President Donald Trump’s tough stance on Venezuela has unexpectedly boosted crypto market sentiment. Bitcoin surged to $94,000 in the past 24 hours, boosting investor confidence and reigniting hopes that the broader crypto market could regain momentum in the coming days.
As prices move higher, regulatory developments are once again in focus. A new note from TD Cowen suggests that U.S. crypto market structure legislation could see limited progress this year.
However, the investment bank does not expect full approval anytime soon. According to the report, the bill is more likely to pass around 2027, with key rules potentially taking until 2029 to be fully implemented.
TD Cowen highlights conflict-of-interest rules as one of the biggest hurdles slowing the bill’s progress. Democrats are pushing for strict provisions that would bar senior government officials, including President Donald Trump, and their family members from owning or running crypto-related businesses while in office.
These proposals have become a major point of disagreement in negotiations. The note warns that pushing these restrictions too aggressively could stall or even derail the legislation altogether.
Because the issue is politically sensitive, lawmakers may be forced to seek middle ground. According to Cowen, the conflict-of-interest debate is now one of the main reasons consensus around the broader crypto market structure bill remains elusive.
Without compromise, the disagreement could continue to slow progress, despite growing support for clearer crypto regulations overall.
The report suggests one possible solution: delaying enforcement of the conflict-of-interest provisions by about three years. This would prevent the rules from applying during a Trump administration, easing political tensions and improving the bill’s chances of passing.
While this approach could help move the legislation forward, it also shows how political dynamics are shaping U.S. crypto regulation just as much as policy and market concerns.
For the crypto industry, the outlook remains mixed. On one hand, the promise of market structure legislation offers long-term clarity and could support greater institutional adoption.
On the other, the long timeline means companies and investors will continue to face regulatory uncertainty for several more years.
In the short term, even small regulatory updates could influence sentiment. Meanwhile, Bitcoin has started January 2026 on a strong note, with some market participants expecting prices to test the $100,000 level later this month.
It’s proposed legislation to define clear rules for crypto trading, custody, and oversight, aiming to reduce uncertainty and support long-term industry growth.
Political disputes, especially over conflict-of-interest rules for officials and families, are slowing consensus and pushing timelines further out.
TD Cowen expects partial progress before 2027, but full approval around 2027 and complete rule implementation closer to 2029.
Short-term uncertainty may cause volatility, but long-term clarity could attract institutions and support higher Bitcoin prices over time.
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