Regulatory improvements will be critical to unlocking broader institutional adoption of crypto assets, according to analysts at Goldman Sachs, who pointed to U.S. market structure legislation as a central catalyst.
In a report cited by Odaily, a Goldman Sachs research team led by James Yaro said clearer regulation would benefit both buy-side and sell-side financial institutions, while also enabling new use cases for crypto assets beyond speculative trading.
Clarity Act seen as pivotal catalyst
The analysts highlighted the U.S. Digital Asset Market Clarity Act, commonly referred to as the Clarity Act, which is currently advancing through Congress.
According to the report, the legislation is expected to:
Establish a clear regulatory framework for tokenized assets and decentralized finance (DeFi)
Define the respective jurisdictions of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission
Reduce regulatory ambiguity that has constrained institutional participation
Such clarity, Goldman Sachs said, is essential for unlocking institutional capital and allowing compliant engagement by banks, asset managers, and market infrastructure providers.
Timing risks tied to U.S. midterm elections
Goldman Sachs cautioned that timing is critical, noting that the Clarity Act would ideally need to be passed by the first half of 2026.
Failure to do so could introduce delays linked to the U.S. midterm elections in November, which may complicate legislative momentum and increase political uncertainty around crypto regulation.
Senate Banking Committee signals progress
Earlier, Tim Scott, the Republican chairman of the Senate Banking Committee, said the committee plans to revise the Clarity Act and move it toward a formal vote in the near term.
That signal has been viewed by market participants as an important step toward advancing comprehensive crypto market structure legislation.
Short-term headwinds, long-term acceleration
Industry experts cited in the report noted that market adjustments toward the end of 2025 may temper short-term adoption, as institutions remain cautious amid volatility and policy uncertainty.
However, they argued that successful passage and implementation of the Clarity Act could significantly accelerate genuine institutional entry, shifting crypto adoption from tactical exposure toward deeper integration across payments, settlement, and financial infrastructure.
