U.S. Senate Faces a Crucial Test: Passing the Up and Down Votes on Crypto Regulation

Latest analysis from Galaxy Research reveals the complexities faced by the US Senate in passing cryptocurrency market structure legislation. With a voting schedule set for the third week of January, this regulation must overcome two hurdles simultaneously: the filibuster threshold requiring 60 votes and the simple majority needed for passage. For investors and industry players in crypto, the outcome of this vote will be a decisive momentum for widespread cryptocurrency adoption in the United States.

Top Passage: The 60-Vote Standard as the Main Obstacle

According to Galaxy Research Director Alex Thorn, the top passage is the first challenge that is more significant than the seat count balance. The current Senate composition shows a 53 versus 47 split, but the filibuster system requires 60 votes to pass legislation. This means that out of the 53 majority senators, support from 7 to 10 minority senators is still needed to reach that threshold.

Bottom Passage: The Difficult-to-Acquire Support from Democrats

Bottom passage—support from the opposition—is a critical factor that is equally complex. Besides securing the majority votes, there must be a shared understanding of the benefits of this regulation for the entire crypto economy. This challenge is becoming more difficult given the various party perspectives on blockchain technology regulation and digital assets.

Policy Core: From DeFi to SEC Authority

This crypto market structure bill is not just a procedural formality. It includes several strategic provisions that will shape the industry’s future. First, rules on the classification of DeFi under strict anti-money laundering standards. Second, special treatment for stablecoin revenue reserves to provide greater transparency. Third, legal protections for non-custodial developers operating in regulatory gray zones. Fourth, explicit authority for the SEC to regulate token issuance.

Market Impact: Two Different Scenarios

If both the top and bottom passages are achieved and the bill is approved, it could act as a major catalyst for widespread cryptocurrency adoption. Clear regulation will reduce market uncertainty and attract traditional institutions into the digital ecosystem. Conversely, if both passages fail and the bill does not advance, the impact on the fundamentals of the crypto industry may not be substantial in the long term. However, this failure will trigger significant negative market sentiment, at least in the near term.