Investment bank TD Cowen: Crypto market structural legislation may be delayed until 2027 for approval and implemented by 2029

On January 6, according to The Block, investment bank TD Cowen stated that the U.S. legislative process aimed at establishing clear rules for the cryptocurrency market could take longer than expected, with the passage of relevant bills potentially delayed until 2027, and actual implementation possibly postponed until 2029. In a report released on Monday, TD Cowen pointed out that although there are still pathways to pass the crypto market structure bills this year, the political battles in the U.S. Congress make delays more likely. The institution believes that the Democrats currently lack the motivation to accelerate legislation, especially given their expectation of regaining control of the House in the 2026 midterm elections. They also noted that election outcomes are always uncertain, so Democrats might reach an agreement, which could happen soon since staff have been researching technical provisions for months. Timing favors the passage of the bill; if it is passed in 2027 and takes effect in 2029, the issue will be resolved. The cryptocurrency industry needs to accept that the presidential election could influence the final rules, and Democrats also need to accept that conflict-of-interest provisions do not apply to Trump.