US Senate to Hold Cryptocurrency Hearing in July… Will It Be a Watershed for Bitcoin Regulation?

On July 9th (local time), a hearing hosted by the U.S. Senate Banking Committee will be held, which is drawing attention as a critical turning point that could determine the future of the cryptocurrency market. This hearing, focusing on the cryptocurrency market structure, is expected to comprehensively review everything from digital asset trading systems to settlement methods and regulatory jurisdiction, attracting market attention. The Senate plans to officially discuss for the first time the regulations that cryptocurrency exchanges in the U.S. must follow, the transparency of order processing, and the settlement methods of digital asset derivatives. In particular, there is a possibility of presenting a solution to the ongoing "jurisdictional dispute" between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Senators Tim Scott, Cynthia Lummis, Bill Hagerty, and Tom Tillis have already proposed bipartisan principles related to this. The market is closely watching the potential impact of this discussion on major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). Especially if the regulatory proposal includes a "clear jurisdiction" and "exclusion of excessive regulatory burden", it could be interpreted as a signal of entering the institutional market and potentially trigger a Bitcoin price increase. Conversely, if high registration fees or strong licensing requirements are included, major investors might shift to a conservative position, and a price decline cannot be ruled out. Bitcoin has been hovering between $105,000 and $110,000 over the past month. To create a market rebound, this hearing needs to generate a positive outlook. If market structure reform brings cryptocurrency trading into the institutional realm, institutional investor participation could follow. Beyond typical news or settlement issues, this could be the first case where regulatory environment changes directly induce price fluctuations, making July 9th likely to be a *critical inflection point* for the cryptocurrency industry. Industry experts emphasize that depending on the hearing results, there could be short-term sharp price movements, and they are advising investors to *prepare for high volatility*.