Bernstein Warns of Crypto Market Decline if Transparency Act Fails

The Transparency Act is crucial for the US crypto industry's future, and its delay has led Bernstein to warn of another decline in the market. If the law doesn't pass by 2026, digital assets could face increased pressure, although American regulators will try to close gaps with rules more quickly.

According to analysts led by Gautam Chhugani, the chances of the bill being passed have significantly worsened due to time constraints in the U.S. Senate. Clarity is key to tokenization, DeFi development, and a more active entry of banks, asset managers, and exchanges into digital assets.

Bernstein expects regulators to accelerate work on several areas without new legislation: token classification, recommendations for DeFi, rules for self-custody of assets, exceptions for innovative token issuances, approaches to tokenization, crypto derivatives, and prediction markets.