The "Clarity Act" may become a turning point for institutional entry; Goldman Sachs explains how regulatory improvements can unlock crypto capital

The gradual improvement of the regulatory framework is becoming a key driving force behind the influx of institutional capital into the crypto market. Goldman Sachs analyst James Yaro and others pointed out in their latest report that this trend will directly benefit buy-side and sell-side financial institutions, while also opening up new application scenarios for tokenized assets and DeFi beyond trading.

Currently, the U.S. Congress’s proposed Clarity Act is seen as an important catalyst for this shift. The core value of the bill lies in establishing a clear regulatory framework for tokenized assets and decentralized finance, and clearly delineating the regulatory powers of the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission). With such clear delineation, institutional capital can enter with confidence, and genuine compliant participation can be achieved.

Goldman Sachs also emphasized the urgency of the time window. To proceed smoothly, the bill must be passed before the first half of 2026; otherwise, the U.S. midterm elections in November could delay the entire legislative process. The latest news indicates that Republican Senate Banking Committee Chairman Tim Scott has stated that the relevant committee will soon revise the Clarity Act and move it to a voting stage.

Market observers generally agree that while there may be a short-term correction by the end of 2025, once the bill is enacted, it will directly accelerate large-scale institutional entry, representing a qualitative leap in the maturity of the entire crypto market.