Current sentiment around crypto regulation remains cautiously optimistic, with much of the focus placed on the long-awaited Crypto Market Structure bill, commonly referred to as the CLARITY Act.
Although price movements in the market have remained limited, industry insiders believe that regulation, rather than short-term speculation, will play a key role in shaping the next phase of crypto. This is why many now view 2026 as a potential turning point after a prolonged period of market weakness.
Crypto Market Structure and Regulatory Clarity Bill
Anthony Scaramucci said the crypto market structure bill must be passed before the upcoming US midterm elections. The belief that the bill will eventually become law is already reflected in market expectations. However, any further delays could slow progress, especially in areas like tokenization and real-world blockchain use cases.
Scaramucci also noted that altcoins tend to move based on utility rather than speculation. Without clear regulatory rules, many projects struggle to grow beyond the early stages of development.
US Crypto Regulations and Institutional Outlook
Coinbase Institutional’s chief strategy officer reinforced this view, explaining that the market structure legislation is more fundamental than previous crypto-related bills, including the GENIUS Act. While the GENIUS Act helped banks get involved in stablecoins, the CLARITY Act aims to define how the broader crypto market operates in the United States.
Since the bill deals with the trading, custody and classification of tokens, its scope is much broader. This complexity has slowed progress but also increases the potential long-term impact once the framework is in place.
On-Chain Data Signals and Market Trends in Early 2026
The analyst highlighted several on-chain and market indicators pointing to a possible shift in early 2026. Bitcoin dominance metrics have started to improve, a trend often seen near longer-term market lows.
The data also shows growing accumulation of Bitcoin and Ethereum, while long-term holders remain largely inactive. Historically, this combination suggests limited downside risk. At the same time, broader valuation metrics indicate a rotation of capital into assets that appear undervalued.
Ethereum network activity supports this trend, with daily transactions now exceeding levels seen during the 2021 NFT cycle. These signals have typically formed towards the end of downtrends and before stronger rallies.
Stablecoins, tokenization and real use of blockchain
According to Coinbase, the CLARITY Act could extend the progress made by the GENIUS Act beyond stablecoins. Clear market rules would allow companies outside the banking sector to issue compliant tokens and stablecoins.
This could enable companies to develop blockchain-based payment systems, loyalty programs and digital asset platforms. Industry sources suggest this step is necessary for broader blockchain adoption beyond trading-focused use cases.
Why 2026 is attracting attention in the crypto market
The analyst concludes that institutional participation is already increasing, even if prices do not yet reflect it. Bitcoin ETFs have seen some of the largest launches in U.S. ETF history, despite limited promotion.
As regulation improves and financial advisors gain wider access to crypto-related products, adoption could further grow. With the gradual alignment of regulation, capital inflows, and infrastructure, 2026 is increasingly seen as a year where the crypto market could regain momentum.
