The U.S. crypto industry may be heading into a challenging period of legislation.

Over the next two years, Democrats plan to use congressional oversight powers to pressure the Trump administration on several fronts, with crypto regulation and the AI industry among their priorities.

In the crypto market, efforts to advance a regulatory framework have already run into resistance. The main disagreements center on conflicts of interest involving politicians in the crypto business, particularly the boundaries of regulation for Trump’s personal crypto ventures. With senators and the White House unable to reach an agreement, the future of the CLARITY Act has also become uncertain.

Meanwhile, Elizabeth Warren is expected to become chair of the Senate Banking Committee, while Maxine Waters may seek the chairmanship of the House Financial Services Committee. This means congressional discussions on crypto legislation may become more cautious in the future.

From a market perspective, the short-term outlook leans negative. Delays in advancing the bill could weaken institutional confidence in the U.S. crypto market and affect expansion plans for trading platforms, stablecoins, and crypto companies. However, crypto prices will not be determined by legislative progress alone; macro liquidity, interest rates, and market capital remain more direct drivers.

In the medium to long term, the key question is whether the U.S. can establish clear market rules. If legislation remains stalled, some crypto companies and capital may shift to regions with clearer regulatory environments. If legislation ultimately passes, however, it could provide more stable expectations for institutional participation.

The next things to watch closely are the progress of the CLARITY Act and Congress’s concrete policy actions toward the crypto industry.
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