Coinbase Global Inc. (NASDAQ:COIN) is pulling back its support for a major U.S. crypto market structure bill, but HSBC Holdings (NYSE:HSBC) analysts say the legislation isn’t dead yet.

No Bill Or Compromise Bill?

HSBC says a "reasonable compromise" is still on the table despite CEO Brian Armstrong's “no bill is better than a bad bill” stance.

The bank argues that legislative clarity is the only way to unlock massive institutional adoption from hedge funds and corporations, CoinDesk reported on Thursday.

The bill aims to end the SEC's aggressive tactics by clearly defining where the SEC ends and the Commodity Futures Trading Commission’s (CFTC) begins.

Analysts expect incremental wins through the Agriculture Committee's bill, which expands CFTC oversight.

Strong Momentum For Action

Strong momentum remains backed by the Fairshake PAC and leadership from Ripple, with insiders fearing future administrations could be less crypto-friendly.

Bitwise CIO Matt Hougan warns that the current pro-crypto environment is a "political window" that won’t stay open forever.

Without codified market structure, the industry remains vulnerable to shifts in the D.C. winds.

The market is watching to see if Armstrong is posturing for better terms or if the industry’s biggest player is truly walking away from the current draft.

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