Time is running out dangerously for the US Congress. As the federal government goes through a historic shutdown, Republican Senator Thom Tillis is issuing an unequivocal warning: the window to pass crypto legislation will only remain open for a few more weeks. Then it will be too late. What makes this deadline so critical?
In brief
- Republican Senator Thom Tillis believes that Congress must act before February 2025 to pass crypto regulations.
- The 2026 midterm elections risk paralyzing any legislative progress on digital assets.
- The government shutdown further complicates the situation, notably delaying approvals of crypto ETFs by the SEC.
- Several major bills, including the House-passed CLARITY Act, still await Senate consideration.
Crypto law, race against time in the US Congress
Thom Tillis, a Republican senator from North Carolina and a senior member of the Banking Committee, issues an unequivocal warning. Congress has at most a few months to advance crypto regulation.
“By the first part of January, February,” he specifies according to Bloombergemphasizing the urgency of action during the current session which will end in January 2027.
The political context seriously complicates the situation. The government shutdown, which began in early October after the failure of budget negotiations between Republicans and Democrats, is already blocking many files.
Mike Johnson, Speaker of the House of Representatives, continues to delay parliamentary work. This administrative paralysis comes at the worst time for the crypto sector, which hoped to see several major legislative texts completed this year.
Tillis is particularly pessimistic about the chances of progression. “ I'm not optimistic that we'll move further on anything around digital assets, stablecoins, or cryptocurrencies in this Congress “, he confides.
His analysis is based on an unavoidable political reality: the 2026 midterm elections will transform the legislative landscape into an electoral battlefield, making any consensus almost impossible.
Major projects suspended in limbo
Several crucial pieces of legislation are awaiting their time in the Senate. The CLARITY Act, passed by the House of Representatives last July, was intended to establish a clear regulatory framework for the structure of the crypto market. The leaders of the Senate had promised to “rely” on this text to develop their own version. But time flies and nothing changes.
Republican Senator Cynthia Lummis, a leading figure on the crypto issue within the banking committee, remains optimistic. She had declared before the shutdown that her version of the project, called Responsible Financial Innovation Act, would become law by 2026. A bet which today seems increasingly risky in the face of political stagnation.
Despite the budget blockage that has paralyzed Washington for nearly a month, Senate Democrats are trying to maintain momentum.
A roundtable with executives from Kraken, Coinbase, Ripple and Circle is planned to restart discussions on market structure. This initiative shows that, even in times of crisis, the crypto sector retains an important place in legislative priorities.
The shutdown is also slowing down SEC decisions on crypto ETFs. The agency, operating with reduced staff, had to postpone the examination of several files, including the Litecoin and HBAR ETFs from Canary Capital which nevertheless seemed close to approval.
A strategic appointment in the balance
In the midst of this turmoil, one nomination attracts attention. Donald Trump has nominated Michael Selig to head the CFTC, one of the most influential financial regulators for the American crypto sector.
This Commodity Futures Trading Commission plays a major role in regulating digital asset companies. However, Selig's confirmation hearing did not appear on the Senate calendar last Monday, a further illustration of the accumulated delays.
The paradox is striking. While the Trump administration shows its support for the crypto sector and multiplies positive signals, Congress is struggling to transform these intentions into concrete legislative texts. Companies in the sector remain in regulatory uncertainty, while investors turn to safe havens like Bitcoin and gold.
In short, the window of opportunity is closing quickly. If Congress fails to act by February, the American crypto industry will have to wait until at least 2027 to hope to obtain the clear regulatory framework that it has been demanding for years. A wait that could be costly in terms of competitiveness compared to other more reactive jurisdictions.
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