The cryptocurrency market is showing signs of temporary relief as Bitcoin and major altcoins try to stabilize after weeks of sustained selling pressure. Prices also rose slightly, easing the recent bearish intensity. However, emotions remain fragile. Many analysts argue that this move fits the profile of a rally rather than the start of a strong pullback, pointing to a still weak market structure and major unresolved and regulatory risks.
Against this background, the draft market structure bill released by the US Senate is attracting a lot of attention. The proposed framework represents a potential structural change in the way crypto assets are treated within the US financial system.
The bill aims to clearly distinguish which crypto-assets fall under the definition of assets and qualify as securities, while providing appropriate regulatory oversight. To date, the US regulatory approach has relied heavily on enforcement actions, creating uncertainty for investors, developers, and institutions alike. By defining the classification method in advance, the proposal aims to reduce ambiguity and provide a cleaner working environment.
As markets digest this information, the focus shifts from headline-driven volatility to long-term structural implications. Whether this regulatory specificity translates into stable reliability is still an open question.
Regulatory Clarity Signals a Shift
A report from XWIN Research Japan highlights an important difference in the latest proposal of the US market structure: completely decentralized networks and DeFi protocols are not treated as traditional financial intermediaries. Developers, verifiers, and operator nodes are not automatically classified as regulated entities, reflecting official recognition of classification as a key structural attribute rather than a loophole to be closed.
This distinction makes sense, as it reduces legal uncertainty for open source contributors and preserves the permissionless nature of shared infrastructure.
In contrast, medium enterprises face a clearly defined control perimeter. Exchanges, brokers, and custodians are expected to comply with strict rules of registration, asset classification, and disclosure. Rather than targeting innovation, these requirements appear to be designed to standardize market infrastructure and target mid-sized crypto businesses with existing financial standards.
Within this framework, Bitcoin, Ethereum, stablecoins, and existing ETFs are assumed to remain integrated into the US financial system, strengthening their status as legitimate financial instruments.
On-chain data is already showing this change. Metrics from CryptoQuant show that around Bitcoin’s $90,000 level, selling activity remains muted while medium and large-sized spot orders dominate. This pattern suggests that there is no speculative or panic-driven exit, but a stop measured by large investors.
Taken together, these signs mean that the market is slowly shifting from a topic-driven behavior to a framework-driven phase. Regulated transparency may not cause immediate price movement, but it is already influencing how major currencies position themselves across the crypto space.
Crypto Market Capitalization Enters Consolidation Phase
The overall cryptocurrency market capitalization chart shows the market in consolidation after an aggressive multi-quarter expansion. Following a strong development from late 2023 to mid-2025, the total market value peaked near the $3.8–$4.0 billion area before entering a correction phase. Since then, price action has shifted to a wider range, with higher dynamic pressures in a more structured structure.
Currently, the total market is hovering around the $3.2 trillion level, which coincides with a key resistance area that has served as support many times. The weekly structure suggests a cooling phase instead of a crack. The price remains above the 200-week moving average, which continues to move higher and reinforces the view that the main market trend is still building.
Short-term moving averages have been flat, showing indecision and reduced momentum after the previous bullish move. Volume has eased from highs, indicating that aggressive distribution pressure has eased, but strong demand for expansion has not yet returned. This combination is typical of the combination of the central cycle rather than the terminal weakness.
From a structural perspective, the market is digesting previous gains while maintaining a very low frame relative to previous cycles. The continued hold above the $3.0 trillion region keeps the broad bullish framework strong. However, failure to protect this area will expose the market to a deep retracement to long-term trend support.
Featured image from ChatGPT, chart from TradingView.com
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