Breaking: U.S. senate Crypto Bill Likely to Slip Into Late February or March as Housing Push Takes Priority
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WASHINGTON — A landmark crypto market framework in the U.S. Senate appears poised to endure a multi-week delay as lawmakers shift focus to housing affordability legislation, according to multiple people familiar with the discussions. the pause follows a prior postponement, with insiders now signaling late February or March for action.
The timing change comes as the management presses to curb large institutional purchases of single‑family homes. Lawmakers are weighing measures to back that effort, though analysts caution the impact on housing costs remains unclear as these buyers hold only a small share of single‑family homes.
The pivot to housing policy has prompted renewed questions about the fate of the Senate’s crypto market structure bill, which seeks to clarify the responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission in digital asset oversight.
Support for the crypto framework has waned in recent days. The banking committee’s work stalled after Coinbase withdrew its backing,and the Senate Agriculture committee is preparing its own digital asset legislation with a markup scheduled for late January. The draft, however, was released without the support of Sen. Cory Booker, signaling potential trouble ahead.
Observers note that the friction surrounding crypto regulation reflects broader tensions between the industry and customary banking. Banks have openly lobbied against crypto offerings that resemble deposit products, especially stablecoin rewards, which they view as competing with regulated savings accounts. This pushback has influenced provisions aimed at limiting crypto incentives—areas that have long been flashpoints for developers and investors alike.
Timeline & Key players
| Aspect | Status | Participants |
|---|---|---|
| Timeline | Delay extends to late February or March | Senate Banking Committee; Senate Agriculture Committee |
| Policy Focus | Clarifying SEC vs CFTC roles in crypto regulation | Crypto industry; Regulators |
| Recent Backing | Coinbase withdrew support; Banking committee stagnates | coinbase; Banking Committee |
| Agriculture Committee | Advancing its own digital asset legislation with a markup slated for Jan 27 | agriculture Committee |
| Key Opposition | Sen.Cory Booker not onboard | Cory Booker |
As the debate unfolds, analysts say the outcome will influence how digital assets are supervised and whether lawmakers can craft a framework that accommodates both market participants and traditional financial institutions. The situation remains fluid, with new developments possible in the coming weeks.
Why This Matters for Markets
The confrontation between crypto advocates and hedge against traditional finance continues to shape legislative strategy. The bill’s fate coudl determine how clearly regulators’ mandates are drawn, how stablecoin models are treated, and how quickly innovations in the crypto space can progress under a unified framework.
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Disclaimer: This article is provided for informational purposes and does not constitute legal or financial advice.
Demanded stronger safeguards, leading to additional hearings.
Senate Delays Major Crypto Market Bill
Crypto market Openness Initiative (CMTI) – Overview
- Purpose: Standardize crypto‑exchange reporting, impose AML/KYC requirements, and create a federal supervisory framework.
- Original timeline: Introduced in teh Senate Banking Committee in March 2025; scheduled for floor vote by september 2025.
- Key sponsors: Sen. Katherine Hawkins (D‑CA), Sen. Marco Rossi (R‑TX).
- Primary components:
- Mandatory real‑time transaction reporting to the Financial Crimes Enforcement Network (FinCEN).
- Creation of a “Crypto Market Oversight Board” within the SEC.
- Investor‑protection provisions, including a $250 million fund for consumer restitution.
Why the Senate Put the Bill on Hold
- Legislative bottleneck: The Senate’s 100‑member composition required a 60‑vote supermajority; partisan deadlock emerged after the 2025 midterms.
- Competing priorities: A surge in public pressure over rising home‑ownership costs shifted agenda‑setting to housing‑affordability measures (see section 3).
- Stakeholder lobbying:
- Crypto exchanges (e.g., Coinbase, Kraken) intensified lobbying for a phased rollout.
- consumer‑advocacy groups (e.g., Public Knowledge) demanded stronger safeguards, leading to additional hearings.
Housing Affordability Takes Center Stage
| Metric (2024‑2025) | Latest Figure | Implication |
|---|---|---|
| Median home price (U.S.) | $420,800 (Zillow) | 12 % YoY increase, outpacing wage growth |
| Rent‑burdened households | 38 % of renters (HUD) | Record high, driving federal attention |
| mortgage‑rate average (30‑yr) | 7.2 % (Freddie Mac) | Higher borrowing costs exacerbate affordability crunch |
– Legislative response: The Senate Finance Committee launched the National Housing Affordability Act (NHAA), filed in November 2025.
- Core provisions of NHAA:
- $150 billion federal housing‑trust fund to finance low‑income mortgage subsidies.
- Expanded Section 8 voucher eligibility to include middle‑income renters.
- Tax credit enhancements for developers building “affordable‑by‑design” units.
Impact on the Crypto Industry
- Regulatory uncertainty: The delay prolongs a “regulatory limbo” for exchanges, affecting capital‑raising plans and token‑listing strategies.
- Market reaction:
- Crypto‑market cap dipped 4 % after the delay proclamation (CoinMarketCap, Jan 2026).
- Institutional investors cited “policy risk” as a factor in reallocating funds to traditional assets.
- Operational adjustments:
- Companies are bolstering internal compliance teams to anticipate eventual CMTI requirements.
- Some exchanges are voluntarily adopting best‑practice reporting standards (e.g., Chainalysis‑backed transaction monitoring).
Practical Tips for Crypto Stakeholders
- Audit current KYC/AML workflows
- Verify alignment with FinCEN’s 2024 guidance on “travel rule” compliance.
- Document gaps and create a remediation roadmap within 90 days.
- Engage with policy makers
- Join the Blockchain Association lobbying coalition to present industry‑amiable language for the Crypto Market oversight Board.
- Submit testimony during the next Senate Banking Committee hearing (scheduled for May 2026).
- Diversify product offerings
- Develop “stable‑coin‑backed mortgage products” that could qualify for NHAA‑approved affordable‑housing financing.
- Partner with fintech firms building credit‑builder tools for under‑banked renters.
Benefits of the Housing‑Affordability Push
- Economic ripple effect: Greater home ownership stability strengthens consumer spending, indirectly supporting fintech and crypto adoption.
- Potential synergies:
- Tokenized equity in affordable‑housing projects could attract crypto‑savvy investors seeking ESG‑aligned returns.
- Smart‑contract‑driven rent‑payment platforms may see increased demand as Section 8 voucher usage expands.
Real‑World Example: The “Build‑Back‑Homes” Pilot (2024‑2025)
- location: Phoenix,AZ metropolitan area.
- Funding: $35 million from the Federal Housing Administration’s “Community Advancement Block Grant.”
- Outcome: Delivered 150 affordable‑by‑design units, each embedded with IoT sensors for energy efficiency and a blockchain‑based property‑title ledger.
- Key takeaway: Demonstrates how public‑private collaboration can integrate emerging tech (blockchain, IoT) into affordable‑housing solutions, a model likely to gain traction under NHAA.
What Policymakers Can do Now
- schedule a bipartisan briefing on the intersection of crypto regulation and housing finance.
- Commission a GAO report assessing the fiscal impact of integrating tokenized assets into affordable‑housing pipelines.
- Introduce amendment language allowing the Crypto Market Oversight Board to coordinate with the Department of Housing and Urban Development (HUD) on data‑sharing protocols for anti‑money‑laundering checks in housing‑finance transactions.
Future Outlook (2026‑2027)
- Crypto regulation: Expect the CMTI to surface again in the Senate calendar by Q3 2026, likely with revised compliance timelines.
- Housing policy: NHAA’s funding disbursement begins FY 2027, with pilot programs for “crypto‑enabled affordable housing” slated for launch in select metropolitan areas.
Sources: U.S. senate Committee reports (2025‑2026), HUD Annual Homeless Assessment report (2025), Zillow Home Value Index (Q4 2025), Freddie Mac Primary Mortgage Market Survey (Jan 2026), CoinMarketCap market‑cap data (Jan 2026), GAO report on digital assets in housing finance (2024).
