Summary
- It said that if the U.S. crypto market structure bill is delayed, regulatory uncertainty could limit further gains in the U.S. crypto market.
- It said that in the absence of a market structure bill, exchanges, DeFi, and altcoins are expected to underperform relatively due to compliance costs and listing uncertainty.
- It added that Bitcoin and mining and energy-based infrastructure would be less affected by regulation, and that passage of the bill could be a catalyst for expanded institutional participation.
If the U.S. Congress delays action on a crypto (digital-asset) market structure bill, regulatory uncertainty could persist and make further gains in the U.S. crypto market harder to sustain, according to an analysis.
According to crypto-focused media outlet CoinDesk on the 26th, Mark Palmer, an analyst at Wall Street brokerage Benchmark, said in a report that "if the market structure bill is not passed, a structural regulatory risk premium will persist across the broader digital-asset ecosystem," adding that "this could be a factor limiting valuations of U.S.-related crypto platforms."
Palmer assessed that while delays would not derail the industry’s growth, they could slow its maturation. He said, "Investors are likely to favor Bitcoin-centric assets with lower regulatory sensitivity and infrastructure segments with strong balance sheets and cash-flow generation," explaining that "exchanges, decentralized finance (DeFi), and altcoins could underperform relatively."
The bill aims to establish criteria for classifying digital assets as securities or commodities and to clarify the supervisory remit of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, with Senate deliberations stalled after passage in the House, some have raised the possibility that final action could slip into next year.
Palmer noted that "the market is already pricing in the possibility of delays," adding that "without the bill, exchanges would face listing uncertainty and higher compliance costs, and stablecoin monetization could also be delayed due to a lack of relevant rules."
He added that Bitcoin and companies pursuing Bitcoin-centric treasury strategies, as well as mining and energy-based infrastructure, are likely to be less affected by regulation. He cited decentralized platforms and smart-contract-based projects as the segments most vulnerable to regulatory uncertainty.
Still, Palmer said "the odds remain high that the market structure bill will pass, even in a somewhat watered-down form," adding that "whatever the form, having legislation in place would reduce regulatory risk and could serve as a catalyst for broader institutional participation."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
