Regulatory Clarity Expected to Drive Institutional Crypto Uptake, Says Goldman Sachs

Goldman Sachs sees regulatory clarity and expanding use cases beyond trading as key catalysts for broader institutional adoption of crypto.

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, particularly for firms that support the ecosystem without being heavily exposed to market volatility.

“Regulatory progress is a central driver for continued institutional crypto adoption, especially among buy-side and sell-side financial firms, alongside emerging use cases beyond trading,” analysts led by James Yaro wrote. The report singled out forthcoming U.S. market structure legislation as a potential tipping point.

Goldman noted that a leadership overhaul at the SEC under President Donald Trump, culminating in Paul Atkins’ confirmation as chair, led the regulator to step back from aggressive enforcement and drop pending cases. Draft bills in Congress aim to clarify how tokenized assets and DeFi projects are regulated, as well as define the roles of the SEC and CFTC. Passage in the first half of 2026 would be particularly important ahead of midterm elections.

Survey data cited by Goldman shows that 35% of institutions view regulatory uncertainty as the main adoption barrier, while 32% see regulatory clarity as the top 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 growing to $115 billion and ether ETFs surpassing $20 billion by year-end 2025. Hedge fund participation has also increased, while tokenization, DeFi, and stablecoins — supported by recent legislation — are poised for expansion. Changes in bank supervision and the approval of new digital-asset bank charters have further lowered barriers for institutional engagement.

Grayscale echoed Goldman’s outlook, noting that bipartisan crypto market structure legislation expected in 2026 could become a milestone for the industry.