Galaxy Digital’s Alex Thorn Sees Market Structure Bill As ‘Bullish Catalyst’

Galaxy’s Alex Thorn says the crypto market structure bill could drive prices higher if passed, while failure would mainly hurt market sentiment.

• Galaxy Research Director Alex Thorn said that if the crypto market bill were passed, it could lead to higher crypto prices.
• He identified unresolved issues around decentralized finance regulation, developer projections, stablecoin yield, and Treasury authority.
• Thorn said that upcoming Senate committee votes and bipartisan support will be decisive for the bill’s prospects. 

Galaxy Digital (GLXY) Research Director Alex Thorn said passage of a U.S. crypto market structure bill could act as a catalyst for higher crypto prices. 

In an X post earlier this month, Thorn said that the Congress’s effort to overhaul crypto regulation has “shifted to overdrive,” pointing to scheduled markups in both the Senate Banking and the Senate Agriculture Committees. He wrote that enactment of a bipartisan bill that “clearly defines token classifications, delineates regulatory jurisdictions, and protects developers and non-custodial protocols” would be a “major bullish catalyst for crypto adoption.”

Galaxy (GLXY) closed at $34.31 on Friday. On Stocktwits, retail sentiment around Galaxy Digital remained in ‘extremely bullish’ territory, accompanied by’extremely high’ chatter levels over the past day.

Key Policy Disputes

According to Thorn, the negotiations have expanded beyond basic market structure questions into what he described as a “Christmas tree bill,” with additional items attached. 

He identified several unresolved issues, including how decentralized finance should be regulated, whether non-custodial developers should be exempt from anti-money-laundering (AML) and registration requirements, how yield from stablecoin reserves should be handled, and the scope of the Treasury Department’s sanction authority.

Thorn noted that a successful vote would likely require all Republican members and at least two Democrats voting in favor, adding that a “strong bipartisan vote” would improve the bill’s chances of reaching the president’s desk.

The Senate Banking Committee was scheduled to debate amendments on the market structure bill last Thursday. However, it has been postponed, and the final vote has not yet been scheduled. 

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