Fed Governor Highlights Stalemate in Crypto Regulatory Bill

Key Points:

• Federal Reserve Governor highlights crypto regulatory bill stalemate.
• Institutional factors drive market volatility.
• Congress disagrees on SEC and CFTC roles.

Federal Reserve Governor Christopher J. Waller indicates that optimism in crypto markets is diminishing, linked to recent institutional volatility rather than policy changes. The deadlock in congressional discussions over the CLARITY Act contributes to ongoing regulatory uncertainty.

Federal Reserve Governor Christopher J. Waller emphasized the ongoing stalemate in Congress over the crypto regulatory bill during his comments on February 9, 2026, citing disagreements surrounding agency authority and innovation balance.

The impasse in crypto regulation underscores the complexity of securing consensus between agencies, affecting market participants and delaying much-needed clarity.

Congressional Discussions

The congressional discussions on the Crypto-Asset Market Structure bill have stalled due to disagreement between the SEC and CFTC. Governor Waller pointed out that the absence of progress hinders establishing a clear framework and fosters regulatory uncertainty.

Market Volatility

Waller cited that institutional factors are influencing recent crypto market volatility, rather than any new policy shifts. While this uncertainty lasts, crypto companies face heightened compliance and regulatory risks as they navigate unclear guidelines.

The ongoing stalemate has significant implications for various cryptocurrencies, particularly BTC and ETH, which are affected by jurisdictional ambiguities. Waller’s announcements suggest investor uncertainty could impede further banking integration until legislative clarity is achieved.

Analysts point to historical precedents, such as the 2022 Biden Executive Order on digital assets, as a reminder of regulatory challenges. The delay in crypto regulation impacts investment strategies, with potential ripple effects across digital finance sectors, including DeFi protocols and Layer 1/2 technologies.

The Need for Balance

The discussion continues as stakeholders await solutions. Meanwhile, Waller’s remarks highlight the need for a balanced approach that accommodates innovation while ensuring investor protection, with industry watchful for any movements in policy or legislative changes.