Wall Street trader Bernstein said the United States has taken a decisive step toward becoming the crypto capital of the world with the launch of a comprehensive regulatory framework.
The GENIUS Act, now law, accelerated the stablecoin market, driving US dollar-backed supply beyond $260 billion, the brokerage said in a Wednesday report. The upcoming CLARITY Act, expected by the end of 2025, will establish the first cohesive market structure for digital assets, clearly dividing responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and resolving years of regulatory uncertainty, he said.
According to analysts led by Gautam Chhugani, the centerpiece of this transformation is SEC Chairman Atkins’ Project Crypto, the most ambitious effort yet to merge securities markets with blockchain technology.
The initiative aims to restore innovation by classifying most crypto assets outside securities law, allowing tokenized stocks and bonds and licensed stockbrokers to handle traditional and digital assets under a single regulatory umbrella.
It also seeks to modernize infrastructure for on-chain trading and 24/7 settlement, reducing costs on tokenized securities, stablecoins and crypto assets, analysts said. This clarity has reduced the sector’s risk due to political change and unlocked new institutional participation.
Cryptocurrency exchange-traded funds (ETFs) now hold $160 billion in assets, the report noted, with institutions representing about a quarter of cash investors in ETFs.
Bernstein said the digital asset IPO market has returned to growth this year, raising $4 billion since January, while the market value of publicly traded cryptocurrency companies has risen from $80 billion in early 2024 to $380 billion, with Coinbase (COIN) and Robinhood (HOOD) now part of the S&P 500 stock index.
A new, more sustainable crypto cycle is taking shape, driven by clear rules, institutional capital and deeper integration of blockchain into the financial system, the report adds.
Read more: Diversification, Not Hype, Now Driving Digital Asset Investment: Sygnum
