Benchmark analyst: The "CLARITY" bill may become a watershed moment for the institutionalization of the crypto market.

On July 14, Benchmark Investment Company analyst Mark Palmer pointed out in a recent research report that the long-gestating CLARITY Act could become a turning point for the digital asset market, potentially driving institutional investors to get on board on a large scale. The Act aims to establish a clear regulatory framework for digital assets in the United States, delineating Crypto Assets as either commodities or securities. Benchmark stated in its report on Monday that this legislation could provide much-anticipated regulatory certainty for traditional Financial Institutions such as asset management firms, hedge funds, and banks. Due to uncertainties regarding legal Compliance, many institutions have thus far remained on the sidelines. The report noted that although the current SEC Chairman Paul Atkins' leadership of the commission takes a 'constructive approach' toward Crypto Assets, the lack of a codified regulatory framework means that if a government opposing Crypto Assets were to emerge in the future, it could quickly overturn any pro-Crypto policies set by the agency. The report stated that this policy uncertainty makes it challenging for institutions planning to develop digital asset businesses to engage in long-term planning. If the Act is passed, it would eliminate much of the uncertainty and lay a stable foundation for broader industry participation.