Crypto market structure legislation is moving closer to a decision point, even as divisions deepen across the industry. Galaxy CEO Michael Novogratz has publicly backed advancing the bill, arguing that progress matters more than perfection as lawmakers attempt to finalize a sweeping regulatory framework in early 2026.
Speaking in a CNBC interview, Novogratz said the industry should accept compromise to ensure momentum. He emphasized that passing legislation now would allow the sector to grow, adding that flaws could be addressed later. His comments come as Democratic staff from the Senate Agriculture and Banking Committees prepare to hold discussions with crypto industry representatives, signaling continued negotiations after recent delays.
Negotiations faltered this week over stablecoin rewards, a sensitive issue following the GENIUS stablecoin law. While the law restricts issuers from paying interest directly, it allows third-party platforms to offer rewards. Banking groups argue this creates unfair competition, while crypto firms counter that the issue was already debated and settled.
The divide widened after a major crypto exchange withdrew its support for the bill, citing concerns over tokenized equities, DeFi provisions, stablecoin rewards, and regulatory authority. Shortly afterward, a planned committee markup was postponed, highlighting the bill’s fragile status.
Despite setbacks, Novogratz remains optimistic that a workable compromise will emerge, stressing that regulatory clarity even if imperfectcould provide the foundation for long-term industry growth.
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