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amendment

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.

Coinbase executive: Amendments to the GENIUS Act could give China an advantage in global payment competition

Coinbase Chief Policy Officer Faryar Shirzad recently stated on social media that modifications to the GENIUS Act by the U.S. Congress could weaken the competitiveness of the U.S. dollar stablecoin in the global payments arena, while China is enhancing the appeal of its digital yuan through interest payments on digital yuan wallet balances.The People's Bank of China announced this week that starting January 1, 2026, it will allow commercial banks to pay interest on digital yuan wallet balances. PBOC Vice Governor Lu Lei stated that this initiative will transition the digital yuan from the "digital cash" era to the "digital deposit currency" era, further expanding its value storage and cross-border payment capabilities.The GENIUS Act was passed in June this year, establishing reserve and compliance rules for stablecoins, but prohibiting issuers from paying direct interest, allowing only platforms and third parties to provide rewards linked to the use of stablecoins. Shirzad warned that if the Senate mishandles negotiations on the market structure bill, it could provide a competitive advantage to countries like China.Coinbase CEO Brian Armstrong stated last week that any attempts to revise the GENIUS Act are a "red line," accusing the banking industry of lobbying Congress to restrict stablecoin rewards to protect its deposit base. He believes that the banks' judgment on this issue is misguided and predicts that banks will ultimately compete to offer interest and returns on stablecoins. Previously, Lu Lei mentioned that the "Action Plan" to be implemented on January 1, 2026, clearly states that digital yuan wallet balances can earn interest.
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