- Director of government relations for the US Blockchain Association believes that the market structure bill is probably a two-year thing.
- Analysts at CoinDesk believe that the bill could face a potentially hostile Senate and White House.
- The market structure bill is therefore unlikely to be received as is from Senate Democrats and the White House.
Experts, namely the director of government relations for the US Blockchain Association and CoinDesk analysts believe the crypto bill has a long way to go before being accepted as legislation.
While the market structure bill has garnered support from Democrats, in addition to Republicans, it remains unlikely that the legislation be received as is by the Senate and the White House.
Also read: Chainlink price likely to rally as CCIP testnet activity gathers steam
Crypto market structure bill unlikely to be signed off as is despite Bipartisan support
While the crypto market structure bill garnered bipartisan support, despite being led by Republicans, analysts at CoinDesk believe it is unlikely that the bill gets signed off as is. Once the bill got past the House Committee, it was considered a major win for crypto legislation in the US.
CoinDesk analysts believe that the Senate and the White House is likely to be potentially hostile towards the legislation in its current form. Supporting analysts’ view, Director of government relations for the US Blockchain Association, Ron Hammond told CoinDesk:
I think market structure, realistically, it’s going to probably be a two-year thing. The market structure bill won a variety of Democrats on a variety of fronts.
Analysts note that the Senate Banking Committee chairman, Sen. Sherrod Brown (D-Ohio) is a stark critic of cryptocurrencies and the Senator has shown little enthusiasm for weighing in on the legislation so far. This adds to the thesis that the legislation needs further changes before being approved and it is unlikely that the win comes easy, to crypto market participants and the ecosystem in the US.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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