Goldman Sachs: Regulatory Progress Will Drive the Next Wave of Institutional Cryptocurrency Adoption

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Goldman Sachs believes that an improved regulatory environment and new application scenarios for crypto assets are bringing positive prospects to the industry. However, regulatory uncertainty remains the main obstacle for institutional participation. Upcoming market structure legislation could be a key catalyst, helping to unlock institutional capital.

According to a report released on Monday, Wall Street giant Goldman Sachs stated that the improvement in the regulatory environment and the emergence of application scenarios for crypto assets outside of trading are building a positive outlook for the industry, especially for infrastructure companies that support the ecosystem but are less affected by market cycles. The report, led by analyst James Yaro, pointed out that regulatory uncertainty is still the main barrier for institutions to participate, but this situation is changing rapidly.

"We believe that the improvement of the regulatory environment is a key driver for ongoing institutional adoption of crypto assets, especially for buy-side and sell-side financial institutions. At the same time, new application scenarios for crypto assets outside of trading are also developing," the analyst team wrote.

Yaro noted that upcoming US market structure legislation could serve as a critical catalyst. Since President Donald Trump took office, the leadership of the U.S. Securities and Exchange Commission (SEC) has undergone a comprehensive overhaul. With Paul Atkins confirmed as chairman, the regulator has retreated from aggressive enforcement actions against the crypto industry over the years, rescinding nearly all pending cases and withdrawing from multiple court lawsuits.

Trump aimed to promote the development of the US crypto industry as a core policy goal, and Atkins has also prioritized this in the SEC. A draft bill currently under review in Congress will clarify the regulatory framework for tokenized assets and decentralized finance projects, as well as define the responsibilities of the SEC and the Commodity Futures Trading Commission.

Goldman Sachs believes these steps are crucial for unlocking institutional capital. The report states that passing legislation in the first half of 2026 will be especially important, as the US midterm elections later that year could delay progress.

The bank cited survey data indicating that 35% of institutions see regulatory uncertainty as the biggest obstacle to adopting crypto assets, while 32% believe regulatory clarity is the most important catalyst.