What is in the crypto market structure bill? — A 2026 Insider’s Perspective

Defining the Legislative Framework

The cryptocurrency market structure bill, often referred to as the Digital Asset Market Clarity Act or the Digital Commodity Intermediaries Act, is a comprehensive piece of legislation designed to establish a clear regulatory roadmap for the digital asset industry in the United States. As of early 2026, this legislation has become a focal point for lawmakers seeking to transition the industry from a period of "regulation by enforcement" to a structured, statutory environment. The primary goal is to provide "rules of the road" that protect retail investors while ensuring that technological innovation remains within American borders.

The bill addresses the long-standing ambiguity regarding which federal agencies oversee specific types of digital assets. By creating a formal classification system, the legislation aims to eliminate the jurisdictional tug-of-war between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This clarity is intended to encourage institutional adoption and provide a safer environment for participants using platforms like WEEX to manage their digital portfolios.

Primary Regulatory Authorities

The Role of the CFTC

A central pillar of the current market structure bill is the significant expansion of the CFTC’s authority. Under the proposed rules, the CFTC is granted primary oversight of "digital commodities." This includes major assets like Bitcoin and potentially Ethereum, depending on their level of decentralization. The Senate Agriculture Committee recently advanced a version of the bill that specifically empowers the CFTC to regulate digital commodity intermediaries, including brokers, dealers, and trading platforms. This move is seen as a way to provide a more tailored regulatory approach than the traditional securities framework.

The Role of the SEC

While the CFTC gains ground, the SEC retains jurisdiction over digital assets that are classified as "investment contract assets." The bill seeks to refine the criteria used to determine when a token is a security. One of the most significant changes involves the treatment of secondary market transactions. Even if an asset was initially sold as part of an investment contract, the bill suggests that subsequent sales on exchanges could be regulated by the CFTC as commodity transactions, provided certain decentralization milestones are met. This distinction is crucial for the liquidity and operation of the broader market.

Key Provisions and Requirements

The legislation is not merely about agency jurisdiction; it introduces specific operational requirements for all participants in the ecosystem. These provisions are designed to modernize the financial infrastructure and integrate blockchain technology into the regulated economy.

Feature	Requirement under the Bill	Primary Objective
Registration	Mandatory registration for exchanges and brokers with the CFTC or SEC.	Market transparency and oversight.
Asset Segregation	Strict separation of customer funds from corporate assets.	Prevention of commingling and loss of user funds.
Disclosures	Mandatory reporting on token functionality and decentralization.	Informed decision-making for retail investors.
Stablecoin Rules	Requirements for high-quality liquid reserves and audits.	Maintaining the 1:1 peg and systemic stability.

Impact on Trading Platforms

Registration and Compliance

For digital asset exchanges, the bill introduces a formal registration regime. Platforms must register as digital commodity exchanges if they facilitate the trading of commodities. The bill also provides for "expedited registration" and "provisional status" to ensure that the transition to the new regulatory environment does not cause immediate market disruptions. This allows compliant platforms to continue operations while their full applications are processed by the relevant commissions.

Trading and Settlement Rules

The legislation requires the SEC to modernize its Alternative Trading System (ATS) framework. This includes permitting "disintermediated trading" and "real-time settlement." Traditionally, financial markets rely on multiple intermediaries to clear and settle trades over several days. The market structure bill recognizes that blockchain technology allows for near-instantaneous settlement, and it seeks to update federal law to accommodate this efficiency. For those engaged in spot trading, these changes could eventually lead to more robust and transparent market pricing.

Stablecoins and Yield Restrictions

Stablecoins are a major focus of the 2026 legislative efforts. The bill establishes a framework for "payment stablecoins," requiring issuers to hold reserves in highly liquid assets like Treasury bills or central bank deposits. A point of significant debate in recent months has been the restriction on "stablecoin rewards" or yield offerings. Some versions of the bill, such as the CLARITY Act, seek to limit the ability of stablecoin issuers to offer interest-like returns to retail users. This is intended to prevent "bank runs" where capital leaves traditional savings accounts in favor of higher-yielding digital assets, a concern recently highlighted by major global banking institutions.

Decentralized Finance and Privacy

DeFi Protocols

The treatment of Decentralized Finance (DeFi) remains one of the most complex aspects of the market structure debate. Earlier drafts of the bill included provisions for non-controlling blockchain developers and decentralized protocols, but some of these sections were bracketed or removed in the most recent Senate updates. The current focus is on identifying "intermediaries" who have sufficient control over a protocol to be held accountable for compliance, while attempting to avoid stifling the underlying open-source code development.

Anti-Money Laundering (AML)

The bill reinforces the application of the Bank Secrecy Act to the digital asset space. Intermediaries are required to implement robust Know Your Customer (KYC) and AML programs. While the bill aims to protect user privacy, it also seeks to ensure that digital assets are not used for illicit activities or to circumvent national security measures. This balance is critical for the long-term legitimacy of the industry.

The Path to Final Passage

As of February 2026, the legislative process is in a critical phase. The Senate Agriculture Committee has advanced its version, but the Senate Banking Committee must also approve its companion bill before the two can be merged for a full Senate vote. While there is bipartisan support for the general idea of "clear rules," disagreements persist over the specific boundaries of SEC authority and the strictness of stablecoin regulations. Industry leaders, including those involved in futures trading, are closely watching these developments, as the final bill will dictate the operational costs and legal protections for the next decade of digital finance.