Wall Street giant Goldman Sachs (GS) said improved regulation and the emergence of cryptocurrency use cases beyond trading are underpinning a constructive outlook for the industry, particularly for infrastructure companies that support the ecosystem without being as exposed to market cycles.
Regulatory uncertainty remains the main barrier for institutions, and that context is changing rapidly, the bank said in a report on Monday.
“We view the improved regulatory environment as a key driver for continued institutional adoption of cryptocurrencies, especially for buying and selling financial firms, as well as new use cases for the development of cryptocurrencies beyond commerce,” wrote analysts led by James Yaro.
According to Yaro, upcoming US legislation on market structure could be a key catalyst.
After President Donald Trump took office, a leadership review at the Securities and Exchange Commission (SEC) that culminated in the confirmation of Paul Atkins as chairman, led the regulator to backtrack after years of aggressive enforcement against the crypto industry. The SEC dropped nearly all of its pending cases and withdrew from several active court fights.
Trump made promoting the U.S. crypto industry a central policy goal, a stance Atkins echoed by making it a top priority for the SEC, an independent regulator traditionally insulated from direct White House control.
Bills now circulating in Congress would clarify how tokenized assets and decentralized finance (DeFi) projects are regulated, and define the roles of the SEC and the Commodity Futures Trading Commission (CFTC), measures that Goldman says are essential to unlocking institutional capital.
Approval in the first half of 2026 would be especially significant, given the risk that the US midterm elections later that year could delay progress, the report said.
The bank pointed to its own survey data showing that 35% of institutions cite regulatory uncertainty as the biggest obstacle to adoption, while 32% see regulatory clarity as the main catalyst.
Despite growing interest, allocations remain modest: Institutional asset managers have invested around 7% of assets under management in cryptocurrencies, although 71% say they plan to increase exposure over the next 12 months, leaving substantial room for growth.
The bank said adoption has already accelerated through familiar vehicles such as exchange-traded funds (ETFs). Since its approval in 2024, bitcoin ETFs have grown to reach approximately $115 billion in assets by the end of 2025, while ether ETFs have surpassed $20 billion. Hedge fund participation has also increased, with most now owning cryptocurrencies and planning further allocation increases.
Beyond trading, analysts highlighted tokenization, DeFi and stablecoins as areas primed for expansion. Stablecoin legislation passed last year clarified oversight and reserve requirements, helping the market grow to nearly $300 billion in capitalization.
Meanwhile, changes to banking supervision, the rollback of restrictive custodial accounting rules, and the passage of new digital asset banking charters have collectively lowered barriers for traditional financial institutions to engage with cryptocurrencies, the report added.
US market structure legislation is poised to be the dominant force for digital assets, crypto asset manager Grayscale said in a report last month. Analysts at the firm said they expect a bipartisan bill on crypto market structure to become law in 2026, marking a milestone for the asset class.
Read more: Grayscale Sees Regulation, Not Quantum Fears, Shaping Crypto Markets in 2026
