Crypto Market Structure Bill Negotiations Enter Critical Phase
According to Alex Thorn, Head of Research at Galaxy, bipartisan negotiations on the crypto market structure bill have entered a crucial stage. While both parties have developed preliminary frameworks, significant differences remain on key issues.
Democratic Party's Regulatory Proposals
The Democratic Party has put forward three main regulatory demands regarding DeFi: platform frontends must comply with sanction requirements; Treasury should gain expanded authority for special oversight measures; and a regulatory framework should be established targeting pseudo-decentralized projects.
- Proposing a new crypto asset classification mechanism
- Planning enhanced investor protection provisions for crypto ATMs
- Mandating protocol developers to proactively disclose securities characteristics
- Setting a $200 million fundraising cap
The party also suggested implementing anti-circumvention measures to prevent projects from bypassing existing regulations through technical means. Enhanced consumer protection mechanisms, particularly investor rights under FTC jurisdiction, were emphasized.
Republican Party Accelerates Legislative Process
Republican lawmakers are pushing for formal committee review by the Senate Banking Committee on January 15th. However, multiple sources indicated unresolved issues remain, particularly regarding stablecoin yield handling and ethical guidelines.
Challenges for Bipartisan Cooperation
While both parties express willingness to advance legislation, analysts note structural disagreements persist on core issues like regulatory authority division and enforcement mechanisms. The bill's ultimate success will depend on compromises between Treasury and SEC jurisdictional boundaries.