As of December 25, according to Gate market data, BTC/USDT is currently trading at $87,880.8, down 1.77% over the past 24 hours. ETH/USDT has rebounded slightly, climbing back above $2,900 to $2,937.59. Gate Research Institute notes that the crypto market continues to consolidate in a weak pattern, with risk appetite remaining low.
Meanwhile, a legislative showdown that could shape the future of the cryptocurrency industry is unfolding on Washington’s political stage. Whether the US Congress can pass comprehensive crypto legislation by 2026 has become a focal point for the industry.
01 Political Maneuvering: The Crypto Industry’s Funding Offensive and Legislative Barriers
The cryptocurrency industry is engaging in US politics on an unprecedented scale. According to Bloomberg, crypto-focused super PACs are raising about $263 million to influence the 2026 midterm elections.
This amount is nearly double the largest SPAC Fairshake’s investment in 2024, and even slightly higher than the total spending by the entire oil and gas industry in the previous election cycle.
The primary goal of these funds is to push for the passage of the crypto market structure bill. This legislation would overhaul the regulatory framework for digital assets and could grant greater authority to the Commodity Futures Trading Commission, which is seen as more favorable to the crypto industry.
Industry demands extend beyond market structure reform, including adjustments to crypto tax policies, anti-money laundering and sanctions-related rules, as well as regulatory frameworks for decentralized exchanges.
02 Racing Against Time: Dual Pressure from Government Shutdown and Legislative Window
The legislative process is under intense time pressure. Thom Tillis, Senator from North Carolina and a Republican member of the Senate Banking Committee, warned that Congress may have only a few months left to advance crypto legislation.
He stated bluntly: "I’m not optimistic about making further progress on digital assets, stablecoins, or cryptocurrencies in this Congress."
The US government shutdown has further complicated the legislative situation. The shutdown has lasted 36 days—a record high—and is seriously delaying Congressional efforts to advance the crypto market structure bill. White House digital asset advisor Patrick Witt pointed out that while President Trump still demands a final draft by 2025, widespread departmental shutdowns have severely limited bill drafting.
Blockchain Association CEO Summer Mersinger also acknowledged that the likelihood of the bill being postponed to 2026 is rising.
03 Market Update: Crypto Assets Volatile Amid Uncertainty
Political uncertainty is directly reflected in market prices. The overall crypto market is in a weak consolidation phase. Bitcoin’s price is fluctuating between $87,500 and $88,000, with technical resistance overhead.
Ethereum has stabilized around $2,900, rebounding into the $2,950–$2,970 range, but the overall trend remains corrective.
The market Fear & Greed Index is holding at 24, indicating "Extreme Fear", showing investors lack confidence in the short-term outlook. At the same time, OTC selling pressure is showing signs of marginal relief, suggesting that large-scale selling is subsiding and the market may be transitioning from a "concentrated sell-off" phase to one of "wait-and-see and selective allocation."
Notably, some altcoins are showing strong performance. For example, the CXT token surged about 219.06% in 24 hours, trading at $0.018496; the ICNT token rose 16.73%, quoted at $0.48522.
04 Partisan Divide: Republican Support vs. Democratic Skepticism
Crypto legislation faces clear partisan divisions. Republicans generally take a more favorable stance toward the industry, while Democrats remain more cautious. Chainlink Labs co-founder Sergey Nazarov noted that Republicans—including Senate Banking Committee Chair Tim Scott—have openly aligned themselves with industry priorities.
In contrast, Democrats have raised sharp concerns about crypto’s role in money laundering and decentralized finance. This divide is directly affecting the legislative process. Bipartisan support, which the industry hopes for, is proving elusive—especially with midterm elections approaching, as both parties are inclined to take opposing positions to shore up their bases.
However, the industry’s massive funding and newfound political clout are forcing at least some Democrats to reconsider their positions. Even previously hardline Ohio Democrat Sherrod Brown has softened his critical rhetoric.
05 Looking Ahead to 2026: The Dual Variables of Election Politics and Policy Shifts
The year 2026 will be critical for the fate of crypto legislation. As the midterms approach, political factors will play an increasingly prominent role in the legislative process. Caixin’s "2026 New Year Review and Outlook" points out that as Trump gears up for the November midterms, his policy adjustments will directly impact asset performance across the board.
The Trump administration has already put cryptocurrency on its policy agenda. In March 2025, Trump signed an executive order designating roughly 210,000 bitcoins held by the federal government as part of the national strategic reserve. This move underscores the government’s focus on digital assets and lays the groundwork for further legislation.
However, the seizure of $1.5 billion worth of bitcoin from the Chen Zhi telecom fraud group by US authorities has put transaction security in the spotlight. These security concerns may become a powerful argument against sweeping crypto legislation, especially among Democrats.
Outlook
As of December 25, Bitcoin’s price on Gate has slipped below $88,000, while Ethereum continues to struggle around the key $2,950 level. These numbers are more than just fluctuations on a trading chart—they are a real-time reflection of Washington’s political climate.
With the midterm elections drawing closer, the crypto industry’s lobbying funds are pouring into Washington, with super PAC budgets totaling $263 million aiming to rewrite the legislative agenda. At the same time, the record-setting 36-day government shutdown has brought bill drafting to a standstill.
Senator Thom Tillis’s warning still resonates: "I’m not optimistic about making further progress in this Congress." Yet, market demand won’t wait for the pace of politics. Investors must be prepared to move forward amid uncertainty.
