Thorn points out: U.S. Senate's cryptocurrency regulation bill marks a turning point in the market

SpeakWithHatOn · 2026-01-28T14:20:18+00:00

Thorn, the research director at Galaxy Digital, analyzed how the recent Senate Banking Committee vote on the cryptocurrency market structure bill could significantly impact the industry. The bill requires bipartisan support, highlighting the difficulty of achieving consensus. Its provisions address key regulatory issues in the cryptocurrency space, and its passage could enhance market credibility, although failure to pass may negatively affect investor sentiment.

SpeakWithHatOn

2026-01-28 14:20:18

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Thorn, Research Director at Galaxy Digital, analyzed that the outcome of the Senate Banking Committee’s vote on the Crypto Asset Market Structure Bill earlier this month could significantly influence the overall direction of the industry. His detailed examination of voting trends leading up to the mid-January vote has become an important reference for market participants.

Support from Democratic Senators Needed for Passage

Currently, the Senate is divided, with Republicans holding the majority, but a high hurdle remains: 60 votes are required for the bill to pass. According to Thorn’s analysis, the current voting situation stands at 53 to 47, making it essential to secure support not only from Republican senators but also from 7 to 10 Democratic senators. This figure suggests how difficult it is to build a bipartisan consensus.

Core Content of the Crypto Asset Regulation Bill

The reason this bill is attracting attention is due to the breadth of its regulatory scope. It addresses multiple fundamental issues in the crypto industry, including how to position DeFi within anti-money laundering frameworks, the treatment of revenue related to stablecoin reserves, protections for non-custodial developers, and the scope of SEC’s authority to approve token issuances. Thorn regards these provisions as a crucial framework for establishing a regulatory foundation for the industry.

Market Impact Scenarios if the Bill Passes or Is Rejected

If the bill is passed, there is a high likelihood that a strong momentum toward industry expansion and institutionalization will emerge. Clarified regulations could lower barriers for institutional investors and enhance overall market trust. Conversely, even if the vote is postponed, Thorn points out that the direct impact on the fundamental aspects of the crypto market would be limited. However, he also notes that negative market sentiment is unavoidable, which could lead to a short-term deterioration in investor confidence.

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