U.S. Crypto Market Cap Limited by Delayed Regulations, Benchmark Analysis Warns

The delay in passing crucial U.S. cryptocurrency market structure legislation is likely to suppress valuations for digital assets, according to a new report from investment firm Benchmark. Analysts note that the political impasse and regulatory uncertainty are creating a significant headwind for the industry, preventing institutional capital from flowing freely into the market. This stalled progress on clear rules, such as the FIT21 Act, keeps major investors on the sidelines, capping the potential growth of crypto valuations like Bitcoin (BTC) and Ethereum (ETH) in the near term. The firm emphasizes that until comprehensive regulatory clarity is achieved, the U.S. crypto market may continue to underperform its global counterparts.