Less Regulations Coming!

[zasad@]

I think the market price has long since reflected this news. I think that if a vote is scheduled, then an agreement has already been reached. But that's the opinion of someone who doesn't have a good understanding of US politics.

[bbc.reporter]

@zasad@. However, it appears that an agreement has not been reached. The collection of votes has been rescheduled on the last week of January to gather more support according to this article.



Sen. John Boozman (R-Ark.), who chairs the Senate Agriculture Committee, said in a statement Monday that the committee has decided to mark up this legislation during the last week of January.

The delay is to ensure the bill gets the broad support it needs to move forward, according to he statement.

Read in full https://www.coindesk.com/markets/2026/01/12/crypto-market-structure-bill-markup-delayed-to-last-week-of-january-senator-boozman-says



It is also headshaking why the senators have this bill as the priority instead of the clarity act.

[zasad@]

@zasad@. However, it appears that an agreement has not been reached. The collection of votes has been rescheduled on the last week of January to gather more support according to this article.



Sen. John Boozman (R-Ark.), who chairs the Senate Agriculture Committee, said in a statement Monday that the committee has decided to mark up this legislation during the last week of January.

The delay is to ensure the bill gets the broad support it needs to move forward, according to he statement.

Read in full https://www.coindesk.com/markets/2026/01/12/crypto-market-structure-bill-markup-delayed-to-last-week-of-january-senator-boozman-says



It is also headshaking why the senators have this bill as the priority instead of the clarity act.

These two bills share many similarities, but they also have their differences. While discussions are ongoing, many more changes are possible, but my prediction is that the primary law regulating the cryptocurrency market will be passed based on these two drafts.

[bbc.reporter]

It appears that this will be very bearish for the market of the cryptospace. @philipma1957 is predicting that gold and silver will dump and some of the profits created will transfer to bitcoin as inflows. However, I speculate that what might occur is bitcoin will dump and the sellers might transfer to gold and silver hehehehe.



The Senate Banking Committee won't return to its work on crypto market structure for at least a few weeks, three people familiar with the situation told CoinDesk.

After last week's public pull-out by crypto exchange Coinbase, the committee postponed its plans to hold a markup hearing — where lawmakers could debate and vote on amendments — indefinitely.

Read in full https://www.coindesk.com/policy/2026/01/21/senate-crypto-bill-hits-a-wall-as-lawmakers-pivot-to-housing-after-coinbase-pulls-its-support

[zasad@]

It appears that this will be very bearish for the market of the cryptospace. @philipma1957 is predicting that gold and silver will dump and some of the profits created will transfer to bitcoin as inflows. However, I speculate that what might occur is bitcoin will dump and the sellers might transfer to gold and silver hehehehe.



The Senate Banking Committee won't return to its work on crypto market structure for at least a few weeks, three people familiar with the situation told CoinDesk.

After last week's public pull-out by crypto exchange Coinbase, the committee postponed its plans to hold a markup hearing — where lawmakers could debate and vote on amendments — indefinitely.

Read in full https://www.coindesk.com/policy/2026/01/21/senate-crypto-bill-hits-a-wall-as-lawmakers-pivot-to-housing-after-coinbase-pulls-its-support

I see the main problem in regulating the stablecoin market. Cryptocurrency exchanges and their representative, Coinbase, want to legalize staking. But banks are against it, as otherwise, keeping money in banks would simply become unprofitable.
The conflict between the powers of the CFTC and the SEC remains unresolved. Sometimes it even seems like no law is better than one

[bbc.reporter]

@zasad@. What Coinbase is arguing for is to allow platforms to give yield for stablecoin holders even if they are idle. This was not allowed in the new drafts. Only people who are staking and lending are allowed.

If yield for idle deposits are allowed, this would certainly cause trillions of dollars from the banks and money markets to transfer to higher yielding stablecoins hehehehehe.

In any case, the passing of the clarity act is becoming more bearish.



The Senate Agriculture Committee postponed its crypto market structure markup hearing from today to Thursday, citing the winter storm that hit much of the U.S. over the weekend.

According to Bitwise CIO Matt Hougan the Clarity Act is essential for cementing a current pro-crypto regulatory environment into permanent law. Without it, the the industry remains vulnerable to the whims of future administrations.

Hougan pointed out that market sentiment on whether the bill will become law has soured recently. While Polymarket traders in early January priced in an 80% chance of the bill passing, those odds have plummeted to roughly 50% after figures like Coinbase (COIN) CEO Brian Armstrong labeled the current draft unworkable.

Read in full https://www.coindesk.com/policy/2026/01/27/indispensable-or-irrelevant-bitwise-cio-warns-of-3-year-deadline-for-crypto-adoption

[zasad@]

@zasad@. What Coinbase is arguing for is to allow platforms to give yield for stablecoin holders even if they are idle. This was not allowed in the new drafts. Only people who are staking and lending are allowed.

If yield for idle deposits are allowed, this would certainly cause trillions of dollars from the banks and money markets to transfer to higher yielding stablecoins hehehehehe.

In any case, the passing of the clarity act is becoming more bearish.



The Senate Agriculture Committee postponed its crypto market structure markup hearing from today to Thursday, citing the winter storm that hit much of the U.S. over the weekend.

According to Bitwise CIO Matt Hougan the Clarity Act is essential for cementing a current pro-crypto regulatory environment into permanent law. Without it, the the industry remains vulnerable to the whims of future administrations.

Hougan pointed out that market sentiment on whether the bill will become law has soured recently. While Polymarket traders in early January priced in an 80% chance of the bill passing, those odds have plummeted to roughly 50% after figures like Coinbase (COIN) CEO Brian Armstrong labeled the current draft unworkable.

Read in full https://www.coindesk.com/policy/2026/01/27/indispensable-or-irrelevant-bitwise-cio-warns-of-3-year-deadline-for-crypto-adoption

It's practically the same as staking.
But I don't know what restrictions the exchange has on how clients can manage their stablecoins. It's not a given that people will immediately start abandoning banks in favor of exchanges. Bank deposits are generally protected by law. In the US, there are many investment funds that have been operating for a long time and offer returns that are better than those in banks, but people still keep their money in banks.

[bbc.reporter]

@zasad@. It can be argued that they are similar, however, there is a difference and the words written on the draft of the bill is very much important to clearly give this difference. If idle funds are not doing anything, not staking, not lending, not being used, it is very important for Coinbase and the other platforms that support the bill to be allowed to pay yield for those idle funds.

However, the banks are very much afraid of this because this might cause outflows from them and transfer to the platforms in the cryptospace heheheeh. The big banks are using the democrats under their control to change the bill.

[zasad@]

@zasad@. It can be argued that they are similar, however, there is a difference and the words written on the draft of the bill is very much important to clearly give this difference. If idle funds are not doing anything, not staking, not lending, not being used, it is very important for Coinbase and the other platforms that support the bill to be allowed to pay yield for those idle funds.

However, the banks are very much afraid of this because this might cause outflows from them and transfer to the platforms in the cryptospace heheheeh. The big banks are using the democrats under their control to change the bill.

I can only watch this circus. You can't stop people from making money. They'll still find ways to circumvent these restrictions.
____
Senate Vote Exposes CLARITY Act’s Fragile Path Forward
https://www.yahoo.com/news/articles/senate-vote-exposes-clarity-act-171014195.html?
The Senate Agriculture Committee has advanced its portion of the CLARITY Act on a narrow, party-line vote, reflecting how politically fragile the crypto market structure bill remains.

The committee passed the measure 12–11 on Wednesday, with no Democrats voting in favor, despite months of negotiations cited by Republican leadership.

[safar1980]

This latest White House meeting on the Clarity Act didn't produce the hoped-for compromise, with sources saying the bankers arrived with a "principles" document calling for a total ban on stablecoin yield.
Representatives of the top U.S. banks met across a table from negotiators from the crypto industry, and they were under instructions from President Donald Trump's crypto advisers to find common ground on the Senate's market structure legislation.
While the crypto industry's statements were upbeat about the potential for progress, the banking industry issued a statement without detail on a way forward.

[Veloxcrypt]

Less regulation should not be confused with the absence of oversight, it should mean clearer and more consistent rules.
If enforcement priorities shift toward prosecuting actual criminal misuse of crypto rather than broadly targeting developers and platforms, that could provide much needed regulatory clarity which will inturn help solve a lot of clarity concerns.
The key issue is balance:
• Encourage innovation
• Protect consumers
• Enforce laws against criminal activity, and make sure offenders are duly punished
Crypto itself is not the crime, unlawful conduct is.

[bbc.reporter]

@zasad@. It can be argued that they are similar, however, there is a difference and the words written on the draft of the bill is very much important to clearly give this difference. If idle funds are not doing anything, not staking, not lending, not being used, it is very important for Coinbase and the other platforms that support the bill to be allowed to pay yield for those idle funds.

However, the banks are very much afraid of this because this might cause outflows from them and transfer to the platforms in the cryptospace heheheeh. The big banks are using the democrats under their control to change the bill.

I can only watch this circus. You can't stop people from making money. They'll still find ways to circumvent these restrictions.
____
Senate Vote Exposes CLARITY Act’s Fragile Path Forward
https://www.yahoo.com/news/articles/senate-vote-exposes-clarity-act-171014195.html?
The Senate Agriculture Committee has advanced its portion of the CLARITY Act on a narrow, party-line vote, reflecting how politically fragile the crypto market structure bill remains.

The committee passed the measure 12–11 on Wednesday, with no Democrats voting in favor, despite months of negotiations cited by Republican leadership.

Coinbase's CEO Brian Armstrong has removed his support for the bill already. He has declared that it is very much better to have no bill than having a bad bill for this. It appears that the signing if this bill into law will cause a negative market where everyone will dump.

However, I predict that the Donald will veto this bill hehehehe which might cause a pump on the market.

[zasad@]

@zasad@. It can be argued that they are similar, however, there is a difference and the words written on the draft of the bill is very much important to clearly give this difference. If idle funds are not doing anything, not staking, not lending, not being used, it is very important for Coinbase and the other platforms that support the bill to be allowed to pay yield for those idle funds.

However, the banks are very much afraid of this because this might cause outflows from them and transfer to the platforms in the cryptospace heheheeh. The big banks are using the democrats under their control to change the bill.

I can only watch this circus. You can't stop people from making money. They'll still find ways to circumvent these restrictions.
____
Senate Vote Exposes CLARITY Act’s Fragile Path Forward
https://www.yahoo.com/news/articles/senate-vote-exposes-clarity-act-171014195.html?
The Senate Agriculture Committee has advanced its portion of the CLARITY Act on a narrow, party-line vote, reflecting how politically fragile the crypto market structure bill remains.

The committee passed the measure 12–11 on Wednesday, with no Democrats voting in favor, despite months of negotiations cited by Republican leadership.

Coinbase's CEO Brian Armstrong has removed his support for the bill already. He has declared that it is very much better to have no bill than having a bad bill for this. It appears that the signing if this bill into law will cause a negative market where everyone will dump.

However, I predict that the Donald will veto this bill hehehehe which might cause a pump on the market.

I also wrote an opinion that sometimes the absence of a law is much better
The situation does not change, but politicians are trying to reach an agreement.

https://bitcoinmagazine.com/news/passing-clarity-act-critical-for-bitcoin
"Central to the dispute are provisions in the Clarity Act concerning stablecoin yields and the role of regulatory agencies. Opponents, including major exchange executives, have argued that proposed restrictions on rewards for stablecoin holdings could undermine the competitiveness of U.S. exchanges and limit innovation. Banks and credit unions, in turn, have raised concerns that high yields on stablecoin accounts could pull deposits away from the traditional banking system, undermining funding for lending activities."

[Zreszko]

Regulatory clarity is a double-edged sword. While removing excessive restrictions can accelerate innovation and institutional adoption, it also places more responsibility on developers to maintain security and transparency. The real question is whether the community can self-regulate effectively enough to prevent bad actors from taking advantage of a more relaxed environment

[paulo pinto]

Regulatory clarity is generally positive for innovation, especially in a sector that has often operated under uncertainty.

That said, reducing oversight and reducing regulation are not necessarily the same thing. Clear rules combined with a focus on punishing actual fraud and abuse likely create a healthier environment than over-regulation or outright leniency.

The real question is whether this change improves legal certainty without weakening accountability. The sustainable growth of the crypto sector will depend on this balance.

[safar1980]

JPMorgan says crypto market structure bill could be approved by mid-year and serve as positive catalyst in second half
Even as crypto sentiment remains weak, JPMorgan analysts see a possible mid-year approval of U.S. market structure legislation as a supportive factor for markets in the second half.

"While sentiment remains negative in crypto markets, we continue to believe that a potential approval of the market structure legislation most likely by mid year could serve as a positive catalyst for crypto markets into the second half of the year," JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said in a report.

The proposed market structure bill, widely referred to as the CLARITY Act, is designed to create a comprehensive regulatory framework for digital assets in the U.S. The House has already advanced the legislation, while discussions continue in the Senate.

Two major sticking points are holding up the legislation. One is how to treat stablecoin yield. Crypto firms want to offer rewards to users holding stablecoins, while banks argue that allowing yield on stablecoin balances could pull deposits away from the traditional banking system and pose financial stability risks. Another is the conflict-of-interest debate, as Democrats are pushing for restrictions that would prevent senior government officials and their families, including the President, from engaging in certain crypto-related financial activities. The White House has hosted multiple closed-door meetings between crypto industry representatives and banking groups as negotiations continue, with a compromise still possible.

[Z-tight]

JPMorgan says crypto market structure bill could be approved by mid-year and serve as positive catalyst in second half
Even as crypto sentiment remains weak, JPMorgan analysts see a possible mid-year approval of U.S. market structure legislation as a supportive factor for markets in the second half.

If the bill is approved and passed to law, then it provides clarity as there would then be a regulatory framework to follow when it comes to digital assets. And like the article rightly says, it brings to an end 'regulation by enforcement', which was very much used during the Biden administration.

However, i am not sure about it being a catalyst. Everyone that is somehow involved in crypto would hope that something acts as a catalyst and moves the price upward again, but we'd have to wait and see. It is hard, almost impossible to guess how the market would react to an event that has not happened.