Lawmakers Stall on Crypto Legislation, Casting Doubt on Pro-Blockchain Promises
The timeline for passing digital asset market structure legislation is slipping, signaling mounting challenges for lawmakers attempting to fulfill their pro-crypto commitments.
During the inaugural meeting of the U.S. Senate Banking Subcommittee on Digital Assets on Wednesday, Sen. Cynthia Lummis (R-WY) revealed that a bipartisan coalition of crypto-friendly legislators now aims to pass a comprehensive regulatory framework by year’s end. This marks a significant delay from the Republicans' earlier projections to advance key reforms through Congress.
“Many members of the Senate are still trying to wrap their heads around ‘what is a Bitcoin;’ ‘what is a digital asset,’ ‘what is a stablecoin,’” Lummis noted during the session. She expressed hope that a bill could reach President Trump’s desk for approval before 2025.
The delay stands in contrast to the aggressive 100-day agenda championed by newly appointed Crypto Czar David Sacks. Earlier this month, Sacks vowed to push for swift legislative action to enshrine digital asset market structure reforms and other crypto-friendly initiatives into law within the first few months of President Trump's second term.
However, the tone at Wednesday’s meeting suggested a lack of urgency. Lawmakers and industry experts instead spent significant time discussing the nuances of existing securities regulations and the recently introduced Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 Act.
The subdued approach comes as policymakers appear to be stepping back from some of their high-profile crypto campaign promises. One such initiative—the push to establish a Bitcoin reserve within the U.S. Treasury—has stalled, with little mention of the proposal at Wednesday’s session. Similarly, three state-level bills aimed at creating Bitcoin reserves have failed to gain traction this year.
Despite setbacks, the Trump administration has delivered on certain pre-election pledges to the crypto community. Trump pardoned Silk Road founder Ross Ulbricht shortly after returning to office, and he appointed pro-crypto advocate Paul Atkins to head the Securities Exchange Commission. These moves initially fueled a surge in investor optimism, propelling Bitcoin and other tokens to record highs.
Yet, that euphoria has since waned. Bitcoin has tumbled 12.6% over the past week to $84,000, while top assets like Solana and Ethereum have also recorded double-digit declines. The market downturn underscores the challenges ahead for crypto-friendly lawmakers as they attempt to convert political rhetoric into meaningful policy.