Goldman Sachs (GS) sees regulation driving next wave of institutional crypto adoption

Goldman Sachs analysts, led by James Yaro, project a constructive outlook for the digital asset industry, driven by improving regulatory clarity and the expansion of crypto use cases beyond simple trading. Regulatory uncertainty is cited as the primary barrier for institutions, and a shift is underway, partly due to a leadership change at the SEC under the Trump administration, which has led to a reduction in enforcement actions. Forthcoming U.S. market structure legislation is seen as a pivotal catalyst, potentially clarifying regulations for tokenized assets and DeFi, and defining roles for the SEC and CFTC. While 35% of institutions cite regulatory uncertainty as the biggest hurdle, 32% see clarity as the top catalyst. Institutional allocations remain modest (7% of AUM), but 71% plan to increase exposure. Adoption has already accelerated via ETFs, and growth areas beyond trading include tokenization, DeFi, and stablecoins, which benefit from recent legislation.

(Source：CoinDesk)