A Post-Shutdown Reset For US Crypto Regulation

After a year marked by legislative paralysis and a historic government shutdown, US lawmakers are preparing to open 2026 with renewed momentum on digital asset regulation. Senate committees are expected to revisit long-delayed market structure legislation in January, signaling an effort to reset crypto policy discussions after months of stagnation.

Members of the Senate Banking Committee are expected to hold a markup of the Responsible Financial Innovation Act during the second week of January, according to people familiar with the matter.

The move would mark the first substantive advance on market structure legislation since progress stalled in 2025, when Democratic concerns over decentralized finance and the longest government shutdown in US history derailed negotiations.

Cody Carbone, CEO of digital asset advocacy group The Digital Chamber, revealed

"The second week of January wil have at least one markup on pending market structure legislation in the Senate."

The Senate Agriculture Committee is also continuing to work on its own version of the bill, a necessary step before any potential floor vote.

The January timeline positions digital asset regulation as one of the first major policy tests of 2026, reflecting growing pressure on lawmakers to address regulatory uncertainty that has lingered since enforcement actions intensified across the crypto sector.

Clarifying Agency Roles After Years Of Uncertainty

The Senate effort builds on the Digital Asset Market Clarity Act, which passed the House of Representatives in July 2025. The House bill is hoping to give the Commodity Futures Trading Commission greater authority over the cryptocurrency market, a shift widely viewed as an attempt to bring clearer regulatory oversight to an industry long caught between competing agencies.

Senate drafts of the Responsible Financial Innovation Act have emphasized closer coordination between the CFTC and the Securities and Exchange Commission, aiming to resolve jurisdictional disputes that have complicated compliance for exchanges, issuers and investors.

Lawmakers are expected to revisit contentious issues including consumer protection standards, treatment of stablecoins and how decentralized financial protocols fit within existing regulatory frameworks.

While industry advocates have welcomed renewed Senate engagement, it remains unclear whether the legislation can secure enough votes to pass in the Senate, should it be presented for a floor vote.

Election Pressures And Leadership Changes Could Shift Focus Away From Crypto

Despite January’s renewed momentum, political headwinds remain. Lawmakers have warned that the approach of the 2026 midterm elections could again slow progress, as legislative priorities shift toward campaigning.

Uncertainty has also increased following Wyoming Senator Cynthia Lummis’ decision not to seek reelection in 2026. Lummis, one of the Senate’s most vocal advocates for crypto legislation and a co-sponsor of the Responsible Financial Innovation Act, said in December that she would step aside after one term.

The lawmaker, who will have served one term in the Senate, said her energy didn't "match up" with what was required to be able to serve for another six years. However, she has pledged to continue pushing the bill forward before leaving office.

For the crypto industry, January’s markup represents both a reset after 2025’s legislative deadlock and a narrowing opportunity to establish federal market structure rules before political pressures intensify later in the year. Whether the early momentum can be sustained remains an open question as Congress balances regulatory ambition against an increasingly crowded election calendar.