Clarity law could be a turning point for the institutional acceptance of crypto: benchmark

The long-awaited Clarity law could prove to be a turning point for the markets of digital assets and possibly herald a wave of institutional adoption, according to a note from the benchmark analyst.

The Clarity Act strives to create a clear regulatory framework for digital assets in the United States by classifying cryptocurrencies either as goods or securities.

In a report published on Monday, Palmer said that legislation could offer long-awaited regulatory clarity for traditional financial institutions, including asset managers, hedge funds and banks, many of whom have so far remained on the sidelines due to legal and compliance uncertainties.

While the current Securities and Exchange Commission (SEC) Under the leadership of chairman Paul Atkins, a “constructive attitude towards crypto” means the lack of a codified regulatory framework that there is the possibility that a future, cryptofo-one administration quickly introduced all PRO crypto regulations that the authority could introduce, “wrote the analyst.

This weak point has made long -term planning for institutional actors who want to build digital assets, the report said. The law, if it is adopted, could eliminate a large part of this uncertainty and create a stable basis for a broader participation in the industry.

The Galaxy Digital and Coinbase rated “Buy” are “extremely well positioned” in order to benefit from the increased institutional acceptance of cryptocurrencies, which is likely to occur after the law has been passed, the report says.

Read more: Digital assets are one step closer to regulatory clarity