Senate Unveils Updated Market Structure Bill and CZ Joins Genius Trading as Advisor

The U.S. Senate Banking Committee has unveiled a revised version of the Digital Asset Market Clarity Act, which aims to clarify stablecoin reward regulations by permitting structured incentives tied to user activity while banning passive returns on idle balances according to the bill's provisions. This updated legislation is a key step in the ongoing bipartisan effort to establish a regulatory framework for digital assets. The bill includes exemptions for rewards tied to payments, staking, and liquidity provision, addressing concerns from both crypto firms and traditional banks.

YZi Labs, the family office of Binance co-founders Changpeng "CZ" Zhao and Yi He, has made a "multi-8-figure" investment in Genius Trading. CZ has joined the startup as an advisor, signaling institutional support for the privacy-focused onchain trading platform. Genius is developing a self-custodial terminal that allows users to access spot, perpetual, and copy trading features across multiple blockchains without switching wallets or revealing trading strategies.

Bernstein, a research and brokerage firm, has raised its price target for Figure Technology Solutions to $72 from $54, designating it as its 2026 "best idea". The firm cited faster-than-expected growth in Figure's tokenized credit marketplace and the company's strategic expansion into new lending categories.

Why the Move Happened

The revised market structure bill seeks to balance the needs of crypto firms and traditional banks by allowing structured incentives while preventing unregulated deposit-like returns according to the draft legislation. This compromise aims to address concerns raised by the banking industry about liquidity risks associated with stablecoin rewards. The bill also includes provisions to protect software developers and infrastructure providers from being treated as financial intermediaries as reported.

YZi Labs' investment in Genius Trading is part of its broader strategy to support onchain infrastructure. Genius aims to become a decentralized alternative to centralized exchanges by offering privacy and self-custody features. With CZ's involvement, the platform is positioned to attract a broader user base as noted.

Bernstein's decision to raise its price target on Figure reflects the firm's belief in the company's potential to benefit from the growing adoption of tokenized credit. Figure's expansion into new lending categories and its tokenized equity platform are seen as key catalysts for long-term growth according to analyst commentary.

How Markets Reacted

The updated market structure bill has been welcomed by crypto firms such as Coinbase, which had previously threatened to withdraw support if reward programs were curtailed too aggressively according to industry reports. The bill's focus on structured incentives aligns with the industry's demand for flexibility while addressing regulatory concerns.

Genius Trading's recent funding round has drawn attention from the crypto community and institutional investors. The platform's emphasis on privacy and cross-chain functionality positions it as a potential leader in the onchain trading space. The planned public beta for its privacy layer in the second quarter of 2026 is expected to further enhance its appeal as announced.

Figure's stock price has shown positive momentum, driven by its expanding tokenized credit marketplace and growing adoption of its stablecoin products. The firm's strategic partnerships and product innovations are expected to drive further growth in the coming months according to market analysis.

What Analysts Are Watching

Analysts are closely monitoring the Senate Banking Committee's markup of the market structure bill, scheduled for Thursday. The outcome of this markup will determine the bill's next steps and its potential impact on the crypto industry as reported.

The success of Genius Trading's privacy layer and its ability to attract a diverse user base will be key metrics for investors. The platform's focus on onchain adoption and privacy aligns with broader trends in the crypto ecosystem according to industry analysis.

Figure's expansion into new lending categories and its tokenized equity platform are expected to drive long-term growth. Analysts will be watching the firm's progress in scaling its stablecoin and funding products, as well as its ability to maintain strong operating leverage according to research.