Galaxy Research Director: Key hearing on cryptocurrency market structure legislation next week, bipartisan lawmakers may propose amendments

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.