Goldman Sachs Highlights Regulatory Improvements as Key to Crypto Adoption

According to BlockBeats, Goldman Sachs has expressed optimism about the future of the crypto industry, citing improved regulatory conditions and emerging applications beyond trading as positive factors. The financial giant emphasized the importance of these developments for infrastructure companies that support the ecosystem but are less affected by market cycles. In a report released on Monday, Goldman Sachs noted that regulatory uncertainty remains a significant barrier to institutional participation, though this landscape is rapidly evolving. The analyst team, led by James Yaro, stated, "We believe that improved regulatory conditions are a key driver for the continued adoption of crypto assets by institutions, particularly for buy-side and sell-side financial entities. Additionally, new applications for crypto assets beyond trading are developing." Yaro highlighted that upcoming U.S. market structure legislation could serve as a crucial catalyst. Since U.S. President Donald Trump took office, the leadership of the Securities and Exchange Commission (SEC) has undergone a complete overhaul, with Paul Atkins confirmed as chairman. Under Atkins, the SEC has retreated from aggressive enforcement in the crypto industry, withdrawing nearly all pending cases and exiting multiple court litigations. Trump has made the development of the U.S. crypto industry a core policy goal, and Atkins has prioritized it within the SEC. The draft legislation currently under congressional review aims to clarify the regulatory framework for tokenized assets and decentralized finance projects, while defining the roles of the SEC and the Commodity Futures Trading Commission. Goldman Sachs believes these measures are crucial for unlocking institutional capital. The report suggests that passing legislation by the first half of 2026 is particularly important, as the U.S. midterm elections later that year could delay progress. The bank's survey data indicates that 35% of institutions view regulatory uncertainty as the biggest obstacle to adopting crypto assets, while 32% consider regulatory clarity the most important catalyst.