Regulatory improvements and institutional adoption of cryptocurrency platforms, including Tether—what the Clarity Act signifies

Goldman Sachs analysts, including James Yaro, in their latest analytical report, point out that the phased development of the regulatory environment for the cryptocurrency market within the United States is the most critical factor in promoting the expansion of institutional investors’ adoption of stablecoin platforms like Tether and related assets. Especially from the perspective of buyers and sellers—financial institutions—there is an expectation for the development of new use cases beyond cryptocurrency trading, and the previously hesitant multi-faceted applications due to legal ambiguity are expected to accelerate.

Why the Development of the Regulatory Environment Matters to Institutional Investors

The report emphasizes that the ongoing “Clarity Act” cryptocurrency market structure bill in the U.S. Congress represents a significant turning point. If enacted, it will clearly define the regulatory framework for tokenized assets and decentralized finance (DeFi), with a strict delineation of responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Such regulatory development will be a prerequisite for significantly lowering the barriers for compliance-focused institutional capital to enter the market.

Market Structural Shift with the Implementation of the Clarity Act

According to Goldman Sachs’ analysis, the significance of this bill goes beyond mere legal clarification. The unification of the regulatory framework will enable mainstream stablecoin companies like Tether to establish a stable business foundation, and the resulting increase in liquidity is seen as a catalyst for promoting institutional use of cryptocurrencies overall. Particularly, as regulatory clarity in the DeFi space becomes clearer, financial solutions aimed at institutions—previously avoided—may become a reality.

Legislative Timeline for 2026 and Political Constraints

However, analysts warn that there are time constraints regarding the bill’s passage. Goldman Sachs indicates that the bill needs to be passed within the first half of 2026; if this deadline is missed, the subsequent legislative process could face prolonged delays due to the political vacuum caused by the midterm elections in November. Senator Tim Scott, chairman of the Senate Banking Committee, recently indicated that the relevant committee is soon to debate amendments to the Clarity Act and intends to move toward a voting stage.

Industry Outlook: Full-Scale Development of Cryptocurrency Platforms Including Tether

Industry insiders are cautiously optimistic. While market adjustments from late 2025 to early 2026 have temporarily slowed the pace of short-term adoption, if the Clarity Act is successfully enacted, it could dramatically accelerate the entry of institutional investors into cryptocurrencies. The significance of regulatory clarity for stablecoin issuers like Tether is that it greatly improves business predictability, which in turn is expected to create a positive feedback loop leading to the overall expansion of the institutional market.