Goldman Sachs sees regulatory clarity and emerging crypto use cases as key drivers for broader institutional adoption.
In a report released Monday, the bank said that improving regulations and the growth of infrastructure-focused projects are creating a more constructive outlook for the industry, particularly for firms that support crypto without being heavily exposed to market volatility.
“Regulatory progress is a major driver of continued institutional adoption, especially for buy-side and sell-side firms, alongside new crypto use cases beyond trading,” analysts led by James Yaro wrote. Forthcoming U.S. market structure legislation could provide a pivotal catalyst, the report added.
Goldman highlighted that the SEC’s leadership shift under President Donald Trump, culminating in Paul Atkins’ confirmation as chair, prompted the regulator to scale back enforcement and drop pending cases. Draft bills circulating in Congress aim to clarify rules for tokenized assets and DeFi projects and define the roles of the SEC and CFTC. Passage in the first half of 2026 would be particularly meaningful ahead of midterm elections.
Survey data cited by Goldman shows 35% of institutions view regulatory uncertainty as the main adoption barrier, while 32% see clarity as the key catalyst. Institutional allocations remain modest, with asset managers investing roughly 7% of AUM in crypto, though 71% plan to increase exposure over the next year.
ETF adoption has accelerated, with bitcoin ETFs reaching $115 billion and ether ETFs surpassing $20 billion by year-end 2025. Hedge fund participation has grown, while tokenization, DeFi, and stablecoins — supported by recent legislation — are poised for further expansion. Regulatory changes and new digital-asset bank charters have also lowered barriers for institutional engagement.
Grayscale echoed Goldman’s outlook, noting that bipartisan crypto market structure legislation expected in 2026 could mark a milestone for the industry.
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