Cryptocurrency bill hearings may be delayed, market "greed" index soars, how should investors respond?

Washington Time, January 14 — Wyoming Republican Senator Cynthia Lummis told Bloomberg that the Senate Banking Committee’s scheduled hearing on the Cryptocurrency Market Structure Bill “may be postponed.”

Meanwhile, the U.S. Senate Agriculture Committee has announced that its version of the Cryptocurrency Market Structure Bill revision hearing has been rescheduled from January 15 to 3:00 PM on January 27.

01 Hearing Postponement

The Senate Banking Committee’s hearing on the Cryptocurrency Market Structure Bill was originally scheduled for this Thursday, with a vote on the bill expected to conclude the session.

However, this plan may face uncertainties. Senator Lummis revealed to Bloomberg on Wednesday afternoon that the hearing “may be delayed.” She emphasized that there is no confirmed news yet about the postponement of the Thursday hearing.

This is not the only bill review that might be delayed. The U.S. Senate Agriculture Committee has officially announced that its version of the Cryptocurrency Market Structure Bill revision hearing has been postponed from January 15 to January 27.

02 Bill Controversies

The potential delay of the hearing reflects the current lack of consensus among legislators regarding the bill.

Multiple sources told CoinDesk that not all members of the Banking Committee are in agreement, and this lack of consensus could lead to a postponement of the hearing.

Previously, senators had proposed over 75 amendments to the cryptocurrency bill, covering areas such as yields and decentralized finance.

These amendments highlight disagreements among lawmakers on how to regulate this emerging industry. Notably, several Republicans, including Senator Tom Tillis, have expressed concerns about the wording related to stablecoin yields in the bill.

03 Market Reaction and Sentiment Shift

Despite regulatory uncertainties, the cryptocurrency market showed signs of a strong recovery on January 15.

According to Alternative data, the Crypto Fear & Greed Index rebounded sharply to 61 (from 48 yesterday), returning to the “greed” zone.

This index combines multiple indicators, including volatility, market trading volume, social media activity, market surveys, Bitcoin market share, and Google trending keywords, serving as an important reference for market sentiment.

Funds are flowing back into the crypto market on a large scale. Data shows that on Tuesday, over 7.6 billion USD in capital flowed into more than ten Bitcoin ETFs, marking the largest single-day net inflow since October last year.

Bitcoin’s price has already shown signs of recovery, with a total increase of 10% since the beginning of the year, regaining the $97,000 level.

The second-largest global cryptocurrency, Ethereum, also performed strongly, with a single-day increase of up to 6% on Wednesday, and a total gain of 13% since the start of the year.

04 Gate’s Multi-Asset Trading Expansion

In response to changing regulatory environments and market volatility, Gate is expanding its trading ecosystem to offer users more diversified asset allocation options.

Gate has further expanded its TradFi features, broadening its contract trading to include traditional financial assets such as gold, forex, stock indices, commodities, and popular stocks.

This development marks Gate’s transition from solely crypto asset trading to traditional financial price products, further strengthening its multi-asset trading framework.

In terms of trading mechanisms, Gate TradFi contracts align with conventional financial market practices, including fixed trading hours and market close arrangements.

Leverage settings are tiered, with major products like forex and indices supporting up to 500x leverage, while stock CFDs support up to 5x leverage.

Gate TradFi employs a margin-based liquidation mechanism. When an account’s margin ratio drops to 50% or below, the system will initiate forced liquidation.

05 Expansion of Trading Tools

In addition to traditional financial assets, Gate is continuously innovating in cryptocurrency trading tools.

On January 13, Gate officially launched ETF leveraged tokens “Binance Life 3L” and “Binance Life 3S,” supporting 3x long and short positions.

At the same time, Gate launched a new coin trading challenge event, where users participating in designated trades can share a prize pool of 30,000 USDT.

Currently, Gate ETF supports trading of 256 tokens, providing users with a wide range of trading options.

Recently, Gate also launched a TradFi promotion campaign. Eligible users can receive up to 110 USDT in trial rewards upon registration, and unlock up to 3,000 USDT in additional phased incentives after completing qualifying trades.

06 Strategic Responses

In an environment where regulatory prospects are uncertain but market sentiment is warming, investors should adopt cautious and flexible strategies.

It is recommended to diversify your portfolio between cryptocurrencies and traditional financial assets, utilizing Gate’s TradFi features to achieve this.

Use hedging strategies, such as long and short tools on Gate, including the newly launched ETF leveraged tokens, to manage market volatility risks.

Closely monitor regulatory developments, especially the revision hearing of the Senate Agriculture Committee on January 27 and the final arrangements for the Senate Banking Committee hearing.

Leverage Gate’s educational resources and beginner rewards, such as the trial rewards in the TradFi promotion, to enhance understanding and practice of multi-asset trading.

Set strict risk management parameters, especially when using leveraged products, and understand the liquidation mechanisms of different products, such as Gate TradFi’s 50% margin ratio liquidation threshold.

Market Outlook

As the boundaries between crypto markets and traditional financial markets continue to blur, the demand for multi-asset and cross-market trading is expected to further grow.

The launch of Gate TradFi marks a significant step in the platform’s exploration of integrated trading infrastructure and provides new practical references for integrating different asset classes within a compliant framework.

For the long-term development of the cryptocurrency market, a clear regulatory framework is crucial. The outcomes of the hearings will directly influence the direction and intensity of U.S. crypto regulation, with far-reaching impacts on global markets.

Although the hearings may be delayed, legislative progress continues. Market participants should enjoy the current upward trend while paying attention to regulatory developments.

The resilience shown by the crypto market amid uncertainty, along with the diverse trading tools offered by platforms like Gate, provides investors with more options and possibilities to navigate complex market environments.