Benchmark: The Market Structure Act Delays or Restrictions the Development of the US Cryptocurrency Market

Wall Street brokerage Benchmark has stated that if Congress fails to pass the Market Structure Act this year, the US cryptocurrency market may face structural constraints. Analyst Mark Palmer pointed out that the lack of legislation will lead to the continued existence of structural risk premiums, limit the valuation expansion of platforms influenced by the United States, and delay the maturity process of cryptocurrencies. Investors may be more inclined towards Bitcoin related investments, strong balance sheets, and cash flow infrastructure, rather than regulatory sensitive areas such as exchanges, DeFi, and altcoins. DeFi and smart contract platforms are greatly affected, while the infrastructure risks supported by Bitcoin, miners, and energy are relatively low. The bill aims to clarify the classification of digital assets and the regulatory responsibilities of the SEC and CFTC. Palmer believes that the likelihood of the bill passing is high, and any version of legislation can help reduce regulatory risks and attract institutional participation.