Market structure bill delay seen capping U.S. crypto valuations, Benchmark says
Benchmark suggests a delay in U.S. crypto market structure legislation will persist regulatory ambiguity, capping valuations for U.S.-exposed platforms.Summary
According to a report by Wall Street broker Benchmark, the failure of Congress to pass crypto market structure legislation this year will not cause a return to the enforcement-heavy environment of 2022-2023, but it will maintain structural constraints that limit the U.S. crypto market's potential.
Analyst Mark Palmer stated that the absence of legislation will cause a "structural risk premium" to persist, capping valuation expansion for U.S.-exposed platforms. This delay favors assets like bitcoin, which is seen as comparatively insulated due to its commodity status, and cash-flowing infrastructure, while negatively impacting regulatory-sensitive segments such as exchanges, DeFi, and altcoins.
The proposed bill aims to define market structure by clarifying asset classification (security vs. commodity) and SEC/CFTC oversight. While House passage occurred last year, Senate negotiations are slow, risking a delay until next year. Despite this, Palmer views eventual passage, even if diluted, as more likely than not, arguing it would reduce regulatory risk and unlock broader institutional participation.
(Source：CoinDesk)