Financial advisor Ric Edelman has predicted that up to 95% of institutions currently holding no crypto assets could make their first allocation if the CLARITY Act passes into law. In a recent interview, Edelman identified regulatory uncertainty as the primary barrier preventing larger institutional crypto adoption.
Institutional Buildout Accelerates Despite Price Disconnect
Edelman noted a growing disconnect between cryptocurrency prices and industry activity. Major Wall Street firms—including BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco, and Fidelity—continue expanding their blockchain and tokenization offerings. "Crypto prices are not reflecting what’s happening in the world of crypto," he said, pointing to rising institutional engagement even as retail investors remain cautious.
According to Edelman, industry surveys show that 95% of institutions with zero crypto exposure expect to enter the market this year. Among those already holding digital assets, roughly three-quarters plan to increase their positions. Yet capital has not flowed in at the scale many anticipated. Edelman attributed the hesitation to uncertainty around U.S. crypto legislation, periodic Bitcoin ETF outflows, and political opposition from figures like Senators Bernie Sanders and Elizabeth Warren.
Career Risk and Political Headwinds
Career risk remains a factor: decision-makers at financial firms are often more concerned about the professional consequences of adopting crypto than its long-term opportunities. Edelman sees the CLARITY Act as the event that could provide the certainty needed for large-scale participation from traditional finance.
The legislation is currently under Senate review. The U.S. House has scheduled a hearing for July 17, but the Senate has not yet set a floor vote date. White House crypto adviser Patrick Witt had indicated the bill could pass by July 4.
However, opposition is mounting. The Alliance to End Human Trafficking (AEHT) wrote to Senate leaders John Thune and Chuck Schumer, urging them to revisit Section 604 of the bill, which incorporates the Blockchain Regulatory Certainty Act. The group argues the provision could create loopholes that hinder tracking of financial flows linked to human trafficking and other crimes, calling for stronger anti-money laundering safeguards.
Edelman warned that delays or failure could weigh on sentiment, while a successful vote would encourage traditional institutions to fully engage. He remains optimistic about digital assets and expects Bitcoin could eventually reach $150,000 or higher, though regulatory developments will likely dominate market performance this year.