Benchmark: CLARITY Act Has Potential to Transform How Institutions Approach Crypto

CLARITY Act Could Transform Institutional Crypto Landscape, Says Benchmark

The much-anticipated CLARITY Act could be a game changer for the digital asset industry, potentially driving a surge in institutional investment, according to a new report from Benchmark analyst Mark Palmer.

The proposed legislation is designed to establish a clear regulatory framework for digital assets in the United States, helping to classify cryptocurrencies as either commodities or securities.

In a note released on Monday, Palmer explained that this clarity is crucial for traditional financial institutions—including asset managers, banks, and hedge funds—that have largely stayed out of crypto due to concerns over regulatory and compliance risks.

While the current SEC, under Chairman Paul Atkins, maintains a generally pro-crypto stance, Palmer warned that without formal legislation, a future administration less favorable toward digital assets could reverse supportive policies, creating further uncertainty.

This regulatory ambiguity has made it challenging for institutional players to develop long-term strategies in the crypto space, the report noted. The CLARITY Act, if passed, could resolve much of that uncertainty, paving the way for broader industry participation.

According to Benchmark, firms like Galaxy Digital and Coinbase—both rated “Buy”—are “exceptionally well positioned” to benefit from an expected wave of institutional adoption if the legislation becomes law.