Washington, D.C. — Just when the crypto industry was hoping for legislative clarity, political chess in the Senate has thrown a wrench into progress. With former President Donald $TRUMP warming up to crypto and courting major industry figures, some of crypto's Democratic allies are hitting the brakes on crucial legislation, fearing political fallout ahead of the 2024 election showdown.
The immediate casualty? The Senate’s stablecoin bill — once seen as a relatively non-controversial step toward regulating the digital dollar space — has now hit a wall. But that’s not all. Insiders suggest this could delay the far more significant market structure legislation, which aims to define the regulatory turf between the SEC and CFTC — the backbone of U.S. crypto oversight.
"Crypto was starting to look like a rare bipartisan opportunity," said a senior Congressional aide, "but $TRUMP 's pivot has made Democrats nervous. They don't want to hand him a win or alienate the progressive base."
$TRUMP recent comments — praising crypto innovation and hosting fundraisers with major digital asset donors — have shifted the political calculus. For some Democrats who had cautiously supported industry-friendly bills, the fear is now perception: that they could be seen as helping trump's agenda.
Meanwhile, Republicans are seizing the moment. House Financial Services Committee Chair Patrick McHenry (R-NC) has ramped up calls for swift action on crypto bills, claiming that "regulatory clarity is a matter of national competitiveness."
But without Senate cooperation, progress could stall — leaving U.S. crypto firms stuck in limbo, and innovation drifting overseas.
As the 2024 election draws closer, the future of U.S. crypto legislation may depend less on policy, and more on politics.