Goldman Sachs said a better regulatory environment and the rise of crypto use cases beyond trading are supporting a constructive view on the sector. The bank is particularly positive on infrastructure companies that serve the crypto ecosystem, as those businesses are less directly tied to market cycles.
In a report published Monday, the Wall Street firm said regulatory uncertainty remains the biggest barrier for institutions, but that picture is changing quickly. Analysts led by James Yaro wrote that a clearer rulebook could keep institutional adoption moving, especially among buyside and sellside financial firms, while also supporting new crypto applications outside pure trading activity.
U.S. market structure bills are seen as a major trigger
Yaro said upcoming U.S. market structure legislation could become an important catalyst for the next stage of institutional adoption. Draft bills circulating in Congress would clarify how tokenized assets and DeFi projects should be regulated and define the responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Goldman said those steps are essential if institutional capital is to enter the market at a larger scale. The report added that passage in the first half of 2026 would carry extra weight, given that the U.S. midterm elections later that year could slow legislative progress.
SEC policy shift changed the tone for the industry
According to the report, the arrival of President Donald Trump was followed by leadership changes at the SEC, ending with Paul Atkins being confirmed as chair. After that shift, the regulator pulled back from years of aggressive enforcement against the crypto industry, dropping nearly all pending cases and stepping away from several active court disputes.
Goldman said Trump made support for the U.S. crypto industry a central policy objective, and Atkins echoed that position by treating it as a top SEC priority. For institutions that have waited on clearer regulatory boundaries, that change in direction matters.
Survey data shows regulation is still the main sticking point
Goldman cited its own survey showing that 35% of institutions view regulatory uncertainty as the biggest obstacle to adoption, while 32% see regulatory clarity as the top catalyst. Interest is growing. Actual allocations are still limited.
The bank said institutional asset managers have invested about 7% of assets under management in crypto, yet 71% of respondents said they expect to increase exposure over the next 12 months. That leaves room for expansion if policy conditions continue to improve.
ETFs have already become a familiar access point
Goldman said institutional adoption has already accelerated through investment vehicles that traditional finance understands well, especially ETFs. Since approval in 2024, bitcoin ETFs had grown to about $115 billion in assets by the end of 2025, while ether ETFs had passed $20 billion.
The report also said hedge fund participation has increased, with a majority now holding crypto and planning to raise allocations. Goldman’s view is that a clearer regulatory framework would keep supporting institutional participation, especially for companies focused on custody, trading, clearing, and other core infrastructure functions.