Viewpoint: U.S. Senate Postpones Cryptocurrency Market Structure Bill; Regulatory Uncertainty Rises, Weighing on Related Assets
Svmuu News: Alex Thorn, Head of Research at Galaxy Digital, stated that the postponement of the U.S. Senate Banking Committee’s scheduled hearing on the Crypto Market Structure Act highlights deep divisions between Congress and the industry on several key issues, particularly regarding stablecoin yield mechanisms and DeFi-related provisions.The postponement came hours after Brian Armstrong, CEO ofCoinbase, withdrew his support for the bill. Armstrong publicly opposed the bill’s language regarding tokenized securities, DeFi restrictions, and stablecoin yields.Senate Banking Committee Chairman Tim Scott subsequently announced the postponement of the hearing, though no new schedule has been released. As the Senate is in recess next week, the earliest possible resumption could be between January 26 and 30.Alex Thorn noted that within just 48 hours, the draft bill was released late at night, over 100 amendments were submitted, and stakeholders continued to uncover new points of contention at the last minute, significantly increasing the difficulty of political coordination.In the markets, following the announcement of the postponement, crypto assets broadly declined, with the Bitcoin and Ethereum both falling by approximately 2% that day; related U.S. stocks came under pressure as well, with Coinbase down 6.5%, Robinhood down 7.8%, and Circle down 9.7%.In his analysis, Thorn argued that while there is already a significant degree of consensus on “market structure” itself, non-core yet highly sensitive issues—such as stablecoin yields, DeFi compliance, and granting the SEC regulatory tools in the tokenized securities sector—have created an insurmountable political divide. “The apparent differences may seem small, but the underlying divide is deep.”
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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