Benchmark: CLARITY Act Could Unlock Major Institutional Crypto Adoption
The long-awaited CLARITY Act has the potential to reshape the digital asset landscape by providing much-needed regulatory certainty, paving the way for broader institutional involvement, according to a new report from Benchmark analyst Mark Palmer.
The proposed legislation aims to clarify how cryptocurrencies are classified under U.S. law—either as commodities or securities—bringing a structured legal framework to a space often hindered by ambiguity.
Palmer noted in his Monday report that the absence of regulatory clarity has discouraged major financial institutions—such as hedge funds, asset managers, and banks—from entering the digital asset market due to compliance risks and legal uncertainties.
While the Securities and Exchange Commission (SEC), under Chairman Paul Atkins, currently supports a constructive approach toward crypto, Palmer warned that this could be reversed by a future administration unless a formal legal framework like CLARITY is established.
The ongoing lack of regulatory stability has made it difficult for institutional players to plan long-term strategies around crypto offerings. Should the act pass, it would likely eliminate much of this uncertainty and provide a solid foundation for increased institutional participation.
Benchmark emphasized that Galaxy Digital and Coinbase, both rated as “Buy,” are particularly well-positioned to benefit from the institutional momentum that would likely follow the act’s implementation.
