legislation

According to market news, Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), stated at a Senate Banking Committee hearing that while his agency has the authority to provide regulatory clarity for the crypto industry through rulemaking, such rules lack "future adaptability" and can easily be overturned by subsequent administrations. Therefore, "a solid foundation in law is needed to prevent future backtracking."Atkins noted that the SEC currently has "quite broad powers" to advance rulemaking through the "Project Crypto" agenda, but he emphasized that "Congress needs to enact good legislation" to support these rules. Although progress on the Senate's bill to regulate the cryptocurrency market structure has been intermittent, one of the main Democratic negotiators, Senator Mark Warner, expressed at the hearing that he still hopes this work can make progress.

The chairman of the U.S. Securities and Exchange Commission (SEC) testified before the House Financial Services Committee that it will reduce regulatory burdens through three initiatives to "make IPOs great again," including: streamlining disclosures based on materiality, reducing politicized issues at shareholder meetings, and providing litigation alternatives for public companies. He emphasized that the federal regulatory framework for crypto assets is "seriously outdated," supports Congress in passing the CLARITY Act, and collaborates with the CFTC to develop token classification and on-chain trading exemption programs through "Project Crypto."At the same time, the SEC is conducting a comprehensive review and cutting costs of systems like the Consolidated Audit Trail (CAT), reducing PCAOB budgets and board compensation, and combating overseas manipulation and fraud through cross-border enforcement, reaffirming its core mission to protect investors and enhance market efficiency.

According to reporter Eleanor Terrett, a Democratic staffer stated that the atmosphere of the relevant meeting was "positive," and described it as "the most productive Democratic meeting so far." Chuck Schumer also attended the meeting, emphasizing the importance of industry participation and calling for the momentum of legislative progress to be maintained and for the bill to be passed as soon as possible.Although there are still clear demands regarding certain provisions within the Democratic Party, attendees generally believe that this legislative effort, which was once considered "on the verge of being shelved" a few weeks ago, is currently "far from over," and there is still potential for progress.

The American Bankers Association (ABA) issued a statement regarding the cryptocurrency industry meeting held at the White House that day. The meeting aimed to advance the legislative process related to cryptocurrency market infrastructure and invited representatives from cryptocurrency companies and traditional banking to participate together.In the statement, the ABA thanked the Trump administration for facilitating this "constructive dialogue" and noted that the meeting acknowledged the traditional banking industry's concerns regarding digital asset legislation. However, the ABA also emphasized that any related legislation must support local credit supply aimed at households and small businesses to maintain the safety and soundness of the financial system.Additionally, the ABA called on congressional senators to close regulatory loopholes that might allow cryptocurrency companies to pay consumers interest or returns on stablecoins, viewing this issue as one of the core differences between traditional banking and the cryptocurrency industry. The banking sector is concerned that such arrangements could exacerbate deposit outflows or force banks to raise deposit rates to compete. Reports indicate that the White House is expected to continue pushing for follow-up consultations to seek a compromise between supporting digital asset innovation and maintaining the traditional financial system.

The White House will hold a cryptocurrency summit next Monday, inviting senior representatives from the banking industry and the cryptocurrency sector in an attempt to break the deadlock over the Clarity Act. According to three industry insiders, the meeting will be chaired by the White House Cryptocurrency Committee, with the core topic focusing on whether cryptocurrency companies can offer interest or other returns on stablecoins held by customers.The banking industry is concerned that allowing cryptocurrency companies to pay returns will lead to deposit outflows, threatening financial stability. A report from Standard Chartered estimates that by the end of 2028, stablecoins could siphon off about $500 billion in deposits from U.S. banks. Cryptocurrency proponents argue that banning the payment of returns would harm competitiveness and be crucial for attracting new customers.

After setbacks in negotiations over cryptocurrency market legislation in the Senate Agriculture Committee, a Democratic senator's aide stated that the Democratic side is still willing to return to the negotiating table to push for a bipartisan compromise.The aide revealed that at the beginning of the new year, Democratic members were "caught off guard" during the negotiations, as the Republican side drafted a new version of the bill without sufficient consultation and originally planned to move directly into the markup process in mid-January. In response, the Democratic side hopes to re-engage with the committee chair, Republican Senator John Boozman's team, before a vote this week to strive for a bipartisan consensus.The Senate Agriculture Committee was originally scheduled to hold a markup and voting session on cryptocurrency legislation this Tuesday, but it has been postponed to Thursday due to severe weather in Washington. Meanwhile, some Democratic lawmakers are actively pushing to restart negotiations to reach a bipartisan-approved text before the hearing.The cryptocurrency market structure bill aims to establish a federal regulatory framework for digital assets, including clarifying the regulatory division between the SEC and CFTC, as well as related disclosure requirements. Analysts point out that, given that both the Senate Banking Committee and the Agriculture Committee need to advance their respective versions of the bill, bipartisan cooperation remains a key prerequisite for the smooth progress of the legislation.

According to reports, after negotiations on cryptocurrency market legislation hit a snag in the Senate Agriculture Committee, a Democratic senator's aide stated that the Democratic side is still willing to return to the negotiating table to push for a bipartisan compromise.The aide revealed that at the beginning of the new year, Democratic members were "caught off guard" during the negotiations, as the Republican side drafted a new version of the bill without sufficient consultation and originally planned to move directly into the review process this week. In response, the Democratic side hopes to re-engage with the committee chair, Republican Senator John Boozman's team, before the vote this week to seek a bipartisan consensus.The Senate Agriculture Committee was originally scheduled to hold a markup and voting session on cryptocurrency legislation this Tuesday, but it has been postponed to Thursday due to severe weather in Washington. Meanwhile, some Democratic lawmakers are actively pushing to restart negotiations to reach a bipartisan-approved text before the hearing.The cryptocurrency market structure bill aims to establish a federal-level regulatory framework for digital assets, including clarifying the regulatory division of responsibilities between the SEC and CFTC, as well as related disclosure requirements. Analysts point out that, given that both the Senate Banking Committee and the Agriculture Committee need to advance their respective versions of the bill, bipartisan cooperation remains a key prerequisite for the smooth progress of the legislation.

Galaxy Research Director Alex Thorn posted on the X platform that a key hearing in the legislative process for cryptocurrency market structure will take place next week. Republican members of the Senate Agriculture Committee have released a discussion draft of the "Digital Commodities Consumer Protection Act." This bill is expected to be merged with related legislative content completed by the Senate Banking Committee to form a comprehensive "Cryptocurrency Market Structure Act."As the Senate Agriculture Committee is responsible for overseeing the U.S. Commodity Futures Trading Commission (CFTC), this draft primarily focuses on the digital commodities market, with the core content being to grant the CFTC exclusive regulatory authority over the spot cryptocurrency market, including cryptocurrency trading platforms, dealers, and brokers. The committee plans to hold a hearing on the bill's amendments on January 27 (Tuesday), during which bipartisan lawmakers may propose amendments. Although the commodity attributes section (including the CFTC's regulatory authority over the spot market) is generally considered less controversial than the securities attributes section in the cryptocurrency market structure discussions, this discussion draft still carries a noticeable partisan tone. It has not yet received the endorsement of key Democratic negotiators, although many provisions previously negotiated with Democrats have been included. Overall, the legislative text from the Senate Agriculture Committee aligns with market expectations, with its core being the establishment of a regulatory framework for the digital commodities spot market centered around the CFTC. Compared to the related topics being discussed by the Senate Banking Committee, this version has a narrower scope and is relatively less politically sensitive and controversial.

The chairman of the U.S. Senate Agriculture Committee, John Boozman, officially unveiled the committee's version of the cryptocurrency market structure legislation on Thursday. Although the bill has made some progress on decentralized finance (DeFi) related issues, Boozman pointed out that there are still differences between the two parties on "fundamental policy issues," and formal legislation is still some distance away.Sources indicate that the Democratic opposition to the bill stems more from political differences, including concerns about potential conflicts of interest involving Trump and his family's involvement in cryptocurrency projects, as well as worries about insufficient consumer protection. According to legislative procedures, the bill requires bipartisan support to pass in the Senate, needing at least 60 votes, which means that in addition to full support from Republican senators, it must also secure at least 7 Democratic senators.Both the Senate Agriculture Committee and the Banking Committee need to hold markups and votes on their respective versions, with the Agriculture Committee's markup expected to take place next week. However, progress in the Senate Banking Committee has stalled. Previously, the markup was postponed due to Coinbase withdrawing its support, with contentious issues including tokenized stocks, the regulatory division of DeFi, the boundaries of SEC and CFTC responsibilities, and stablecoin incentive mechanisms. Bloomberg reported that the Banking Committee may delay the legislative process by several weeks to prioritize housing and affordability issues.

According to the announcement from the Senate Agriculture Committee, Chairman John Boozman has released an updated version of the cryptocurrency market structure legislation, which aims to grant the Commodity Futures Trading Commission (CFTC) new authority to regulate digital commodities.The draft has been revised based on the original bipartisan proposal, incorporating feedback from various parties. Although a final consensus with the Democrats could not be reached, Boozman emphasized that the legislative work will continue and looks forward to the formal review meeting scheduled for next Tuesday at 3 PM Eastern Time.

Coinbase CEO Brian Armstrong posted that he has arrived at the World Economic Forum in Davos, where he will focus on three main topics this week: promoting economic freedom and modernizing the financial system, advancing legislation on crypto market structure, and driving the tokenization of capital markets to expand access to financing. He emphasized, "This time, the financial future is built for the people."

Coinbase CEO Brian Armstrong posted on the X platform that he has arrived in Davos, Switzerland to attend the World Economic Forum annual meeting, with three main goals this week:· Discuss economic freedom with world leaders and how cryptocurrency can revolutionize their financial systems;· Continue to push for market structure legislation;· Advocate for asset tokenization to promote the democratization of capital access.

According to market news, Moldova's Finance Minister Andrian Gavriliță announced that the country plans to introduce cryptocurrency regulatory legislation in 2026.As a candidate member of the EU, Moldova must adhere to the EU's regulatory framework for crypto assets (MiCA). The new regulations will clarify the legality of citizens holding, trading, and converting crypto assets, and will authorize specific institutions to conduct related business. However, cryptocurrencies will not be allowed for payment of goods or services. In terms of taxation, while holding cryptocurrencies will not be taxed, profits generated from transactions will be subject to a 12% income tax.The regulations will also include strict anti-money laundering and security risk management measures. Andrian Gavriliță emphasized that the government's goal is to legalize this sector while preventing cryptocurrencies from being used for illegal financing and money laundering activities.

Kraken co-CEO Arjun Sethi posted on the X platform, stating that it is crucial to distinguish between participation and abandonment. Arjun Sethi and several related individuals are still actively involved, as they believe the right direction is to address the outstanding issues and refine the bill, rather than abandon the progress made over the years by both parties.

SEC Chairman Paul Atkins revealed in an interview with Fox Business that the U.S. Congress passed and the President signed the landmark "Genius Act" at the end of last year. This marks the first time the U.S. government has formally recognized crypto assets through legislation, providing a clear regulatory framework for stablecoins.Atkins emphasized that Congress is actively advancing legislative work on the structure of the cryptocurrency market to enhance market certainty, which aligns with Trump's goal of creating "the world's cryptocurrency capital." He expressed optimism that the relevant bills will be passed and signed this year, believing that this will significantly promote the development of the crypto market and strengthen investor protection.

According to Bloomberg, Coinbase is increasing pressure on U.S. lawmakers to retain the ability to offer rewards to customers holding stablecoins.The company believes that if the restrictive provisions currently under discussion are included in the major cryptocurrency bill to be announced on Monday, this business will face risks. Sources say that if the bill includes other content beyond enhanced reward disclosure requirements, Coinbase may reconsider its support for the digital asset market structure bill, which will be reviewed by at least one Senate committee on Thursday.Industry insiders reveal that the proposed plan is to limit the ability to offer rewards to regulated financial institutions, a move supported by some in the banking sector who believe that interest-bearing stablecoin accounts could siphon off traditional bank deposits. Coinbase has applied for a national trust license, hoping to provide rewards under the regulations.However, native cryptocurrency companies are pushing to retain a platform-based reward model, which they argue can work even without a trust license, and warn that broader restrictions could disrupt the competitive landscape of the industry. The specific wording of the bill remains unclear, but it will add some provisions regarding rewards, an issue that has weakened bipartisan support for the market structure bill and could delay its passage.Sources indicate that a potential compromise could allow only licensed financial institutions to offer rewards on stablecoin balances. Recently, five cryptocurrency companies received conditional approval from the U.S. OCC to become national trust banks. Given the recent approvals, a market structure bill allowing licensed trust companies to provide yields may appease some cryptocurrency firms. If restrictions are implemented, industry insiders believe it could trigger a "whack-a-mole" game, with crypto companies seeking alternative ways to reward users.

New York State lawmakers have reintroduced a bill aimed at banning contract betting on sports and political events in prediction markets, while allowing betting on league outcomes.

According to Bitcoin Magazine, investment bank TD Cowen expects Congress to pass cryptocurrency market structure legislation by 2026. The CLARITY Act will clarify whether digital assets are regulated by the SEC or the CFTC, and will regulate staking services, cryptocurrency custody, and trading platforms. Senate Democrats have proposed several requirements, including clarifying the legal status of digital assets, establishing a regulatory framework, and preventing illegal financial activities. The bill may also include ethical provisions prohibiting the president and their family from owning cryptocurrency exchanges or issuing tokens. Experts believe that while there is a risk of a delay until the first half of 2027, a compromise is likely to be reached among all parties.

Florida lawmakers are pushing legislation to include digital assets on the state government's balance sheet, proposing the establishment of a state-led cryptocurrency reserve program after related proposals were stalled earlier this year.The bill was submitted by Republican Representative John Snyder and aims to prepare for the 2026 legislative session. House Bill 1039 (HB 1039) proposes the creation of a "Strategic Cryptocurrency Reserve Fund" independent of the state’s financial system and authorizes the Florida Chief Financial Officer (CFO) to manage cryptocurrency asset investments under an established risk control framework.

Kalshi CEO Tarek Mansour stated on LinkedIn that Kalshi supports legislation proposed by New York Democratic Congressman Ritchie Torres, which aims to prohibit government officials from insider trading on platforms like Kalshi.Tarek Mansour also mentioned in the article that the recent allegations of insider trading primarily involve unregulated offshore platforms.Previously, it was reported that New York Democratic Congressman Ritchie Torres plans to introduce a bill this week called the "2026 Financial Prediction Markets Public Integrity Act." This bill would prohibit federally elected officials, politically appointed officials, and executive branch employees from trading on prediction markets while possessing non-public information related to trading, or when they might obtain such information through their positions.