This week could mark a turning point for digital assets in the United States as Senate committees prepare to advance long delayed market structure legislation, according to Wall Street broker Benchmark. In a research note, the firm said the shift from prolonged political debate to concrete legislative action has the potential to end years of regulatory uncertainty that have weighed on crypto markets and investment decisions. Clear rules defining how digital assets are regulated would reduce the risk of sudden enforcement reversals and provide a more stable foundation for capital allocation. Benchmark argued that codifying oversight responsibilities through legislation would offer protection against future policy swings, particularly if Washington’s current pro crypto posture were to change. For institutional investors that have remained cautious due to classification and compliance risks, the firm said the coming Senate action could represent the first credible step toward durable regulatory clarity.
At the heart of the legislation is an effort to clearly separate the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, resolving years of jurisdictional conflict that left crypto firms uncertain about which rules applied to their businesses. Benchmark said that well defined asset classification standards would materially reduce the risk that tokens or platforms could later be deemed non compliant after the fact. That uncertainty has been a major barrier to institutional participation, particularly for asset managers, banks, and market makers that require predictable regulatory treatment before committing capital. The broker noted that under prior enforcement heavy approaches, innovation slowed and liquidity fragmented as firms feared retroactive action. Legislative clarity, by contrast, would allow regulated intermediaries to reengage, improving market depth and supporting more stable price discovery across the digital asset ecosystem.
Benchmark highlighted companies such as Coinbase and Galaxy Digital as potential beneficiaries of a clearer framework, citing their institutional focus and compliance oriented platforms. The firm argued that regulatory certainty is a prerequisite for unlocking the scale of liquidity that only large institutions can provide, which in turn underpins sustainable valuations in both crypto tokens and crypto linked equities. Improved liquidity, Benchmark added, would not eliminate volatility but would help normalize market behavior after years of fragmentation and episodic stress. The analysis also pointed to signs of healthier market conditions following disruptions late last year, suggesting that regulatory progress and liquidity improvements can reinforce each other. With Senate action now imminent, Benchmark said the coming days could represent a rare convergence of political momentum and market readiness, making this a pivotal moment for the future trajectory of digital assets in the US.
