Transparency Act Delay Could Spark Short-Term Crypto Market Pressure

The Transparency Act, a key regulatory event for the US crypto industry, is facing delays in its passage. According to Bernstein, if the law does not pass by 2026, it could lead to increased pressure on Bitcoin and the broader cryptocurrency market in the short term.

Bernstein expects regulators to continue moving independently and forming rules for the industry more quickly, even without the passage of the Transparency Act. This includes areas such as token classification, guidelines for DeFi, rules for self-custody of assets, exemptions for innovative token issuances, approaches to tokenization, crypto derivatives, and prediction markets.

The broker notes that the chances of the bill passing have noticeably worsened, with the US Senate facing a tight deadline before recess. However, Bernstein does not consider the delay as a long-term trend reversal and believes that regulators will continue to support the industry even without new laws.