SEC Chair Anticipates Trump Signing Crypto Market Structure Bill

The U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins expressed optimism on Monday that President Donald Trump will sign the long-awaited crypto market structure bill into law this year. The bill, a major bipartisan effort to clarify regulatory oversight of digital assets, is seen as critical to positioning the U.S. as a global hub for crypto innovation. The legislation is currently under review by Congress and could be marked up in the Senate Banking Committee this week.

The crypto market structure bill aims to establish a clear regulatory framework by defining the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in overseeing the industry. According to Atkins, this will reduce regulatory uncertainty for firms and investors while supporting innovation in the space. The bill is part of broader efforts to stabilize the crypto market and promote the U.S. as the 'crypto capital of the world'.

Atkins emphasized that the bill will help implement Trump's vision of strengthening the U.S. dollar's global dominance while ensuring investor protections. The legislation also includes provisions to regulate stablecoins, an area where lawmakers have shown growing interest due to the tokens' increasing systemic importance.

Why Did This Happen?

The push for the crypto market structure bill has gained momentum amid rising concerns over regulatory ambiguity. The bill is seen as a critical step toward resolving the long-standing dispute between the SEC and CFTC over jurisdiction over digital assets. According to a Senate Banking Committee document, the proposed framework divides oversight based on the functional lifecycle of a digital asset.

The bill is also backed by a growing coalition of industry advocates. Stand With Crypto, a digital asset advocacy group, reported that it has mobilized over 2.6 million supporters across the U.S. to lobby for the bill's passage. The group has stated that getting the bill signed into law is its top priority for 2026.

How Did Markets React?

Crypto markets have shown a muted response to the news so far. Bitcoin (BTC) traded at $91,207 as of 1 p.m. ET on Monday, reflecting a modest 0.37% gain for the day. The broader market remains cautious as investors await regulatory clarity. Analysts note that the bill's passage could help attract institutional investors by reducing legal and regulatory risks.

The recent approval of Bitcoin spot ETFs has already contributed to a more favorable regulatory environment. The SEC's January 2024 decision opened the door for institutional capital to enter the crypto market, a move that was hailed by many as a turning point for the industry.

What Are Analysts Watching Next?

Despite the optimism, some analysts remain cautious about the bill's chances of being signed into law before the end of the year. Paradigm's vice president of regulatory affairs, Justin Slaughter, warned that the rulemaking process could take years, even if the bill passes. He compared the process to the Dodd-Frank financial reform, which took over a decade to implement fully.

In addition to regulatory uncertainty, the bill faces political challenges. Sen. Elizabeth Warren has raised concerns about the potential risks of including crypto in retirement plans and has asked the SEC to clarify how it will protect investors. These concerns highlight the broader debate over the role of digital assets in the U.S. financial system.

Industry leaders are also watching closely for any changes to the bill's language, particularly regarding stablecoin yield and DeFi. Some crypto advocates have expressed fears that last-minute amendments could weaken the bill's impact and delay its passage. Nic Puckrin of Coin Bureau noted that the U.S. dollar's weakening could make stablecoins more attractive, but this also increases the risk of regulatory pushback.