News: TD Cowen, an investment bank, issues a report warning that clearer cryptocurrency legislation could lead to the entire crypto industry “derailing”, with legislation that shifts from a broader focus to specific company interests potentially “disrupting” the industry, similar to what the US marijuana industry has experienced in the past.
The report states that industries typically come together to push legislative agendas and receive coordinated lobbying support. However, when Congress begins to focus on a specific industry, companies start to focus on legislation that benefits them. This forces lawmakers to choose sides within the industry, weakening overall industry progress.
Analysts believe, “In our view, the evolution from legislation that seems impossible to pass to legislation that seems likely to pass is the biggest Washington challenge the crypto industry is currently facing. Companies may believe the stablecoin bill is unnecessary, or may bring too many benefits to competitors, which could derail the stablecoin bill this year and weaken the momentum of market structure legislation in 2025.”
Tags: TD Cowen, cryptocurrency, Congress, regulation, legislation.
