US Crypto Bill Stalled Until 2027: Firms in Limbo as EU Enforces Strict New Tax Rules

WASHINGTON, D.C., January 6, 2026 – The long-awaited comprehensive crypto market structure bill has effectively hit a dead end in the Senate Banking Committee, with key legislative analysts now confirming that a final vote has likely slipped to 2027. This latest US crypto regulation delay leaves American digital asset firms navigating another year of uncertainty, even as the European Union and the United Kingdom began enforcing stringent new transparency mandates this week. While the EU moves ahead with its data-sharing regime, the US industry remains stuck in a costly holding pattern.

Senate Gridlock Pushes Market Structure Bill to 2027

Hopes for a legislative breakthrough in early 2026 have evaporated as congressional gridlock continues to stall the bipartisan market structure legislation. Despite passing the House last year, the bill—aimed at clarifying the jurisdictional split between the SEC and CFTC—has languished in the Senate. Sources close to the Banking Committee indicate that disputes over conflict-of-interest provisions and decentralized finance (DeFi) definitions have made a markup hearing unlikely before the midterms.

For US-based crypto companies, this specific US crypto regulation delay is a severe blow. Without the statutory clarity provided by a crypto market structure bill, firms are left subject to the existing "regulation by enforcement" environment, despite recent leadership changes at federal agencies. Industry lobbyists had banked on 2026 being the year of codification; instead, the window for passing complex financial legislation is closing as election season rhetoric heats up.

"We are effectively looking at a 2027 timeline for any meaningful statutory framework," notes a senior policy analyst at a leading DC fintech think tank. "Until then, the US remains the only major financial jurisdiction without a dedicated rulebook for digital assets, forcing innovation offshore to more predictable environments."

EU and UK Enforce Strict CARF Compliance 2026

While Washington stalls, Europe has officially entered a new era of enforcement. As of January 1, the European Union's DAC8 directive and the UK's parallel regulations have fully activated the Crypto-Asset Reporting Framework (CARF). This global standard, developed by the OECD, mandates the automatic exchange of tax-relevant information between jurisdictions.

Under these new EU crypto tax rules, all Crypto-Asset Service Providers (CASPs) operating within the bloc must now collect granular transaction data on their users. This includes verifying tax residency and tracking every trade, transfer, and exchange. Although the first exchange of this data between tax authorities won't occur until 2027, the legal obligation to record this data began five days ago.

The implementation of CARF compliance 2026 represents a massive shift in global privacy norms for crypto users. "The days of the 'wild west' in Europe are officially over," explains a London-based tax attorney. "If you trade on a regulated exchange in the EU or UK today, that data is being logged for automatic transmission to tax authorities. It is a level of surveillance that US lawmakers are still debating, but Europe has already operationalized."

SEC Crypto News: Agency Actions Fill the Void

In the absence of congressional action, the regulatory landscape continues to be defined by agency rulemaking. Recent SEC crypto news suggests a pivot toward more targeted, rule-based oversight under new leadership, but this falls short of the comprehensive legislative overhaul the industry demands. Without a clear congressional mandate, the SEC's authority over certain token classifications remains a subject of intense litigation.

The gap between legislative intent and regulatory reality is widening. While the SEC attempts to modernize its approach, the lack of a congressionally mandated framework creates a "limbo" where compliance is costly and legally perilous. This uncertainty is precisely what the stalled market structure bill was designed to resolve. Until cryptocurrency laws 2026 are finalized, US firms face a competitive disadvantage against their European counterparts who, despite stricter rules, at least enjoy regulatory certainty.

The Global Divergence in Crypto Tax Reporting

The contrast between the US and the rest of the world is starkest in the realm of crypto tax reporting. The US Treasury's own broker rules have faced delays and industry pushback, creating a fragmented system. Meanwhile, the EU's synchronized rollout of DAC8 means that 27 member states are now operating under a unified set of reporting standards.

This divergence risks creating a two-tiered global market. Institutional investors may increasingly favor jurisdictions with established cryptocurrency laws 2026 over the unpredictable US market. As the EU tightens its grip with clear compliance pathways, the US risks losing its status as the primary hub for digital asset innovation solely due to legislative paralysis.

What Lies Ahead for US Crypto Firms?

With the legislative door virtually shut until 2027, US crypto firms must adapt to a year of strategic defense. The focus will likely shift to state-level regulations and continued engagement with federal agencies to secure "no-action" letters or safe harbors where possible. However, the overarching message from Capitol Hill is clear: do not expect a federal rescue package this year.

As the EU marches forward with its transparency regime, the pressure on the US Congress will mount. But until the political deadlock breaks, American crypto innovation remains on pause, watching from the sidelines as the rest of the world writes the rules of the digital economy.