CLARITY Act Poised to Drive Institutional Embrace of Crypto, Benchmark Reports

CLARITY Act Seen as Catalyst for Institutional Crypto Adoption, Says Benchmark

The long-anticipated CLARITY Act could transform the digital asset landscape and trigger a wave of institutional adoption, according to a new report from Benchmark analyst Mark Palmer.

The proposed legislation seeks to define a clear regulatory framework for digital assets in the U.S., determining whether specific cryptocurrencies should be classified as commodities or securities.

In a note released Monday, Palmer highlighted that regulatory uncertainty has kept many traditional financial institutions—including banks, asset managers, and hedge funds—on the sidelines, hesitant to expand into crypto markets due to legal and compliance risks.

Although the current Securities and Exchange Commission (SEC), under Chairman Paul Atkins, has adopted a generally supportive posture toward crypto, Palmer cautioned that without statutory clarity, a future administration could potentially reverse pro-crypto regulatory stances, adding to the sector’s uncertainty.

This regulatory ambiguity has made long-term planning challenging for institutional players considering crypto ventures, the report noted. Passage of the CLARITY Act could change that by delivering the stability and predictability the industry has long sought.

Benchmark said that Galaxy Digital and Coinbase, both carrying Buy ratings, are “exceptionally well positioned” to benefit from any surge in institutional involvement that might follow the act’s approval.