U.S. Crypto Market Structure Bill Delayed Amid Legislative Focus Shift

The U.S. Crypto Market Structure Bill faces a delay until late February or March as the Senate Banking Committee shifts focus, impacting potential legislative progress in digital assets regulation.

This delay affects investor confidence and market stability, compelling stakeholders to address key issues around CFTC authority and SEC oversight while awaiting comprehensive digital assets legislation.

Senate Banking Committee Prioritizes Housing Over Crypto Legislation

The U.S. Crypto Market Structure Bill experienced a setback due to a shift in legislative priorities. Senate Banking Committee Chairman Tim Scott postponed the bill’s markup to allow focus on housing affordability. The Senate Agriculture Committee’s version remains on schedule, with a vote expected on January 27.

This shift delays potential regulatory clarity for digital assets, possibly affecting market sentiment. With key amendments still under negotiation, stakeholders express concern about implications for CFTC authority and stablecoin operations. Cynthia Lummis, Senate Banking Subcommittee on Digital Assets Chair, told CNBC, “The markup could take a couple of months,” potentially delaying to late February or March.

Summer Mersinger, Blockchain Association CEO, emphasized the need for continued dialogue and collaboration, urging stakeholders to “stay at the table” to craft comprehensive legislation.

Market Impact: Bitcoin Declines as Senate Delays Vote

Did you know? The Senate’s shift in focus to housing aligns with past legislative adjustments, often delaying market-specific bills. This pattern highlights challenges in balancing diverse policy priorities and underscores the complexity of navigating digital asset regulation.

As of the latest data, CoinMarketCap reports Bitcoin (BTC) trading at $89,548.84, boasting a market cap of $1.79 trillion. The asset experiences short-term growth of 1.25% but sees a 7.54% decrease over seven days. A notable 18.66% drop occurred over 90 days, contrasting its 5.40% rise over 60 days. Despite these fluctuations, Bitcoin’s market dominance remains at 59.11%.

Coincu research points out potential repercussions of this delay, emphasizing the importance of regulatory clarity for fostering innovation. Lack of progress could hinder growth, with concerns that extended uncertainty might deter investments. Historical patterns suggest efficient legislation could invigorate crypto markets, stressing the role of balanced, clear policy enactments.