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

On January 6th, Goldman Sachs, a top Wall Street investment bank, stated that the continued improvement in the regulatory environment and the expanding applications of crypto assets beyond trading are building a positive outlook for the entire industry.

The bank specifically pointed out that infrastructure companies supporting the ecosystem and relatively less affected by market cycles will see significant opportunities.

In a report released Monday, Goldman Sachs emphasized that regulatory uncertainty has long been a major obstacle to institutional participation in the crypto market, but this situation is rapidly changing.

The analysis team, led by James Yaro, wrote in the report: "We believe that the improving regulatory environment is a key driver for the continued adoption of crypto assets by institutions, especially for both buy-side and sell-side financial institutions. At the same time, new applications of crypto assets beyond trading are gradually emerging."

Yaro pointed out that upcoming US market structure legislation could be a key catalyst for industry development. Since President Donald Trump took office, the leadership of the US Securities and Exchange Commission (SEC) has undergone a complete overhaul.

With Paul Atkins confirmed as SEC Chairman, the regulator has shifted from its aggressive enforcement stance towards the crypto industry in recent years, not only dropping almost all pending cases but also withdrawing from numerous court lawsuits.

The Trump administration has made promoting the development of the US crypto industry a core policy objective, and Atkins has also made it one of the SEC's top priorities.

The related draft legislation currently under consideration in Congress is expected to clarify the regulatory framework for tokenized assets and decentralized finance projects, and clearly define the responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC).

Goldman Sachs believes that these regulatory developments are crucial for unlocking institutional funds. The report further points out that if the relevant legislation is passed in the first half of 2026, it will be of particular significance—as the US midterm elections in the second half of that year may delay the legislative process.

The bank cites its research data showing that 35% of institutions consider regulatory uncertainty the biggest obstacle to adopting crypto assets, while 32% believe that regulatory clarity is the most important driving factor. (Source: BLOCKBEATS)