Goldman Sachs Sees Regulatory Shift Fuelling Next Phase of Crypto Adoption

Real momentum towards crypto regulation is creating a positive outlook for crypto markets in 2026 — particularly blockchain infrastructure companies — according to global investment bank and financial services firm Goldman Sachs. 

“We see the improving regulatory backdrop as a key driver to continued institutional crypto adoption, especially for buyside and sellside financial firms, as well new use cases for crypto developing beyond trading,” analysts led by James Yaro wrote, as reported by CoinDesk.

In a report issued by the bank on Monday, January 5, Goldman Sachs highlighted how areas like tokenisation, DeFi and stablecoins were set to expand with the implementation of legislation that were critical for unlocking institutional capital. 

The report added that TradFi adoption of crypto has already been bolstered by changes made since President Donald Trump’s pro-crypto reign commenced. This includes changes in bank supervision, the rollback of the controversial SAB 121 custody accounting rule, and the approval of new digital-asset bank charters. 

Related: Fed, OCC, and FDIC Spell Out Crypto Custody Rules – No New Requirements, Just Safeguards

The bank’s own survey data shows that:

• 35% of institutions baulk at adopting crypto because of regulatory uncertainty.
• 32% of institutional asset managers see regulatory clarity as the top catalyst for adoption.
• 71% plan to increase their exposure to digital assets over the next 12 months.

Clarity Act Passage in H1 2026 Could Be Big

Goldman Sachs’ analysis points to a potentially significant impact if the CLARITY Act (Digital Asset Market Structure Legislation) is passed into law in the first half of this year. 

Industry experts give the bill a 50–60% chance of being passed before the U.S. 2026 midterm elections in November. If it is not passed by then, its future hinges on whether the Republican Party retains control of both chambers.

“Whether it happens at all will depend on how the midterms go, and with the odds being that a solution passing both houses will be harder to arrive at if Democrats control one of the chambers,” Bill Hughes, director of global regulatory matters at Consensys, told DL News.

The CLARITY Act is supposed to resolve confusion about which regulator is responsible for what — with Bitcoin and Ethereum being treated as commodities (handled by the Commodity Futures Trading Commission), and ‘investment contract’ assets that are more like securities covered by the SEC. It also established registration requirements for digital exchanges and a regulatory framework for tokenised assets and decentralised finance (DeFi).

Related: Franklin Templeton’s XRP ETF Breaks 100M Tokens, Marking a Major Institutional Milestone

The bill was passed by the US House of Representatives in mid-2025 but was delayed by the Senate. However, the process of reviewing the bill is expected to start again this month. 

Issues being debated surrounding the bill include how much DeFi should be regulated, the right split between the SEC and CFTC, the legality of ‘interest-like’ stablecoin rewards, and whether government officials (including Trump) should be able to profit from crypto while in office. 

The GENIUS Act, which provides oversight for stablecoins, was signed into law in July 2025. Other legislation still in the works includes the Crypto Tax Reforms (PARITY Act).

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