Wall Street investment bank TD Cowen recently released an interesting market research report, stating that the US midterm elections in 2026 could disrupt the pace of Congress's digital asset regulation efforts. This widely discussed bill is currently stuck in the Senate, and there are indeed many uncertainties about its prospects.

First, the name of the bill itself clearly indicates its purpose. In the House of Representatives, the bill is called the "CLARITY Act," but in the Senate, it has been renamed the "Responsible Financial Innovation Act." Both names seem to point to the same goal — establishing a clear regulatory framework for the US digital asset market.

TD Cowen's Washington research team predicts that don’t expect this bill to pass quickly. Their judgment is that it will not be officially approved until at least 2027, and actual implementation might not happen until 2029.

What is the reason? Elections. With the 2026 midterm elections approaching, Democratic senators might choose to hold off. After all, election results are inherently uncertain, and no one can predict how the power dynamics in Congress will change afterward. Some Democratic lawmakers simply want to push this matter back, waiting until the dust settles and a new Congress is formed. The report also mentions that the Senate Agriculture Committee released a bipartisan draft of the Market Structure Act in November, which includes new provisions related to "conflict of interest prevention."

This political game adds an extra layer of waiting cost to the policy expectations of the entire digital asset industry.