Is This Development Hindering the Upward Trend in the Cryptocurrency Market? Galaxy Digital Analyst Speaks Out

The postponement of the crypto market structure bill, which was scheduled to be debated in the US Senate, deepened regulatory uncertainty, putting pressure on crypto assets and related stocks.

Galaxy Digital Research Director Alex Thorn said the Senate Banking Committee’s postponement of its planned review meeting on the Crypto Market Structure Act revealed significant disagreements between Congress and the industry on fundamental issues, particularly stablecoin yield mechanisms and DeFi regulation.

The decision to postpone the proceedings came just hours after Coinbase CEO Brian Armstrong withdrew his support for the bill. Armstrong publicly announced his opposition to the provisions regarding tokenized securities, DeFi restrictions, and stablecoin yields. Following this, Senate Banking Committee Chairman Tim Scott announced the postponement of the hearings; however, no new schedule was shared. With the Senate going on recess next week, discussions are expected to resume no earlier than January 26–30.

According to Thorn, the draft text was released late at night within just 48 hours, and over 100 amendments were proposed. The emergence of new points of contention until the last minute severely hampered the achievement of political consensus.

In the markets, crypto assets generally declined following the postponement news. Bitcoin and Ethereum fell by approximately 2% during the day, while crypto-related stocks in the US also saw selling pressure. Coinbase shares fell by 6.5%, Robinhood by 7.8%, and Circle by 9.7%.

In his analysis, Thorn stated that while there was broad agreement on the “market structure,” a significant political divide emerged on non-core but highly sensitive issues such as stablecoin yields, DeFi compliance, and granting the SEC authority over tokenized securities. Thorn concluded, “The apparent differences aren’t huge, but the real chasm is deep.”

*This is not investment advice.