Goldman Sachs has identified regulatory clarity as the single most important catalyst for the next phase of institutional adoption in the cryptocurrency market.
According to the bank, clearer rules, not price performance, will determine how quickly large financial institutions expand their exposure to digital assets.
Regulation Emerges as the Decisive Barrier
Goldman Sachs points to regulatory uncertainty as the dominant obstacle holding institutions back. Survey data cited by the firm shows that 35% of institutional respondents view unclear regulation as the biggest hurdle to crypto adoption, while 32% identify regulatory clarity as the most important factor that could accelerate participation.
This highlights a critical shift in how institutions approach crypto. Rather than debating technology or market potential, many firms are waiting for defined legal frameworks before committing significant capital or launching new products.
U.S. Legislation Could Unlock Participation
The bank places particular emphasis on upcoming U.S. market structure legislation. These proposals aim to clarify the respective roles of regulators such as the SEC and CFTC, especially in areas involving tokenized assets, decentralized finance, and broader digital asset markets.
Goldman Sachs sees this legislative clarity as a potential turning point. Clear jurisdictional boundaries and compliance standards would allow banks, asset managers, and financial intermediaries to engage more confidently without fear of retroactive enforcement or regulatory overlap.
Institutional Appetite Is Already Building
Despite regulatory uncertainty, institutional involvement is already growing. Goldman Sachs notes that asset managers currently allocate roughly 7% of their portfolios to crypto-related exposure. More importantly, 71% of institutions surveyed plan to increase that allocation over the next year.
This suggests that regulatory clarity would not create demand from scratch—but rather unlock capital that is already waiting on the sidelines.
Adoption Expands Beyond Spot Trading
Goldman Sachs also highlights that institutional crypto adoption is no longer limited to direct token trading. Growth is increasingly happening through structured products such as Bitcoin and Ether ETFs, which provide regulated access without direct custody or operational complexity.
Beyond ETFs, the bank sees expanding opportunities in tokenization, decentralized finance, and stablecoins, particularly as recent legislative developments improve legal certainty around these use cases.
Infrastructure Providers in Focus
Rather than emphasizing short-term price movements, Goldman Sachs expresses a positive outlook on companies building core crypto infrastructure. These firms—operating in custody, settlement, compliance, and tokenization—are viewed as offering more stable, long-term growth compared to the volatility of digital asset prices themselves.
The bank suggests that as regulation matures, infrastructure providers could become the primary beneficiaries of institutional onboarding.
Bottom Line
Goldman Sachs’ assessment underscores a clear message: the next major wave of institutional crypto adoption will be driven by rules, not rallies. With institutions already planning to expand exposure, regulatory clarity—especially in the U.S.—could act as the switch that turns cautious interest into large-scale participation across ETFs, tokenization, DeFi, and crypto infrastructure.
