Crypto Market Structure Bill Faces Hurdles Amid WLFI Token Controversy

The Senate Banking Committee unveiled an updated draft of the crypto market structure reform bill on September 5, marking a pivotal step toward regulatory clarity. Analysts warn that the collapse of the TRUMP family-backed WLFI token project could derail bipartisan support, complicating passage prospects.

Committee Chairman Tim Scott's team spent months refining the legislation with industry feedback, targeting a Senate vote by November or December. Political headwinds emerged as World Liberty Financial's token plunged 46% within days of its September 1 launch, sparking scrutiny about project legitimacy.

Variant Fund's Jake Chervinsky cautioned that the WLFI fiasco jeopardizes critical Democratic votes needed for passage. The legislation requires seven Democratic supporters to advance, with the token debacle potentially hardening opposition amid election-year sensitivities.