Goldman Sachs sees regulatory clarity and expanding crypto use cases beyond trading as key drivers for deeper institutional adoption of digital assets.
In a report released Monday, the Wall Street bank said improving regulations and the growth of infrastructure-focused projects are creating a more constructive outlook for the industry, particularly for companies that support the ecosystem without being heavily exposed to market cycles.
“Regulatory progress is a central driver for continued institutional crypto adoption, especially among buy-side and sell-side financial firms, alongside new use cases for crypto beyond trading,” analysts led by James Yaro wrote. The report highlighted forthcoming U.S. market structure legislation as a potential catalyst for adoption.
Goldman noted that a leadership shift at the SEC under President Donald Trump — culminating in the confirmation of Paul Atkins as chair — led the regulator to scale back aggressive enforcement, drop pending cases, and step back from active court fights. Draft bills circulating in Congress aim to clarify the regulation of tokenized assets and DeFi projects and define the roles of the SEC and CFTC. Passage in the first half of 2026 would be particularly significant ahead of midterm elections.
Survey data cited by Goldman shows 35% of institutions view regulatory uncertainty as the main hurdle to adoption, while 32% see clarity as the top catalyst. Institutional exposure remains modest, with asset managers investing roughly 7% of AUM in crypto, though 71% plan to increase holdings over the next year.
Adoption has already accelerated via familiar channels such as ETFs. Since approval in 2024, bitcoin ETFs have grown to about $115 billion in assets by the end of 2025, while ether ETFs surpassed $20 billion. Hedge fund participation has also increased, with most now holding crypto and planning further allocations.
Beyond trading, tokenization, DeFi, and stablecoins are poised for growth. Stablecoin legislation passed last year clarified oversight and reserve requirements, supporting a market capitalization of nearly $300 billion. Additionally, changes in bank supervision, the rollback of restrictive custody accounting rules, and approval of new digital-asset bank charters have lowered barriers for traditional financial institutions.
Grayscale echoed Goldman’s view, noting that U.S. market structure legislation could become the dominant force for digital assets, with a bipartisan bill expected to pass in 2026, marking a milestone for the industry.
