A Republican Senator from North Carolina, Thom Tillis, has voiced concern about the shrinking timeframe for Congress to act on comprehensive cryptocurrency-related legislation.
Tillis, who serves on the Senate Banking Committee, warned that partisan trench warfare and the 2026 midterm elections could render digital asset reforms dead on arrival if action isn’t taken soon.
The Senator’s remarks come at a crucial moment for the US crypto industry, which has long been yearning for clear federal guidance. Meanwhile, there is growing bipartisan momentum behind regulating digital assets. However, lawmakers remain split on issues such as market structure, stablecoin regulation, and the division of jurisdiction among financial regulatory agencies.
If Congress is going to do anything with crypto, “it has to be done by the first part of January, February, or you’re done” in the session that runs through January 2026, Tillis said in an interview with Bloomberg earlier this week.
It is a cautionary message that senators’ colleagues and increasingly restless industry officials are sounding with rising urgency, worried that election-year politics will drown out policy discussions. Campaigning for the 2026 elections will be in full swing next year, and there is little appetite among lawmakers to undertake intricate policy changes in how government funds are allocated.
A high-profile bill potentially snared in the question is the Financial Innovation and Technology for the 21st Century Act (FIT21)—which was a re-envisioned market structure bill passed by the House in July. It seeks to clarify where oversight authority rests with the SEC and CFTC, which in turn is expected to bring regulatory clarity for cryptocurrency exchanges and token issuers.
The bill has not yet been approved by the Senate Banking Committee, of which Tillis is a member. And suppose they don’t act quickly, in a news cycle that’s crowded with other political priorities and an increasingly polarized Congress. In that case, there may be little to no legislative movement.
Crypto progress gets bogged down in partisan gridlock and leadership delays
Tillis’s comments were made as the US Congress was dealing with the fallout from a partial government shutdown that began on October 1, over how to fund healthcare and social spending programs. The shutdown has already led to several pieces of legislation being put on hold, among them the proposed CLARITY Act that would clarify digital asset classifications and effectively expand investor protections.
House Speaker Mike Johnson has similarly held floor sessions hostage, raising questions about a Legislature that’s been hesitant to move in the best of times anyway. When the Senate is in session, numerous committees have a backlog of work, including upcoming nominations and bills that address crypto and fintech.
The Responsible Financial Innovation Act — a Senate-approved crypto framework bill authored by Republican Senator Cynthia Lummis of the Senate Banking Committee, and a proponent for digital asset regulation for years — could be signed into law by 2026, according to Lummis. Yet in recent days, comments from Tillis suggest that the politics of this issue are shifting, and they are moving towards caution and delay.
Meanwhile, change is afoot at key financial agencies, adding another layer of unpredictability.
Crypto industry lobbies for Congress to act as foreign competitors race ahead
Crypto industry leaders have been urging Congress not to delay much longer, cautioning that the US risks being overtaken by other jurisdictions with more streamlined regulations — such as the European Union, which has recently introduced its Markets in Crypto-Assets (MiCA) regime.
The United States is leading, but there’s a risk it could fall behind in financial technology, according to Kristin Smith, the former chief executive of the Blockchain Association, who told Ms. Waters.
Some of America’s largest corporations, such as Coinbase and Ripple, have intensified their lobbying efforts in Washington to forge a bipartisan deal. They claim companies are being driven offshore, and a lack of policy clarity is smothering investment in blockchain research.
More broadly, consumer advocates and some Democratic lawmakers are concerned about investor protections and financial stability in the aftermath of high-profile collapses, such as FTX and Celsius. This has led to demands that we introduce a set of new rules and prudential standards before we enact any new legislation.
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