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Crypto Market Structure Faces Delays
Crypto market structure legislation in the United States could take years to fully materialize, even if lawmakers pass it in the near term. According to Justin Slaughter, Vice President of Regulatory Affairs at crypto investment firm Paradigm, the lengthy and complex rulemaking process could stretch implementation across multiple presidential administrations.
While momentum around crypto regulation has increased in Washington, Slaughter cautions that expectations for swift clarity may be unrealistic. In a post on X, he explained that market participants often underestimate how long federal agencies take to translate legislation into enforceable rules.
What Rulemaking Actually Involves
Rulemaking begins only after legislators pass a bill and the president signs it into law. At that point, regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) must define how the law will work in practice.
This process typically includes drafting proposed rules, publishing them for public comment, reviewing feedback, and issuing final regulations that carry legal authority. Each of these steps can take months or even years, particularly when the legislation is as expansive as a crypto market structure bill.
Slaughter highlighted that the current proposal alone requires 45 separate rulemakings, making a prolonged timeline almost inevitable.
Senate Committees Still Reviewing Bill
The crypto market structure bill has advanced to the Senate committee stage with bipartisan backing and ongoing negotiations. The Senate Banking Committee is expected to hold a markup session on Thursday, while the Senate Agriculture Committee has postponed its hearing until January 27.
These procedural steps reflect growing interest from lawmakers, but they also underscore how early the bill still is in the legislative process. Before any rulemaking can begin, both the House of Representatives and the Senate must approve the bill in identical form.
Even then, implementation would be far from immediate.
Implementation Could Span Two Terms
Slaughter predicts that if the bill becomes law, the full set of rules could take nearly two presidential terms to come into force. He emphasized that the sheer number of required regulatory actions means implementation would likely continue beyond the current administration and into the next.
“The process of implementing this bill will not just run through this presidential term, it will probably run through the entirety of the next one,” he said.
For crypto firms, investors, and developers hoping for near-term regulatory certainty, this forecast suggests patience will be essential.
Lessons From Dodd-Frank Reform
To illustrate his point, Slaughter referenced the Dodd-Frank Wall Street Reform and Consumer Protection Act. Passed in 2010 following the global financial crisis, Dodd-Frank was one of the most significant financial reforms in U.S. history.
Despite being enacted over a decade ago, parts of Dodd-Frank rulemaking remain unfinished. Most non-CFTC rules were finalized between 2013 and 2018—three to eight years after the law passed.
This precedent suggests that even with political will and regulatory focus, comprehensive financial legislation rarely translates into immediate change.
Crypto Bill May Still Stall
Before rulemaking delays even become an issue, the crypto market structure bill must survive the legislative process itself. Slaughter noted that major bills often “die” multiple times before finally passing into law.
“I’ll be watching on Thursday to see if there is a bipartisan process or things fall apart,” he said, adding that setbacks are common even for legislation that eventually succeeds.
Political disagreements, shifting priorities, and election cycles can all slow or derail progress, especially for complex and controversial topics like crypto regulation.
What This Means For Crypto Industry
For the crypto industry, the message is clear: regulatory clarity is coming, but not quickly. Firms operating in the U.S. may need to navigate continued uncertainty while preparing for a gradual rollout of new compliance requirements.
On the positive side, a deliberate rulemaking process allows regulators to gather public input and design more workable frameworks. However, prolonged timelines may also push innovation offshore if companies seek jurisdictions with clearer rules.
Investors, meanwhile, should temper expectations that a single bill will immediately transform crypto markets.
Long Road Toward Regulatory Clarity
While bipartisan support for crypto market structure legislation marks meaningful progress, the road to full implementation remains long and uncertain. As history shows, passing a law is only the first step in reshaping financial markets.
If Slaughter’s assessment proves accurate, the crypto industry may be navigating regulatory gray areas for years to come—long after headlines declare legislative victory.