"Virtual asset market-structure bill may be delayed until after midterm elections"

The U.S. Senate's virtual asset (cryptocurrency) market-structure bill discussions have reached an impasse, raising the possibility of a delay until after the midterm elections.

On the 13th (local time), according to crypto-focused outlet The Block, TD Cowen analyzed that "senators have more reasons to delay than to hurry" and that "the virtual asset market-structure bill could be postponed until after the midterm elections."

Currently in the U.S., Republicans and Democrats are clashing over how to regulate the virtual asset industry and the allocation of jurisdiction. Specifically, Republicans are pursuing a bill to clarify jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and to introduce the concept of 'auxiliary assets' to define assets that are not securities.

The Democrats recently released a proposal to prevent illegal activities in decentralized finance (DeFi), but it drew backlash from Republicans and the industry.

In addition, Democrats have voiced opposition to ownership of virtual asset companies by high-ranking public officials and their families, including President Donald Trump.

TD Cowen cited this as a 'key obstacle.' Jarrett Seiberg, an analyst, pointed out in the report that "political calculations are a bigger variable than superficial procedural disagreements," adding that "procedural issues are not the real obstacle. It's simply a signal that senators do not want to rush."

Seiberg also said, "This does not mean that agreement is completely impossible within the next 12 months, but the likelihood of rapid progress is low," and projected that "considering the Senate's remaining session schedule and the election campaign phase, discussions are likely to be postponed until after the election."