Focus on the encrypted market! The highly anticipated US hearing has been postponed until Thursday, and the CLARITY Act has taken a crucial step in breaking the legislative deadlock!

The Senate Agriculture Committee has postponed the hearing on the cryptocurrency market structure bill, which was originally scheduled for Tuesday, to Thursday due to a winter storm hitting most parts of the United States. The committee will debate and vote on the bill and its proposed amendments during the hearing. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have also postponed their joint attendance activities, originally scheduled for Tuesday, to Thursday. The Senate Agriculture Committee had planned for lawmakers to debate amendments and vote on their version of the bill, which aims to clarify how the CFTC regulates the cryptocurrency market. However, a rare winter storm hitting the East Coast and most parts of the eastern United States over the weekend led to flight cancellations and changed the Senate's schedule. The hearing will now be held on Thursday at 10:30 a.m. Eastern Time due to the "winter weather." The hearing is expected to be contentious; although the Agriculture Committee is believed to potentially present a more bipartisan draft, Committee Chairman John Boozman stated in a statement last week that he and his negotiating partner, Democratic Senator Cory Booker, were unable to reach consensus on the text due to "fundamental policy differences." Key Points of the Cryptocurrency Market Structure Bill The House passed the Market Structure Bill "CLARITY Act" in July 2025. The "CLARITY Act" aims to address years of regulatory uncertainty through a structured framework that defines digital assets, intermediary roles, and disclosure obligations. The purpose of the bill is to establish a unified federal regulatory framework for the digital asset market and clarify which assets are regulated by the SEC and which by the CFTC to end long-standing policy uncertainties and promote innovation and investor protection. The focus of the bill is on regulating market activities rather than assets, establishing registration and conduct standards for exchanges, brokers, and dealers to strengthen market integrity and transparency, aiming to replace previous "enforcement-style regulation" with legal provisions. Clear Asset Classification Criteria CFTC: Given exclusive regulatory authority over "digital commodities" and their spot markets. The bill generally provides that if the asset's corresponding blockchain is "functional and decentralized" (such as Bitcoin), it falls under CFTC jurisdiction. SEC: Continues to regulate digital assets falling under the "securities" category, those with investment contract characteristics (satisfying the Howey test) or assets that have not yet achieved decentralization standards on the blockchain. SEC retains supervisory authority over primary market issuances, disclosure requirements, and investor protection. Clarifying SEC and CFTC's Regulatory Jurisdictions The "CLARITY Act" aims to break the legislative deadlock in the industry through a dual approach: defining digital assets and dividing regulatory responsibilities based on their operating mechanisms. The bill abandons ad hoc enforcement measures in favor of a comprehensive framework covering asset classification, intermediary roles, and mandatory disclosures. CFTC: Has primary jurisdiction over digital commodity trading, especially in secondary markets, spot markets, and trading platforms. SEC: Retains jurisdiction over initial issuances, investor protection, disclosure requirements, and initial sales. Senate Process: Agriculture Committee hearing postponed to Thursday, Banking Committee hearing postponed with date TBD Taking the "CLARITY Act" as a reference, the Senate Banking Committee (with a focus on securities/SEC) and the Senate Agriculture Committee (focusing on commodities/CFTC) need to review their respective versions of the bill. Subsequently, the texts of the two bills need to be merged, coordinated with the House's version, and then submitted for a full Senate vote. Democratic senators unveiled a series of proposed amendments last Friday, highlighting the areas of disagreement. These proposals include clauses mandating senior government officials to fulfill ethical commitments and strong language requiring regulatory agencies to be led by bipartisan committees. The Senate Banking Committee also needs to pass market structure legislation, having postponed the hearing on its version of the bill earlier this month, but unlike the Agriculture Committee, it has not set a new date yet. Currently, this cryptocurrency bill is facing challenges as it progresses between the Senate and the Senate committees. Approval from both committees is necessary for it to become law in the United States. The SEC and CFTC have also postponed their joint press conference, originally scheduled for Tuesday, to Thursday at 2 p.m. Eastern Time. The specific approval process for the bill is as follows: 1. The Senate Banking Committee (hearing postponed, date TBD) and Agriculture Committee (hearing postponed to Thursday) will comprehensively amend and progress the bill. 2. The unified version will be submitted for a full Senate vote. 3. Approval from the Senate (at least seven Democrats are needed, and more may be required if Republicans do not unanimously vote in favor). 4. Returning to the House for the final approval vote (expected to have a low threshold). 5. Submission to be signed by President Trump. Impact on Investments For years, the cryptocurrency industry has been pushing for market structure legislation to protect itself from the influence of unfriendly U.S. presidential administrations. During President Biden's administration, several cryptocurrency exchanges, including Coinbase, were prosecuted by the SEC for operating unregistered exchanges, clearinghouses, and brokerage companies. While most of these cases were closed during the more crypto-friendly Trump administration, the industry still hopes to obtain protection through legislation. The "CLARITY Act" aims to resolve this deadlock by clearly defining digital assets and assigning regulatory responsibilities based on asset types and related activities. The predetermined framework allows market participants to understand the rules that apply in advance, rather than facing uncertainty due to enforcement actions. Analysts point out that regulatory clarity can eliminate the "regulatory risk premium," leading to valuation expansion for compliant platforms and high-quality tokens. If U.S. law ultimately clarifies how federal regulatory agencies will regulate digital assets, the management, tracking, and trading of cryptocurrencies will become more convenient, and more investors may participate, thereby increasing the value of each token. However, there is still much work to be done before this can happen, and moving legislation through Congress is currently at a tricky crossroads. For a long time, cryptocurrency enthusiasts have seen themselves as investors on the cutting edge, eager to challenge the existing system and seek investment opportunities outside the mainstream. However, the direction legislators are currently working towards is integrating cryptocurrencies into the mainstream system. Cryptocurrency platforms like Coinbase and Kraken will need to register with federal regulatory agencies, which will require these companies to comply with strict regulations when handling user assets. Stablecoin issuers like Circle and Tether will have to adhere to stringent regulatory standards similar to those of the banking industry. Many asset management firms and banks are taking a wait-and-see approach to cryptocurrencies due to the SEC's "enforcement-style regulation." The bill, by clarifying the responsibilities of the SEC and CFTC, will significantly reduce the legal risks for institutions holding and trading digital assets. Clear classification standards (securities vs. commodities) will accelerate the launch of compliant investment tools for programmable blockchain assets like Ethereum and Solana (such as ETFs and tokenized funds).