Senator Thom Tillis Sounds the Alarm on Crypto Legislation
Senator Thom Tillis, a Republican from North Carolina and member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, has warned that Washington’s window to enact meaningful cryptocurrency regulation is rapidly closing.
In an interview with Bloomberg published Monday, Tillis cautioned that Congress has only a few months to move forward with critical digital asset legislation before election-year politics derail the agenda.
“I’m not optimistic about us moving much further on anything around digital assets, stablecoins, or crypto in this Congress,” Tillis said.
Crypto Legislation Faces Tight Deadline
Senator Tillis emphasized that the 2026 midterm elections will slow legislative momentum, as lawmakers shift focus to campaigning and party priorities.
He noted that early 2026 — particularly January or February — would be the ideal window for passing crypto bills, before the session ends in January 2027.
One of the most consequential bills under Senate review is the market structure framework, which already passed the House of Representatives in July 2025. The bill seeks to clearly define oversight boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for digital assets.
Also Read : Japan’s FSA Eyes Major Crypto Policy Shift, May Let Banks Hold Bitcoin and Issue Stablecoins
Government Shutdown Adds to Crypto Delays
Tillis’s warning coincides with a U.S. government shutdown that began on October 1, triggered by partisan deadlock over healthcare and subsidy cuts.
While the U.S. Senate remains in session, House Speaker Mike Johnson has frozen progress, leaving several pending bills — including the CLARITY Act — in legislative limbo.
Introduced earlier this year, the CLARITY Act aims to create a comprehensive crypto regulation framework by clarifying asset classifications, compliance rules, and investor protections.
However, the ongoing shutdown and approaching elections have limited lawmakers’ ability to reach consensus on key provisions.
Senate Banking Committee Divided but Hopeful
Despite challenges, Senator Cynthia Lummis and other leading lawmakers remain cautiously optimistic.
Lummis — co-author of the Responsible Financial Innovation Act — has expressed hope that her legislation could still be enacted by 2026, provided bipartisan support holds.
However, Tillis’s remarks highlight a growing fear that regulatory stagnation could weaken U.S. global competitiveness in blockchain and digital finance.
CFTC Leadership in Flux
Complicating matters further, President Donald Trump has nominated Michael Selig, an SEC official, to lead the Commodity Futures Trading Commission (CFTC) — one of the key agencies overseeing cryptocurrency markets.
As of this week, Selig’s confirmation hearing has yet to appear on the Senate calendar, signaling potential delays in filling critical crypto regulatory leadership roles.
U.S. Crypto Regulation at a Crossroads
The United States now risks falling behind Canada, Japan, and the European Union (EU) in establishing clear crypto laws.
If Congress fails to act before the 2026 election cycle begins, the digital asset industry could face years of uncertainty — potentially until 2027 — a delay that experts warn may cost the nation billions in innovation, capital, and global market share.
