US Crypto Bill Stalls as Focus Shifts to Housing

A landmark U.S. bill designed to regulate the crypto market is facing a significant delay of at least several weeks. Key lawmakers are redirecting their efforts toward housing legislation to support President Donald Trump's affordability agenda, according to sources familiar with the discussions.

The Senate Banking Committee is now expected to postpone its work on the digital-asset legislation until late February or March. This follows an initial delay last week and reflects a broader shift in priorities within the Trump administration ahead of this year's congressional elections.

A Political Pivot to Housing Affordability

While the Trump administration has marked crypto regulation as a priority, housing remains the single largest monthly expense for most Americans and a primary driver of inflation. Rising living costs have become a major political concern, especially after Republicans lost several key elections late last year.

In response, lawmakers are now exploring legislation aimed at preventing large institutional investors from purchasing single-family homes. This initiative aligns with a recent executive order signed by President Trump, which directs his administration to block government backing for such sales. The order also tasks the Treasury Department with defining what qualifies as a "large institutional investor."

It remains unclear how effective this policy will be in controlling housing prices. According to some estimates, large institutional investors own less than 1% of the country's single-family housing stock.

Uncertainty Looms for Digital Asset Regulation

This legislative pivot casts fresh doubt on whether the Senate's effort to create a new market structure for crypto will ultimately succeed.

The proposed legislation is crucial for the industry, as it aims to establish clear jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both regulators currently assert authority over different aspects of the digital asset market and have called on Congress to clarify their respective roles.

The bill's progress was already complicated last week when Coinbase Global Inc. suddenly withdrew its support, triggering an initial postponement. The extended delay may now provide more time for financial firms and crypto industry players to lobby for a consensus agreement.

The Path Forward for the Crypto Bill

The legislative process is further complicated by the involvement of multiple committees. The Senate Agriculture Committee, which also has a say on the matter, has announced plans to release its own version of a digital-asset bill this week.

The Agriculture Committee may vote on its proposal as early as January 27. For any legislation to reach the full Senate for a vote, its version will need to be reconciled and combined with the measure being considered by the Banking Committee, adding another layer to an already complex process.