Edelman: CLARITY Act Could Bring 95% of Institutions to Crypto

Ric Edelman predicts that if the CLARITY Act becomes law, 95% of institutions without crypto exposure could enter the market. The prediction came in a recent interview where Edelman said the disconnect between crypto prices and institutional activity is widening.

Major Wall Street firms including BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco and Fidelity continue building tokenization products, Edelman noted. "Crypto prices are not reflecting what's happening in the world of crypto," he said, pointing to rising institutional engagement even as investors remain cautious.

Capital has not flowed in at the scale many expected. Edelman attributed the hesitation to regulatory uncertainty, periodic Bitcoin ETF outflows, political opposition from lawmakers such as Bernie Sanders and Elizabeth Warren, and career risk for decision-makers. He said many financial firm leaders worry more about the professional consequences of adopting crypto than the long-term opportunity.

The CLARITY Act sits at the center of his outlook. The market structure bill would establish rules for digital assets and define regulatory responsibilities. Edelman said passage would give companies clearer guidance and remove one of the biggest barriers to adoption.

The House has scheduled a hearing on the bill for July 17. The Senate has not yet announced a floor vote date. White House crypto adviser Patrick Witt indicated the legislation could pass by July 4, Edelman said. A successful vote could encourage traditional financial institutions to become fully engaged. Delays or failure could weigh on sentiment as investors react to lost momentum.

Additional scrutiny emerged when the Alliance to End Human Trafficking urged Senate leaders to revisit Section 604, which would incorporate the Blockchain Regulatory Certainty Act. The group argued the provision could create gaps in tracking financial activity tied to trafficking and called for stronger anti-money laundering safeguards. For a deeper look at the trafficking backlash, see CLARITY Act faces trafficking backlash as Senate vote nears.

Edelman remains optimistic on digital assets longer term. He expects Bitcoin could eventually reach $150,000 or higher, though regulatory developments will likely determine near-term performance.

Morgan Stanley (Alpha Score 64) and State Street (Alpha Score 75) are among the firms building tokenization infrastructure. Their direct crypto holdings remain small. If the CLARITY Act passes, those firms could gain clearer rules for offering crypto services to clients, potentially accelerating the institutional shift Edelman describes.