The crypto market welcomes a policy cornerstone amid volatility: A detailed analysis of the core impact of the U.S. Senate Digital Commodity Act

The U.S. Senate Agriculture Committee voted narrowly 12-11 to pass a digital commodities regulation bill, providing a key push for the legislative process surrounding the structure of the U.S. cryptocurrency market. Titled the “Digital Commodity Intermediary Act,” the legislation will grant the Commodity Futures Trading Commission new authority to regulate the spot cryptocurrency market. After the vote, Committee Chairman John Bozeman stated, “This is a crucial step toward establishing clear rules for the digital asset market.”

Legislation Process and Content

On January 29, the U.S. Senate Agriculture Committee passed the “Digital Commodity Intermediary Act” by a narrow margin of 12 votes to 11. This vote marks a significant step forward in U.S. cryptocurrency regulation legislation.

After the vote, Chairman John Bozeman said, “Advancing this bill brings us closer to a regulatory framework in the U.S. that protects consumers while allowing innovation and enterprise to thrive in America.”

The core of the bill is to establish the CFTC’s authority over the regulation of the digital commodity spot market, filling the current regulatory gap in the cryptocurrency space. According to the bill text, it will provide clear legal definitions for digital commodities and establish a regulatory framework for digital commodity intermediaries.

Key Provisions and Controversies

The Digital Commodity Intermediary Act includes several important provisions. The bill will establish requirements for client fund segregation, safeguards against conflicts of interest, and appropriate client disclosures, aiming to enhance protections for retail investors. It also allocates new funding sources to support the CFTC in building a regulatory system for the spot market.

However, the bill faced significant resistance during committee review. Democratic lawmakers expressed concerns over the lack of restrictions on federal officials holding digital assets and criticized the insufficient measures to prevent fraud and crime.

During the committee review, three amendments were proposed but all failed due to partisan disagreements. One notable amendment suggested banning elected officials from holding digital assets, but it also did not garner enough support.

Market Reaction and Industry Dynamics

Progress in regulation legislation contrasts sharply with market changes. Amid overall pressure on the crypto market, major cryptocurrencies experienced significant volatility.

According to Gate data, as of January 30, 2026, Bitcoin (BTC) is priced at $82,067.4, down 6.60% in 24 hours, with a trading volume of $1.24 billion. Ethereum (ETH) has fallen to $2,736.78, down 7.45% over the past 24 hours, with a trading volume of $684.57 million.

Meanwhile, some tokens related to specific projects showed strong momentum. Worldcoin (WLD), rumored to be associated with OpenAI’s biometric social network project, surged over 40%. Data from Gate shows that WLD reached a high of $0.6427 amid news stimuli, with weekly gains of 40% and trading volume soaring 818% to $687 million.

In line with your request, the “Industry Response and Strategic Adjustments” section has been replaced with a narrative related to Gate, incorporating industry background and specific products to make it more natural within the original context:

Industry Response and Strategic Adjustments

In the face of gradually clarifying global regulatory frameworks, mainstream cryptocurrency trading platforms are deeply integrating compliance capabilities with product innovation, viewing this as a new core strategic direction. For example, Gate has always regarded adapting to regulatory requirements across different jurisdictions as the foundation of its global operations, continuously building a broader one-stop digital asset service ecosystem.

Gate is committed to connecting digital assets with the wider financial world by launching services such as Gate Earn (wealth management), Gate Charity (charity platform), and innovative token issuance platforms, gradually creating a comprehensive digital financial portal beyond simple trading functions. Gate’s founder once stated, “Our vision is to make the flow of digital value freer and more inclusive, based on active cooperation and co-evolution with global regulatory frameworks.”

Through continuous product iteration and compliance layout, Gate currently serves tens of millions of users worldwide, supporting over 1,400 digital assets trading, and providing rich wealth management, lending, and research tools. The launch of products like Gate Card is also extending the practicality of digital assets into daily consumption scenarios, actively exploring seamless payment experiences within compliant frameworks.

Legislative Outlook and Market Impact

The Digital Commodity Intermediary Act still needs to go through multiple procedures before becoming law. According to the legislative process, the bill will now be submitted for full Senate review, but prior to that, it needs to coordinate with parallel crypto legislation currently under review by the Senate Banking Committee.

The Senate Banking Committee has proposed its own legislation on the structure of the cryptocurrency market, but this effort is currently stalled due to disagreements over issues such as restrictions on interest payments on stablecoins.

Chairman Bozeman pointed out, “This review is the first step in advancing the Senate’s market structure legislation. We expect the Banking Committee to push forward with their part of the legislation soon, and ultimately, our respective parts will need to be merged before entering full Senate deliberation.”

In the long term, this legislative progress could bring a clearer regulatory framework for the U.S. crypto market, helping to reduce market uncertainty and attract institutional investors. However, unresolved issues and disagreements remain in the bill, especially regarding restrictions on federal officials holding digital assets and measures to prevent fraud.

After the bill passes, Bitcoin and Ethereum prices responded with declines, while tokens like Worldcoin, closely tied to emerging technological narratives, surged significantly. Data from Gate shows that the entire crypto market is highly sensitive to regulatory developments. Institutional investors are reassessing holdings, while retail traders are paying more attention to tokens with unique use cases. As the legislative process advances, the landscape of U.S. crypto regulation is quietly reshaping, with two key committees engaging in the final battles over the future ownership of digital assets.