What Does $85,000 Bitcoin Mean for Regulatory Outlook? Senate Delays Crypto Hearings Until 2026

The U.S. Senate Banking Committee’s decision to postpone cryptocurrency market structure hearings has stirred significant turbulence across digital asset markets. What was originally scheduled to occur this week has now been pushed back to early 2026, leaving the industry grappling with prolonged regulatory uncertainty. According to a spokesperson for Senate Banking Committee Chair Tim Scott, the deferment stems from ongoing bipartisan negotiations aimed at developing comprehensive digital asset legislation.

The market’s immediate response painted a stark picture of investor sentiment. On Monday, approximately $150 billion in capital rapidly withdrew from cryptocurrency exchanges during late-session trading, reflecting heightened anxiety about the legislative timeline. Bitcoin, which had recently climbed to stronger levels, experienced a sharp pullback, sliding approximately $5,000 to settle just above the $85,000 mark—a level that translates to roughly ₹70,80,000 for investors tracking INR valuations. This pullback underscores how legislative uncertainty directly influences price movements in the crypto space.

The postponement extends beyond mere calendar adjustments. Chairman Scott emphasized that the goal remains creating robust framework legislation that would provide market clarity while positioning the U.S. as a global leader in cryptocurrency innovation. However, progress on the legislative front has proven slower than anticipated. Crypto researcher Paul Barron voiced concerns that the timeline presents additional risks, particularly given that midterm elections scheduled for 2026 will reshape congressional composition—affecting all House seats and approximately 34 Senate positions. This political calendar could further complicate the passage of bipartisan digital asset measures.

Industry stakeholders had hoped 2025 would bring meaningful regulatory advances. The delay represents a notable setback for those expectations, as the sector faces another year of operating within ambiguous regulatory parameters. As lawmakers return from holiday recess to address immediate government funding priorities, cryptocurrency market participants are left waiting for substantive movement on digital asset legislation. The confluence of regulatory delays and market volatility suggests the sector’s trajectory remains tightly bound to Washington’s legislative calendar through at least 2026.