1inch Lawyer Says US Agencies, Not Congress, Will Shape Crypto Rules

With midterms underway, regulatory momentum is expected to come from federal agencies rather than new legislation.

A lawyer affiliated with 1inch has offered a view on how US crypto regulation is likely to take shape over the coming months. According to the attorney, federal agencies rather than lawmakers will drive the next phase of policy development. The comments were reported as the 2026 midterm elections unfold across the country.

Midterm election cycles typically slow legislative activity on Capitol Hill. Lawmakers often focus on campaigning rather than drafting or passing new bills. That dynamic, the lawyer suggests, makes agency-led rulemaking a more realistic near-term path for crypto policy than new statutes from Congress.

Federal agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission have long played central roles in shaping how digital assets are treated under existing law. Both bodies have issued guidance, pursued enforcement actions, and weighed in on how tokens, exchanges, and custody arrangements fit within current frameworks. The 1inch lawyer's comments suggest this pattern is expected to continue, with agencies filling gaps left by a slower-moving legislature.

The broader crypto industry has pushed for years for clearer statutory rules covering market structure, stablecoins, and token classification. Industry participants have argued that reliance on agency interpretation creates uncertainty, since guidance can shift between administrations or leadership changes. Still, in the absence of new legislation, agency action remains the primary mechanism through which policy gets made in practice.

The timing of these comments, alongside the midterm elections, adds context to the broader regulatory outlook. Election cycles can delay bipartisan deals on complex topics like digital asset oversight, since lawmakers are less inclined to spend political capital on contentious bills during campaign season. This has historically left agencies with more practical influence over how rules are applied day to day.

The view attributed to the 1inch lawyer reflects a broader sentiment among legal observers who track US crypto policy. Many have noted that Congress has struggled for years to pass comprehensive digital asset legislation, despite repeated attempts. Bills covering stablecoins and market structure have been introduced in past sessions, but consensus has remained elusive. Agency action, by contrast, does not require the same level of political coordination and can move more quickly.

This dynamic matters for companies operating in the decentralized finance space, including platforms like 1inch itself. Aggregators and decentralized exchanges often operate in regulatory gray areas, where agency interpretation can directly affect how they structure products and compliance programs. Clarity, whether from Congress or agencies, remains a priority for firms navigating US markets.

Market Impact

For crypto firms, continued reliance on agency-led regulation means compliance strategies will likely need to track evolving guidance rather than a fixed statutory framework. This can create ongoing uncertainty for exchanges, DeFi protocols, and token issuers trying to plan long-term operations in the United States.

Market participants may also watch agency enforcement actions and rulemaking proposals more closely than pending legislation during the midterm period. Any signals from the SEC or CFTC could carry outsized weight while Congress remains focused on elections rather than new crypto-specific bills.

As the midterm elections play out, attention within the crypto industry is likely to stay fixed on federal agencies rather than Capitol Hill for near-term regulatory direction.

Frequently Asked Questions

Why does a 1inch lawyer think agencies will drive crypto regulation?

The lawyer points to the slower pace of congressional activity during midterm election cycles, which makes agency rulemaking a more practical near-term path for crypto policy.

Which agencies are typically involved in US crypto regulation?

The Securities and Exchange Commission and the Commodity Futures Trading Commission are among the main federal bodies that have issued guidance and pursued enforcement related to digital assets.

Does this mean Congress won't pass crypto legislation at all?

The comments suggest legislative action is less likely in the near term during the midterms, not that it is ruled out entirely in the future.

How does this affect companies like 1inch?

Decentralized exchange platforms and similar firms may need to continue adapting to agency guidance rather than a fixed legal framework, affecting compliance planning.