Senate Committee Chair pushes for Crypto Market Structure Bill, Bank Supervision Framework becomes focus

The U.S. Senate has gained a breakthrough in the long-standing regulatory battle in the cryptocurrency industry. The Senate Agriculture Committee announced its draft version of the Crypto Market Structure Act on Wednesday evening and plans to hold a hearing next Tuesday. This move signifies that, following the near-collapse of the Senate Banking Committee version due to numerous controversies, this bill has regained the opportunity to advance.

John Boozman, chairman of the Agriculture Committee, stated in a release that he values collaboration with Senator Cory Booker and his team, and appreciates their suggestions in promoting consumer protection and strengthening the CFTC’s (Commodity Futures Trading Commission) authority. This reflects the industry’s long-standing expectation for bipartisan cooperation—support from both camps is crucial at this key moment in shaping the regulatory framework.

Crypto Market Structure Act: From Controversy to New Opportunities

The new version of the bill embodies a more crypto-friendly stance by the Republican side in several aspects. It maintains legal protections for developers—as long as they do not control customer assets—and enhances the role of the CFTC as the regulator of spot markets (such as Bitcoin), which are welcomed by the industry. However, this legislation, which grants new powers, has not received the broad bipartisan support expected, posing a challenge to securing enough votes in the Senate.

The Senate Banking Committee faced greater resistance in pushing the bill forward. A scheduled hearing last week was nearly postponed at the last minute. Key disagreements include whether stablecoins can offer returns to customers, and how DeFi platforms can be integrated into the existing financial regulatory system. Coinbase initially expressed support for this version but later withdrew due to controversies over certain provisions.

Bipartisan Stances and the Power Struggle in Regulation

Democratic lawmakers generally worry that the current framework does not adequately protect retail investors. Especially in the context of President Donald Trump’s expressed reluctance to appoint Democrats to key positions in regulators like the CFTC and the SEC, Democrats have raised questions about the regulatory enforcement capabilities of this Republican-led bill.

Meanwhile, White House crypto advisor Patrick Witt and others have publicly announced that the U.S. government is about to introduce a comprehensive cryptocurrency regulatory framework. This move indicates that, to some extent, the passage of the Crypto Bill is an inevitable trend—only the timing and manner remain uncertain.

Market Regulation Expansion and New Industry Realities

Additionally, the SEC recently issued new guidelines clarifying that tokenized stocks are also subject to existing securities and derivatives regulations, regardless of whether they are registered on the blockchain. This suggests that regulators are further expanding their oversight, with a cautious attitude toward synthetic stock products—aiming to prevent such high-risk products from reaching retail investors while encouraging issuer-sponsored tokenized structures.

In this series of policy adjustments, NFT projects like Pudgy Penguins are also facing a new market environment. This project has shifted from speculative “digital luxury goods” to a diversified consumer IP platform spanning retail, gaming, and token ecosystems, indicating industry participants are adapting to a more regulated future.

Legislative Path and Industry Outlook

If the Agriculture Committee proceeds with the markup process as scheduled on January 27, it will mark the first time in years that a crypto-related bill has reached this stage in the Senate. Despite facing political and operational hurdles, industry hopes remain high for this new draft—compared to the clearer regulatory framework for spot markets of cryptocurrencies like Bitcoin.

Ultimately, whether this version passes or not, the bill will need support from at least seven Democratic senators to become law. Industry analysts generally expect that once it passes this key committee, prospects for its approval in the House will improve—last year, the House already passed a similar “Digital Asset Market Clarity Act.” As consensus on crypto regulation between the U.S. government and Congress continues to grow, this bill led by the Senate Agriculture Committee chairman is expected to become an important milestone in advancing industry standardization by 2026.