Crypto Market Structure

Market Operation

24/7 continuous trading and price discovery

Strategic Objective

Solidify US Dollar dominance and bring offshore entities under US jurisdiction

Classification Criteria

Sufficient decentralization and level of intermediation

Key Legislative Drivers

Genius Act (Stablecoins) and Clarity Act (Broader Structure)

Primary Regulatory Goal

Establish clear framework and move away from regulation by enforcement

Proposed Asset Categories

Digital commodities, investment contract assets, and permitted payment stablecoins

2025-12-15

2025-12-31

By Brad Lipton The Senate has announced that it will consider a significant bill on cryptocurrency in the coming weeks, the second in a planned trilogy of crypto laws. This bill would govern crypto’s “market structure”—how companies offering crypto are classified for regulation. If you need a bit of a refresher on how the government regulates crypto under existing law, including what oranges and onions have to do with it, take a look at my previous blog post on this topic. [...] With respect to enforcement, the bills would divide crypto assets into three novel categories—“digital commodities,” “investment contract assets,” and “permitted payment stablecoins.” These categories would be based on complex distinctions regarding whether the cryptocurrency is “sufficiently ‘decentralized.’” (So, for example, the bills rely heavily on how much companies “intermediate” between users.) These distinctions are not really related to the economic reality of the investment. This [...] This blog post summarizes the House and Senate bills and the potential effects they could have in plain language. The bills’ weak, patchy regulatory framework creates financial risks that could have vast implications for the economy and people—far beyond just the market for crypto. Indeed, these bills could dramatically undermine the way that the government protects investors more broadly in the United States. Critics of the bills note that loopholes and lax regulation like those proposed in

The market structure bill is intended to define how the Securities and Exchange Commission and Commodity Futures Trading Commission can oversee the crypto markets, designating the CFTC a primary spot market regulator for crypto and more clearly defining how securities laws might apply to the sector. [...] Crypto Council for Innovation's CEO Ji Hun Kim welcomed the ongoing bipartisan efforts from lawmakers and staff to tackle thorny market structure challenges, while underscoring the need for a full-fledged regulatory framework. "Establishing a comprehensive market structure framework is essential to protect consumers and ensure innovation remains anchored in the United States, and we look forward to next steps in early 2026 to finish the job," Kim said. [...] ## The Senate will not hold a market structure markup hearing this month, pushing any progress toward a new crypto law to next year. ByNikhilesh De|Edited by Jesse Hamilton Updated Dec 16, 2025, 5:04 a.m. Published Dec 15, 2025, 9:32 p.m. The U.S. Senate Banking Committee will not have any markup hearings on market structure legislation defining how federal regulators can oversee the industry until next year, punting on a hoped-for hearing that many sought to hold near the end of this week.

The crypto market is a dynamic and rapidly evolving ecosystem. It operates 24/7, unlike traditional stock markets, allowing continuous trading and price discovery. The total market capitalization of cryptocurrencies, often referred to as the “crypto market cap,” represents the combined value of all cryptocurrencies in circulation. This continuous operation allows for greater flexibility and access to trading for investors worldwide, regardless of their time zone. [...] The decentralized nature of the crypto market means that there is no central authority overseeing all transactions. Instead, transactions are verified by network participants through consensus mechanisms, such as Proof of Work (PoW) or Proof of Stake (PoS). This decentralization provides several benefits, including increased security, reduced risk of censorship, and enhanced privacy for users. However, it also introduces challenges, such as regulatory uncertainty and the potential for market [...] Crypto exchanges are the primary venues where buying and selling occur. These platforms list various cryptocurrencies, such as Bitcoin, Ether, or Ripple, and allow users to trade them against other cryptocurrencies or fiat currencies. Popular exchanges include Binance, Coinbase, and Kraken. Each exchange offers a unique set of features, including different trading pairs, fee structures, and security measures, and some even have their own wallet. The choice of exchange can significantly impact

The crypto market entering 2026 shows clear differences from earlier growth phases, driven by tighter regulatory oversight, expanded institutional products, and more evolved use cases. These factors are influencing how crypto assets are issued, traded, and integrated into existing financial systems. This article examines crypto market trends expected in 2026 and their potential impact on market structure. ### Current market context [...] Institutional participation is expected to remain a major factor for crypto markets in 2026, with capital flows increasingly shaped by regulated investment products, financial infrastructure integration, and corporate balance-sheet decisions. Compared with earlier cycles, institutional exposure is becoming more structured and linked to long-term allocation strategies rather than short-term trading. These dynamics influence liquidity conditions, volatility patterns, and the relative performance