Senator Thom Tillis Warns of Tight 2026 Deadline for US Crypto Legislation

Republican Senator Thom Tillis has issued a urgent warning about the fast-approaching deadline for the United States Congress to pass comprehensive cryptocurrency legislation, emphasizing that action must be taken before the 2026 elections to avoid partisan gridlock.

Tillis, a member of the Senate Banking Committee, highlighted in an interview that "it has to be done by the first part of January, February, or you’re done" in the legislative session running through January 2026. This timeline is critical due to the potential for election-year politics to derail policy discussions, with campaigning expected to intensify in 2026.

The push for regulatory clarity is backed by bipartisan efforts, including involvement from Senator Cynthia Lummis, and focuses on bills like the Financial Innovation and Technology for the 21st Century Act (FIT21), which was passed by the House in July. FIT21 aims to clarify oversight authority between the SEC and CFTC, providing market structure guidelines for cryptocurrency exchanges and token issuers. However, the bill has not yet been approved by the Senate Banking Committee, and delays from a recent partial government shutdown and other political priorities could stall progress.

Industry leaders, including companies like Coinbase and Ripple, have intensified lobbying efforts, warning that the US risks falling behind other jurisdictions such as the European Union, which has implemented the Markets in Crypto-Assets (MiCA) regime. The lack of clear federal guidance could undermine investor confidence and market stability, especially in the wake of high-profile collapses like FTX and Celsius, raising concerns about investor protections and financial stability.