What Could Happen with the Crypto Market Structure Bill?
The crypto industry eagerly awaits the outcome of the Senate Banking Committee’s markup of the crypto market structure bill, scheduled for January 15. According to Alex Thorn, Head of Research at Galaxy Research, there’s a “decent 60%” chance this bill could pass. But as always, the odds are subject to change given the contentious dynamics within the Senate.
Key Points of Debate in Crypto Regulation
One of the main points of contention revolves around Decentralized Finance (DeFi). Amid bipartisan discussions, Democrats have made three significant requests:
- DeFi platforms must comply with U.S. sanction regulations and restrict sanctioned entities such as North Korea, facing liability otherwise.
- Granting the U.S. Treasury “special measures” authority over DeFi exchanges.
- Regulators should define rules for “non-decentralized” DeFi systems.
These points caused delays previously in September 2025 and could be deal-breakers at the January committee markup. Industry stakeholders like venture capitalist Nic Carter call these proposals “pretty reasonable,” though significant disagreements remain.
Additional Challenges in Passing the Bill
There are also calls for greater protections such as:
- Imposing a $200 million cap on the amount issuers can raise.
- Strengthening investor protections.
Furthermore, issues such as stablecoin yields and the impact on national security complicate the situation. The industry views stablecoin regulation as critical, especially with China’s advancements threatening U.S. global dominance in financial sectors.
How Politics Could Influence the Bill
With the 2026 elections looming, political motives play a role in the legislation’s pace. Democrats, optimistic about regaining control, may preemptively slow the bill’s progress. In turn, Republicans are concerned impeachment debates surrounding Trump could impact their majority and influence on the crypto legislation.
Kalshi, a predictions platform, currently estimates a 79% chance of the bill passing prior to 2027 but only a 49% chance by May.
Why Crypto Enthusiasts Should Pay Attention
The crypto market remains volatile, and the passing or rejection of this bill could have significant financial implications. Investors keen on staying ahead may consider preparing for potential outcomes by diversifying their portfolios.
For those exploring the best tools in their crypto journey, check out the Ledger Nano X, a secure and trusted hardware wallet for safely storing cryptocurrencies. Ensure you stay protected and ready for any market changes.
Final Thoughts
The journey ahead for the crypto market structure bill is complex and uncertain. With pivotal decisions set to occur in January, this could be a defining moment for the future of DeFi and broader crypto regulations in the United States. Stay tuned and prepared!
