TD Cowen Foresees U.S. Crypto Legislation by 2026

TD Cowen predicts that major U.S. crypto legislation, the CLARITY Act, may be enacted by Congress as early as 2026, significantly shaping crypto-market regulation.

The potential enactment will influence regulations on crypto custody, trading, and staking, impacting how Bitcoin  BTC +0.59% , Ethereum  ETH -0.12% , and other digital assets are classified and governed.

TD Cowen’s Crypto Forecast

TD Cowen expects major U.S. crypto market‑structure legislation centered on the CLARITY Act by 2026. This projection may shift to 2027, impacting BTC, ETH, and broader crypto market regulation. The CLARITY Act involves Congress, the SEC, and CFTC, aiming to define crypto asset classifications and allocate regulatory authority.

“Congress is expected to pass crypto market structure legislation by 2026, but there’s a material risk of slippage into 2027.” — Jaret Seiberg, Managing Director, TD Cowen. Source

The proposed legislation could significantly affect the crypto market by clarifying regulatory oversight and market rules. Its impact includes changes in financial custody and trading practices, profoundly influencing platforms. Financial implications point to potential changes for broker-dealers and exchanges from SEC innovation exemptions. These could modify market structures and pave the way for crypto-friendly banking charters.

Stakeholders expect significant shifts in regulation, affecting both custody and trading platforms. They await clarity on asset classification. TD Cowen’s outlook anticipates regulatory adaptations fostering tokenized securities and potential financial integration with the Federal Reserve, potentially altering the financial landscape and shaping future crypto policies.