Mike Novogratz Warns Crypto Market Structure Bill Collapse Could Reshape Industry

Galaxy CEO Mike Novogratz has sounded the alarm on the potential derailment of the crypto market structure bill, signaling significant risks to the industry’s regulatory future. The executive’s warning underscores growing tensions between cryptocurrency advocates and traditional banking interests over how digital asset platforms should operate.

Central Dispute: Stablecoin Yields and Banking Pressure

The sticking point in negotiations revolves around whether crypto platforms can offer yield rewards on stablecoins—a practice that banks view as a direct threat to their business model. According to ChainCatcher, financial institutions are actively opposing these offerings, fearing competitive pressures if such mechanisms remain legal. Mike Novogratz argues that this resistance reflects a deeper problem: U.S. politics is overriding practical policy considerations.

Should the market structure bill fail, Novogratz holds both Republican and Democratic senators aligned with banking interests responsible. The loser, he contends, will ultimately be the American consumer—left without clearer regulatory guardrails for digital assets.

Macro Headwinds: Dollar Weakness and Market Sentiment

Novogratz has connected the crypto market’s struggles to broader economic signals. Rising gold prices suggest the U.S. dollar is hemorrhaging its historical status as the world’s reserve currency. Simultaneously, the ongoing sell-off of long-term Treasury bonds signals mounting investor concerns about fiscal stability—conditions that typically create demand for alternative stores of value like cryptocurrency.

Yet Bitcoin has underperformed relative to these macro tailwinds. Current market data shows BTC trading at $72.73K as of February 4, 2026, down from earlier expectations. The sluggish price action stands in sharp contrast to the supportive backdrop Novogratz identifies.

Technical Resistance and Path Forward

For Bitcoin to regain momentum, Novogratz suggests the asset must clear significant resistance between $100,000 and $103,000. Until BTC reclaims this range, the technical structure will remain compromised, leaving investors without confirmation of a genuine uptrend.

Mike Novogratz’s comments reflect the mounting complexity facing the crypto industry—caught between regulatory ambitions, entrenched financial interests, and volatile market technicals. The fate of the market structure bill could prove pivotal in determining whether this industry matures under clear rules or faces continued legal uncertainty.