Benchmark Analyst: <i>The CLARITY Act</i> Could Be a Watershed Moment for the Cryptocurrency Market Institutionalization
BlockBeats News, July 14th - Mark Palmer, an analyst at Benchmark investment firm, pointed out in a recent research report that the long-awaited CLARITY Act could be a turning point for the digital asset market, potentially driving mass adoption by institutional investors. The Act aims to establish a clear regulatory framework for US digital assets, explicitly defining cryptocurrency as either a commodity or security.
In its report on Monday, Benchmark stated that this legislation could provide long-awaited regulatory certainty for asset management companies, hedge funds, banks, and other traditional financial institutions. Due to the uncertainty in legal compliance, many institutions have remained cautious to date. The report noted that although the current SEC chairman, Paul Atkins, leads the SEC with a "constructive attitude" towards cryptocurrency, the lack of a written regulatory framework means that any future government opposing cryptocurrency could quickly overturn any pro-crypto policies established by the institution.
The report stated that this policy uncertainty makes it difficult for institutions planning to develop digital asset businesses to engage in long-term planning. If the Act is passed, most of the uncertainty will be eliminated, laying a stable foundation for broader industry participation.
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