Goldman Sachs has identified regulatory improvements as a crucial factor for increased institutional adoption of cryptocurrencies in 2026. The bank's report emphasizes that regulatory clarity is essential for financial firms and the development of new crypto use cases beyond trading. Analysts, led by James Yaro, noted that forthcoming U.S. market structure legislation could significantly impact the industry, especially with potential changes in SEC leadership and policy direction under President Donald Trump. The report highlights that 35% of institutions view regulatory uncertainty as the main barrier to crypto adoption, while 32% see regulatory clarity as a catalyst. Institutional asset managers currently allocate about 7% of their assets to crypto, with 71% planning to increase exposure. The growth of crypto ETFs, particularly Bitcoin and Ether, has been notable, with assets reaching $115 billion and $20 billion, respectively, by the end of 2025. Additionally, the expansion of tokenization, DeFi, and stablecoins is expected to continue, supported by recent legislative and regulatory changes.