As the United States heads into the 2026 midterm elections, 1inch deputy general counsel Maylea Ma told Cointelegraph that the primary drivers of upcoming crypto regulation will be federal agencies – the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the Treasury – rather than Congress. Ma highlighted that while legislative efforts such as the CLARITY Act have stalled, agency engagement is increasing, though it does not provide the statutory certainty the industry seeks.

Agency activity outpaces legislative progress

According to the Cointelegraph report, the SEC has recently issued a proposed fundraising framework that includes exemptions for certain token offerings and a safe‑harbor provision to avoid classification as investment contracts. In September, the agency also updated staff guidance on token buybacks, network operations and staking receipt tokens. Meanwhile, the CFTC submitted a comprehensive crypto market regulatory plan for White House review on September 17, shortly after the Senate failed to advance the CLARITY Act.

Industry concerns over regulatory uncertainty

Michael Ho, co‑founder of D3 and the team behind Doma Protocol, warned that the reliance on agency guidance creates uncertainty for institutional capital. He argued that without clear statutory rules, investors remain cautious about committing to tokenized real‑world assets. Ho echoed Ma’s sentiment that a durable law, immune to shifts in administration, is essential for attracting serious capital.

What to watch next

The outcome of the midterm elections could influence the composition of Congress and the pace of any future legislative attempts to codify crypto regulation. Observers will monitor whether the SEC, CFTC or Treasury issue further guidance that could become de‑facto standards, and whether any new bills emerge to address the CLARITY Act’s stagnation. Institutional investors will also watch for signals that regulatory risk is decreasing enough to justify larger allocations to tokenized assets.