According to a note by benchmark analyst Mark Palmer, the Longtime Clarity Act could prove to be a game changer in the digital asset market, potentially introducing an instinct for institutional adoption.
“Clear Method” It aims to establish a clear regulatory framework for digital assets in the United States, distinguishing cryptocurrencies into commodities or securities.
Palmer said in a report released on Monday that the legislation could provide long-term regulatory clarity for traditional financial institutions, including asset managers, hedge funds and banks, many of which remained off the market due to legal and compliance uncertainties.
The current Securities and Exchange Commission (SEC)Under Chairman Paul Atkins, the analyst wrote that under President Paul Atkins, “the constructive position on cryptocurrencies, the lack of a codified regulatory framework means that there is still an anti-future possibility that the anti-Criputo government can quickly revoke any pro-Criputo rules set by the agency.”
This vulnerability makes institutional players looking to build digital asset products a long-term plan, the report said. The bill passed, which could eliminate many uncertainties and provide a stable basis for wider industry participation.
The report added that the purchase amount of Galaxy Digital and Coinbase is very well positioned and can be adopted from crypto institutions once it is passed, which can happen once it is passed.
Read more: Digital assets are one step closer to regulatory clarity
