Benchmark: Delay in Crypto Market Structure Bill Could Lead to Structural Constraints on the US Crypto Market

Odaily News Wall Street brokerage Benchmark stated that if Congress fails to pass a market structure bill this year, the US cryptocurrency market will face structural constraints. Analyst Mark Palmer noted in a report that the absence of legislation will lead to a persistent structural risk premium, thereby limiting the valuation expansion of platforms subject to US influence. This situation will delay the maturation process of cryptocurrencies, making investors favor Bitcoin-centric investments, strong balance sheets, and cash flow-generating infrastructure over regulation-sensitive areas such as exchanges, decentralized finance (DeFi), and altcoins. Among these, DeFi and smart contract platforms are most vulnerable, while Bitcoin, miners, and energy-backed infrastructure face lower risks. The bill aims to define market structure by clarifying how digital assets are classified as commodities or securities and delineating the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Despite the delay, Palmer still believes the likelihood of the bill passing is greater than not, and any version of the legislation will reduce regulatory risks and unlock broader institutional participation. (CoinDesk)