Recently, the proposed reform plan for the US cryptocurrency market by regulators has fallen into a deadlock. This bill, known as the first comprehensive crypto regulation law, was originally expected to provide a clear policy framework for the entire industry, but it has repeatedly encountered obstacles amid complex political disputes.

The root of the problem lies in a financial dispute involving a key political figure, which has entangled the crypto sector. The cryptocurrency assets associated with his company have become the biggest obstacle to advancing the bill. This is not just a legal issue; it also involves a power struggle between the two parties in Congress—Democrats aim to curb speculative activities in the crypto market through strict regulation, while Republicans attempt to protect certain stakeholders with specific provisions. As a result, the originally scheduled review timeline has been completely disrupted, and industry estimates suggest that the bill may be stalled until 2029.

What are the consequences of this delay? In the short term, centralized exchanges will continue to profit during the regulatory vacuum. Without clear rules, large platforms can take advantage of the situation to charge various fees. For ordinary investors, the lack of protective measures means they will face greater risks when chasing hot trends. Mainstream public chains like ETH and SOL, along with their ecosystem tokens, could face liquidity shocks if regulation tightens.

However, there is no need to be overly pessimistic. Political delays are just delays; the core framework of the bill is unlikely to undergo fundamental changes. The 2029 timeline is merely industry speculation; the actual progress could be faster or implemented in phases. Moreover, it is worth noting that tighter regulation could actually benefit stablecoins and other compliant assets—standardization means more institutional funds are willing to enter the market.

Ultimately, this regulatory turbulence reflects a phenomenon: the crypto industry is becoming politicized. Politicians are using crypto issues as leverage, while the industry itself bears the political risks. As participants, rather than panicking when policies are finally implemented, it’s better to stay informed about policy developments and prepare accordingly.