Regulatory uncertainty to cap U.S. crypto valuations
The delay in passing cryptocurrency market structure legislation in the U.S. is likely to cap the valuation growth of crypto assets in the short term, according to analysts at investment firm Benchmark.
While the lack of clear regulation won't derail the further development of the crypto industry in the U.S., it will create additional uncertainty, which will primarily benefit Bitcoin and its related infrastructure, they say.
The bill on the structure of the cryptocurrency market, which was supposed to clarify the legal status of various digital assets and establish unified rules for their circulation, has been postponed to a later date. This is due to the fact that lawmakers have focused on other priority issues of cryptocurrency market regulation.
Benchmark analysts note that the absence of clear legislation in this area will constrain the inflow of new investments into altcoins and other cryptocurrencies, while Bitcoin, as the most mature and regulated asset, may benefit from this situation.
Conclusion: The delay in passing cryptocurrency market structure legislation in the U.S. is likely to restrict the growth of cryptocurrency asset valuations in the near future. This is due to the persistent legal uncertainty, which will favor more mature and regulated instruments such as Bitcoin. To stimulate further industry development, crypto companies and regulators need to agree on clear rules of the game as soon as possible.