“The next most important cryptocurrency law after GENIUS is not working!” Here’s what you need to know…

The US government shutdown negatively impacted many sectors and disrupted the progress of the crypto sector.

Currently, the shutdown has delayed the approval of altcoin ETFs such as XRP and Solana (SOL), which are awaiting SEC approval.

Separately, the approval process for the virtual currency bill in the United States was also postponed.

Investment bank TD Cowen has suggested that the US crypto bill could be delayed until after the November 2026 election.

The Block reported that US investment bank TD Cowen predicted that the passage of a major cryptocurrency market structure bill could be delayed until after the midterm elections in November 2026.

The bank said Republicans and Democrats are negotiating legislation on how to regulate the cryptocurrency sector, but things are not progressing well.

Negotiations over the bill, known as the CLARITY Act, have reportedly stalled due to behind-the-scenes disagreements between Democrats and Republicans.

In this regard, TD Cowen said that while it was not impossible that progress could be made within the next 12 months, there were currently more reasons to delay than accelerate the Bill.

“We are not saying there is no room for action in the next 12 months.

Our contention is that senators have more reasons to act late than to act quickly. ”

The bank said the bill’s biggest hurdle is Democrats’ demand to ban ownership of crypto companies by government officials, including President Donald Trump, and their families.

The CLARITY Act aims to establish a regulatory framework for the virtual currency industry by defining the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the virtual currency field. The provisions added to the bill also define secondary assets. This provision clarifies which digital assets and cryptocurrencies are and are not considered securities.

CLARITY covers more comprehensive cryptocurrency regulation, unlike GENIUS, which covers more limited topics such as stablecoins.

In July 2025, the U.S. House of Representatives approved a virtual currency regulation bill called the “CLARITY Act.”

*This is not investment advice.