Galaxy's Thorn issues warning: The voting on the Cryptocurrency Market Structure Bill becomes a turning point for the market

Movements surrounding the U.S. Senate’s Cryptocurrency Market Structure Bill are attracting industry attention. Alex Thorne, head of Galaxy Research, points out that the outcome of the bill’s vote could have a significant impact on the overall price formation of the cryptocurrency market. According to Thorne’s analysis, the future developments could serve as a turning point in market sentiment.

Uncertain Voting Outcome, Thorne Highlights Challenges in Vote Count

The current voting situation in the Senate appears to favor the Republicans, but there are hurdles to passing the bill. According to reports from PANews, the current vote tally stands at 53 to 47. Normally, 60 votes are required for passage, meaning that the Republicans alone are insufficient, and they need to secure the support of 7 to 10 Democrats.

As Thorne points out, this voting landscape is highly fluid. The fate of the bill hinges on the decisions of a few Democratic lawmakers. Industry observers are closely watching the schedule of the vote, and the expected volatility in the voting results could lead to increased market volatility.

DeFi and Stablecoin Regulations at the Center, Thorne Explains the Bill’s Significance

Thorne emphasizes once again that this bill is not merely a formal legislative act but has the potential to bring about fundamental structural changes in the crypto industry. The bill addresses a wide range of issues, including clarifying DeFi classification standards for anti-money laundering measures, rules for handling stablecoin reserve yields, protections for non-custodial developers, and SEC authority over token issuance and restrictions.

If these regulatory frameworks are established, barriers for institutional investors will decrease, and the overall institutional infrastructure of the crypto market will be solidified. Thorne believes that such structural changes could be the primary drivers of short-term price increases.

Passage or Rejection Will Have Different Impacts on the Market

The market effects of the bill passing versus being rejected are significantly different. If passed, as Thorne notes, the legitimacy of cryptocurrencies would be recognized at the national level, providing a strong impetus for long-term adoption. Chain reactions such as increased trust from institutional investors and expanded trading volumes are expected.

Conversely, even if the bill is rejected, the direct negative impact on the fundamental aspects of the crypto industry is considered relatively limited. However, Thorne is concerned about deteriorating market psychology and investor sentiment. Continued regulatory uncertainty could increase downside risks and trigger short-term price adjustments.

Currently, industry analysts, including Thorne, are focused on the outcome of the vote. How much the cryptocurrency market has priced in the importance of this legislation, and whether the market reaction after the vote aligns with Thorne’s analysis, will be key points to watch in the future.