Goldman Sachs: Regulatory progress will drive the next wave of institutional cryptocurrency adoption

BlockBeats News, January 6 — Wall Street giant Goldman Sachs stated that improvements in the regulatory environment and the emergence of applications for crypto assets outside of trading are building a positive outlook for the industry, especially for infrastructure companies that support ecosystems but are less affected by market cycles. The bank’s report released on Monday pointed out that regulatory uncertainty remains the main obstacle for institutional participation, but this landscape is changing rapidly. “We believe that improvements in the regulatory environment are a key driver for ongoing institutional adoption of crypto assets, particularly for buy-side and sell-side financial institutions. At the same time, new application scenarios for crypto assets outside of trading are also developing,” wrote the analyst team led by James Yaro. Yaro noted that upcoming legislation on U.S. market structure 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 complete overhaul. With Paul Atkins confirmed as chairman, the regulatory agency has retreated from years of aggressive enforcement against the crypto industry, dismissing nearly all pending cases and withdrawing from multiple court lawsuits. Trump has made the development of the U.S. crypto industry a core policy goal, and Atkins has also prioritized this within the SEC. A draft bill currently under review in Congress will clarify the regulatory framework for tokenized assets and decentralized finance projects, and 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 U.S. 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.