This week’s regulatory developments present a well-known actuality in Washington: there’s broad settlement that crypto wants guidelines, however little consensus on how these guidelines must be written or who ought to take the lead.
That rigidity was on full show as Senate Judiciary leaders Chuck Grassley and Dick Durbin raised considerations over a provision in Senate Banking Chair Tim Scott’s crypto market construction invoice.
Senate Judiciary leaders oppose blockchain developer protections in crypto invoice, warning exemptions modeled on Lummis-Wyden BRCA might block cash laundering prosecutions.#Senate #CryptoBill #Developershttps://t.co/onqKSmbDQ2
— Cryptonews.com (@cryptonews) January 19, 2026
The language would exempt sure blockchain software program builders from monetary licensing necessities, a transfer lawmakers warned might weaken legislation enforcement’s means to pursue cash laundering and different illicit monetary exercise.
In a private letter first reported by Politico, Grassley and Durbin argued that the availability falls squarely underneath the Judiciary Committee’s jurisdiction and famous that their panel was not consulted earlier than the markup was scheduled and later postponed.
The part intently mirrors the Blockchain Regulatory Certainty Act, a bipartisan proposal led by Senators Cynthia Lummis and Ron Wyden, however its inclusion has now turn out to be one other flashpoint in an already fragile legislative course of.
Market Construction Invoice Slips Additional Down the Agenda
Momentum behind the broader market construction invoice continues to gradual. Based on stories, the Senate Banking Committee has once more delayed work on the laws, pushing consideration to late February or March. As a substitute, lawmakers are shifting focus to housing laws following President Donald Trump’s renewed push on affordability.
Crypto market construction invoice – Readability Act – has been additional delayed by the US Senate Banking Committee till late February or March.#CryptoMarketStructureBill #ClarityAct #CryptoRegulationhttps://t.co/sfk07tyygY
— Cryptonews.com (@cryptonews) January 22, 2026
The delay reinforces a rising concern inside the crypto business: regardless of years of debate, market construction reform stays susceptible to political reprioritization. What was as soon as positioned as pressing now dangers being sidelined by competing legislative priorities.
Partisan Cracks Start to Present
Whereas the Banking Committee hesitates, the Senate Agriculture Committee is transferring forward, even with out Democratic help. Chair John Boozman has scheduled a markup for January 27, acknowledging that “variations stay on elementary coverage points” however signaling a willingness to proceed regardless.
Senate Agriculture Committee advances crypto invoice for January 27 markup with out Democratic help as Banking delays CLARITY Act over stablecoin disputes.#ClarityAct #Stablecoinhttps://t.co/Wjz1vpYh5d
— Cryptonews.com (@cryptonews) January 22, 2026
If handed, the transfer would mark a shift away from bipartisan consensus towards a extra partisan strategy, elevating questions concerning the long-term sturdiness of any ensuing framework in a divided Congress.
Regulators Step In as Lawmakers Stall
As Congress struggles, regulators are more and more filling the hole. Newly appointed CFTC Chair Michael Selig this week declared the beginning of a “golden age” for U.S. monetary markets, launching a “Future-Proof” initiative meant to replace decades-old guidelines to mirror crypto, blockchain, and synthetic intelligence.
@CFTC Chair @MichaelSelig launches "Future-Proof" initiative to modernize derivatives guidelines, calling it America’s “GOLDEN AGE” for markets. #CFTC #MichaelSelig https://t.co/LMwHJ6NJLi
— Cryptonews.com (@cryptonews) January 20, 2026
On the White Home, Digital Asset Advisor Patrick Witt added strain from one other angle, urging swift passage of a market construction invoice. Pushing again in opposition to claims that “no invoice is best than a nasty invoice,” Witt warned that failure to behave now might invite way more punitive laws underneath a future Democratic Congress, significantly within the aftermath of a market disaster.
Enforcement Pulls Again—Coordination Strikes Ahead
In the meantime, enforcement developments proceed to shift. A Cornerstone Analysis report discovered that SEC crypto enforcement actions fell 60% in 2025 following Paul Atkins’ appointment as chair, indicating a transfer away from regulation by enforcement and towards a extra focused deal with fraud.
The SEC opened simply 13 crypto enforcement instances in 2025, down 60% from 2024, with most new actions underneath Chair Paul Atkins centered on fraud.#SEC #CryptoEnforcement https://t.co/YI5S1uVisH
— Cryptonews.com (@cryptonews) January 23, 2026
That recalibration was bolstered this week as Atkins and Selig introduced a joint occasion aimed toward regulatory harmonization between the SEC and CFTC, a symbolic however significant step towards lowering the jurisdictional confusion that has lengthy plagued U.S. crypto markets.
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Taken collectively, this week’s developments level to a transparent sample: legislative paralysis is pushing extra duty onto regulators. Whether or not that leads to readability or additional fragmentation will depend upon whether or not coordination can exchange congressional gridlock—and whether or not lawmakers can nonetheless reclaim management earlier than companies set the principles by default.
The submit Weekly Crypto Regulation Roundup: Market Construction Stalls as Energy Shifts From Congress to Regulators appeared first on Cryptonews.