Enactment of US Crypto Market Structure Bill Could Drive Major Bullish Shift – Regulation Bitcoin News

U.S. lawmakers are preparing to advance the crypto market structure bill, which seeks to clarify the regulatory landscape for digital assets. The bill will be discussed in hearings by the Senate Agriculture and Banking Committees on January 11, 2026. Lawmakers aim to finalize key provisions that will define the future of the crypto industry in the U.S.

Coinbase, the largest U.S. crypto exchange, is reportedly reconsidering its support for the bill due to potential restrictions on stablecoin rewards. The company argues that any broad limitations could undermine its business model and weaken U.S. competitiveness in the global crypto race.

The legislation also aims to address issues related to decentralized finance (DeFi) platforms and their developers, ensuring they are not unfairly burdened by regulatory obligations. DeFi advocates want provisions that allow individuals to self-custody their crypto and protect developers from prosecution for technologies used in illicit finance.

Why Did This Happen?

The proposed bill seeks to close regulatory loopholes that allow stablecoin rewards to compete with traditional banking products. Under the GENIUS Act, stablecoin issuers are prohibited from paying interest or yield directly to users, but third-party platforms like Coinbase can still offer rewards. Lawmakers are now considering limiting these rewards to regulated financial institutions.

Coinbase is particularly concerned because its stablecoin-related revenue is projected to reach $1.3 billion in 2025. Further restrictions could significantly impact its earnings. The company has applied for a national trust charter but maintains that platform-based rewards are essential for maintaining competition.

How Did Markets React?

The uncertainty around the bill has led to speculation about its potential market impact. Some analysts suggest that if the bill passes, it could act as a bullish catalyst for Bitcoin, as it would provide much-needed regulatory clarity. The passage of the GENIUS Act earlier in 2025 saw Bitcoin surge to a high of $119,000 shortly after the bill was signed into law.

South Korea and other global markets are also moving toward greater crypto regulation, with South Korea recently announcing plans to allow spot Bitcoin ETFs. These developments indicate a broader trend toward institutional adoption and regulatory alignment.

What Are Analysts Watching Next?

The success of the U.S. market structure bill depends on resolving key issues like stablecoin rewards and DeFi compliance. Lawmakers are also considering whether to ban elected officials from profiting off crypto ventures, a proposal supported by some Senate Democrats.

India and other countries are tightening crypto regulations, with India recently updating KYC rules for crypto platforms. These global changes reflect growing concerns over money laundering and tax evasion, further emphasizing the need for a robust regulatory framework in the U.S.

With hearings scheduled for January 11 and a potential markup of the bill in the coming weeks, the outcome will have significant implications for the crypto industry and investors. The bill's passage could determine whether the U.S. maintains its position as a leader in the global crypto market.

The market is closely watching how the Trump administration and lawmakers navigate these tensions. A swift passage of the bill could provide the regulatory certainty needed to drive further innovation and adoption of digital assets in the U.S.