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

The delay on the bill for crypto market structure that would have been debated in the US Senate, exacerbated regulatory uncertainty, which put pressure upon Crypto assets and associated stocks.

A recent delay on the Senate Banking Committee’s delayed review of its planned review meeting on Crypto Market Structure Act prompted “significant disagreements between Congress and the industry over fundamental issues,” particularly stablecoin yield mechanisms and DeFi regulation, said Galaxy Digital Research Director Alex Thorn.

The decision to defer the proceedings came just hours after Coinbase CEO Brian Armstrong resigned his support for the bill. Armstrong has publicly stated his opposition to the provisions regarding tokenized securities, DeFi restrictions and stablecoin yields. In the wake of this, Senate Banking Committee Chairman Tim Scott announced that hearings were delayed; however no new schedule was published. As the Senate is on recess next week, negotiations should resume no earlier than January 26–30 as discussions are expected to resume.

Thorn says that the draft text was published late at night in just two days, and more than 100 amendments were proposed. But the rise of new points of contention until the last minute severely hampered political consensus.

Crypto stocks were generally down in the markets after news of postponement, and crypto assets tended to decline. In the day, Bitcoin and Ethereum fell about 2% of their value; in the US, crypto-related stocks also experienced selling pressure. Coinbase shares were down 6. Robinhood by 7 – 5%, 65%, 5. Circle by 9 and 8%, as well as 8 per cent for . 7% .

Thorn argued that while there was “a broad agreement on the “market structure” in his analysis, an important political divide developed over non-core but very sensitive issues like stablecoin yields, DeFi compliance and giving the SEC control over tokenized securities. The apparent differences aren’t huge, Thorn concluded ‘The true chasm is deep and the real crisis is very deep. Paraphrasingr ’It is.

*This is not investment advice.

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