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The upcoming Crypto Market Structure Bill is a major piece of US legislation aimed at creating a clear and comprehensive regulatory framework for digital assets. It’s being spearheaded by Senator Cynthia Lummis, among others, with the goal of passing it before the end of 2025.
The purposes of the bill include the following:
Clarify regulatory oversight: Define which federal agencies — SEC or CFTC — regulate different types of digital assets.
Distinguish asset types: Create legal definitions for digital asset securities vs. commodities.
Protect consumers: Introduce guardrails to prevent fraud and market manipulation.
Encourage innovation: Provide regulatory clarity to help US-based crypto firms thrive without moving overseas.
Regarding key features of the bill, a new “ancillary assets” category has been introduced to classify digital tokens that fall outside traditional definitions of securities or commodities. This move complements a broader stablecoin framework built upon the GENIUS Act, which was signed into law earlier this year to regulate stablecoin issuance and oversight.
Meanwhile, the Senate Banking Committee and the Agriculture Committee — representing SEC and CFTC jurisdictions, respectively — are actively working to reconcile their portions of the bill to ensure regulatory cohesion. The Senate’s version of the legislation also draws from the bipartisan CLARITY Act, previously passed by the House, providing a foundational structure for regulating digital assets.
Clarify regulatory environment
By introducing a formal classification for “ancillary assets,” the bill acknowledges that many tokens do not fit neatly into the traditional definitions of securities or commodities. This is a major step forward in resolving the regulatory ambiguity that has long plagued the crypto industry, as overlapping enforcement actions from the SEC and CFTC have created confusion and stifled innovation.
Unlock institutional participation
In the long term, this clarity could further unlock significant institutional participation. Financial institutions, hedge funds and asset managers have historically been cautious about entering the crypto space because of unclear compliance obligations.
The legislation builds on the GENIUS Act, which regulates stablecoins, a critical component of the crypto ecosystem. By establishing standards for reserve backing, transparency and issuer accountability, the bill lays the groundwork for stablecoins to be integrated into mainstream financial infrastructure. This could accelerate the use of stablecoins in cross-border payments, remittances and decentralized finance (DeFi), while also encouraging central banks and fintech firms to explore tokenized fiat alternatives.
Source: CoinGlass
Source: DefiLlama
Let’s look at the spot ETF AUM and total supply of stablecoins since the approval of the GENIUS bill. As shown above, both indicators have continued to climb after the approval in June 2025. However, it’s worth noting that momentum begins to build before the official approval. This time, it seems that the market hasn’t yet fully factored in the impact of the Crypto Market Structure Bill, to which the mainstream media hasn’t given much attention recently. We expect more media coverage to be on the horizon regarding the approval, which is scheduled to occur within one to two months.
Impact on crypto prices
Short-term price target | Long-term price target | |
BTC | $150,000 | $500,000 |
ETH | $5,000 | $10,000 |
Source: Bybit
Crypto has entered a secular trend, and Bybit has highlighted our short- and long-term predictions for BTC and ETH in our previous article.
The monetary policies affecting global risk assets are of more significance in the short term, especially the results from the September Fed meeting, which could cast a weight on short-term prices. As highlighted, the bill is expected to be passed in November/December 2025, though the effects of the bill will take time to materialize.
This bill heralds cross-departmental friendliness toward crypto
Importantly, this bill reflects a collaborative effort between the Senate Banking Committee and the Agriculture Committee, which oversee the SEC and CFTC, respectively. Their reconciliation of regulatory roles signals a move toward a hybrid oversight model in which the SEC handles disclosures and investor protections for ancillary assets, while the CFTC regulates their market behavior as commodities. This dual approach balances innovation with risk management, allowing emerging projects to grow without prematurely being classified as securities.
Over time, this legislation could also influence global regulatory standards. As the US establishes clearer rules, other jurisdictions may follow suit, leading to greater international harmonization. This would benefit cross-border crypto businesses and reduce the risk of regulatory arbitrage, through which companies relocate to countries with looser rules.