Crypto Bill Delay: 2026 & Beyond? | Citi Analysis

WASHINGTON, January 30, 2026

Crypto Bill Faces DeFi Roadblock, Stablecoin Standoff

Key legislation aimed at bringing clarity to the crypto market is hitting turbulence, with disagreements over decentralized finance possibly delaying the process.

• Citi analysts say the CLARITY Act could still pass this year, but delays beyond 2026 are increasingly likely.
• the biggest hurdle remains defining when decentralized finance protocols and developers become regulated entities.
• Stablecoin rewards are also a sticking point, tho potential compromises are being discussed.
• The White House is set to host talks with industry leaders on february 2nd to address the stalled legislation.

The future of cryptocurrency regulation in the United States hangs in the balance as the CLARITY Act navigates a complex path through Congress. The bill, intended to establish a nationwide framework for digital assets, is facing meaningful headwinds, particularly concerning the treatment of decentralized finance (DeFi). A clear regulatory path is crucial for broader blockchain adoption, according to recent analysis.

defi Definitions Pose Biggest challenge

The core of the problem lies in determining at what point decentralized protocols, software, and the individuals developing them should be considered regulated service providers. Citi analysts highlighted this as the greatest obstacle to progress on the crypto market structure legislation, according to a report. This debate is proving particularly thorny, as it strikes at the heart of what makes DeFi unique – its permissionless and often anonymous nature.

Stablecoin Rewards spark Debate

While the DeFi question looms large,disagreements over stablecoin rewards are also contributing to the delay. Though, analysts suggest this issue might potentially be more easily resolved. Potential solutions being floated include time-limited yield offerings and the exploration of alternative incentive structures. Finding common ground on stablecoins is seen as critical,given their growing role in the crypto ecosystem.

Senate Advances Bill, but Partisan Divide Raises Concerns

On Thursday, January 29th, the U.S. Senate agriculture Committee voted to advance its version of legislation creating a nationwide regulatory framework for cryptocurrencies. Though, the strictly party-line vote casts doubt on its chances of passing the full Senate. The outcome underscores the deep political divisions surrounding the issue.

Banking Committee Faces Intense lobbying

Progress in the Senate Banking Committee has been even more difficult. That panel is grappling with related legislation that has become a battleground between banks and crypto companies over the issue of stablecoin rewards. This intense lobbying effort is slowing momentum for a broader crypto market structure bill.

Securities Regulation Provisions Need Reconciliation

The provisions of the crypto bill addressing securities regulation fall under the jurisdiction of the Senate Banking Committee and will need to be merged into a final package. This reconciliation process will be a significant test of whether a bipartisan agreement can be reached, overcoming both partisan and jurisdictional hurdles.

What defines a regulated service provider in the DeFi space? The central question stalling the CLARITY Act is determining when decentralized protocols and their developers cross the line into regulated territory, a point of contention between lawmakers and industry participants.

White House to Host Industry Talks

The white House’s crypto council will host closed-door talks with banking and cryptocurrency executives on Monday, february 2nd, to address the stalled crypto legislation. The meeting will particularly focus on interest and rewards paid on dollar-pegged stablecoins, reflecting growing concern that stablecoin policy could derail broader reform efforts.

Recent PYMNTS Intelligence and Citi research, detailed in the report “Chain Reaction: Regulatory Clarity as the Catalyst for Blockchain Adoption,” emphasizes that regulation will shape blockchain’s future. The report suggests that evolving guidance is laying the groundwork for safe and scalable blockchain adoption,while acknowledging that implementation challenges remain.