment bank TD Cowen suggests that U.S. crypto-related laws might face delays until 2027 before coming into effect.
Jaret Seiberg, managing director at TD Cowen, indicated that while some progress on the CLARITY Act could occur soon, its full adoption may not happen until after 2027.
According to The Block’s coverage of Seiberg’s remarks, although there remains a possibility for passage this year, ongoing political uncertainties make postponement until 2027 more probable. Moreover, if political challenges persist unresolved throughout this year, final regulations might only be implemented by 2029.
Seiberg pointed out that Democrats are unlikely to expedite approval of the CLARITY Act because they anticipate regaining control over the House during November’s midterm elections and prefer delaying legislation accordingly.
The report emphasized that one major sticking point involves provisions addressing conflicts of interest; specifically, Democrats insist on limiting cryptocurrency business participation by senior U.S. officials and their relatives.
This concern partly stems from scrutiny surrounding former President Donald Trump and his family’s involvement with various crypto ventures becoming a politically sensitive topic.
TD Cowen also proposed that lawmakers might reach an agreement allowing deferral of conflict-of-interest rules for roughly three years so as not to hinder passage of the broader CLARITY framework. Postponing these restrictions beyond current administration terms could ease political tensions while enabling legislative momentum to build.
A congressional hearing on January 15th will review details of the CLARITY bill designed to establish clear regulatory structures governing digital assets in America. This approach divides responsibilities between agencies like SEC and CFTC covering institutional supervision and asset categorization. Additionally, it includes clauses exempting certain cryptocurrencies—under defined conditions—from registration mandates imposed by Securities Act regulations dating back to 1933.
*This content does not constitute financial advice or recommendations.