The passage of the US crypto regulation bill is just the beginning: rulemaking could take years or even span multiple presidential terms

The advancement of the US Cryptocurrency Market Structure Act once again reminds the industry of a reality: there is a significant time gap between legislative approval and the implementation of regulations. Justin Slaughter, Vice President of Regulatory Affairs at Paradigm, recently stated that even if the bill is ultimately passed and signed by the president, the development of supporting rules could still take several years, and the implementation cycle might span more than one presidential term. This means that the “clear regulatory framework” anticipated by the crypto industry may still be a long way off.

Current Status of the Bill: Uncertainty Amid Multiple Stakeholder Negotiations

The current Cryptocurrency Market Structure Bill has entered the Senate committee stage, with bipartisan participation in its drafting. According to the latest schedule, the bill will be submitted to the Senate Banking Committee for discussion this week, while a hearing originally scheduled by the Senate Agriculture Committee has been postponed to January 27. These changes reflect ongoing significant uncertainties in the legislative process, with negotiations on the bill’s content still underway.

Complexity of Rulemaking: 45 Rules to Be Promoted by Multiple Agencies

Number and Complexity of Rulemaking

The bill itself involves approximately 45 specific rules, which need to be advanced by different regulatory agencies. This not only entails a substantial workload but also requires coordination and balancing among various regulators, which is inherently a time-consuming process.

Standard Steps in the Rulemaking Process

According to the US system design, rulemaking typically includes three stages:

• Drafting proposed rules
• Public consultation
• Issuance of final rules with legal effect

Each stage takes time, especially the public consultation phase, which often attracts extensive feedback from various stakeholders, further prolonging the entire process.

Historical Reference: Lessons from the Dodd-Frank Act

Slaughter cited the Dodd-Frank Act as an example to illustrate this point. After its passage in 2010, the development of its supporting rules was completed gradually over 3 to 8 years, with some aspects still being adjusted today. In other words, from the bill’s passage to full implementation of the rules, it took at least three years, and some adjustments have continued for over a decade.

This provides a realistic reference for current crypto regulation legislation. Even if the Crypto Market Structure Bill passes smoothly, its actual “landing” will not happen quickly.

Market Realities and Challenges

What does this mean for crypto companies, institutional investors, and ordinary users?

This indicates that the crypto industry may still face a lengthy policy transition period. Even if the bill is passed this year, a clear compliance environment might not be established until 2027 or later.

Industry Long-term Preparation

From recent market developments, crypto companies have already begun preparing for compliance. For example, Polygon Labs’ acquisition of a crypto startup related to payments aims to provide compliant payment services under future regulatory frameworks. This reflects industry awareness that compliance is not only a legal requirement but also a key factor for long-term competitiveness.

Summary

The progress of the US Cryptocurrency Market Structure Bill is indeed a positive signal, but the industry must recognize reality: Passing the bill is just the beginning, not the end. From legislation to rule implementation, it could take 3-5 years or even longer. During this period, the market will experience ongoing policy uncertainties and regulatory adjustments. For crypto enterprises and investors, it is more realistic to prepare for long-term compliance and understand the evolution of rules than to expect an “all-in-one” regulatory framework overnight.