Wall Street research firm Bernstein says the United States has positioned itself to become the world’s dominant hub for cryptocurrency and blockchain innovation, citing sweeping regulatory reforms and accelerating institutional participation.
Regulation Becomes the Foundation of U.S. Crypto Leadership
Bernstein’s latest report highlights two key pillars of the emerging U.S. framework: the GENIUS Act, now enacted into law, and the upcoming CLARITY Act, expected by late 2025. Together, they form the country’s first unified regulatory structure for digital assets.
The firm said the GENIUS Act has already reshaped the global stablecoin landscape, fueling a surge in U.S. dollar–backed supply past $260 billion. Meanwhile, the CLARITY Act will formally divide oversight between the SEC and CFTC, ending years of legal ambiguity that slowed development and discouraged institutional adoption.
At the center of this regulatory transformation is SEC Chair Atkins’ Project Crypto — described by Bernstein as the most ambitious modernization of U.S. markets since the early 2000s.
Project Crypto Seeks to Merge Traditional Markets With Blockchain
The initiative intends to restore innovation by reclassifying most digital assets outside traditional securities laws. This shift would allow:
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Tokenized stocks and bonds
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Unified licensing for broker-dealers across traditional and digital assets
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24/7 onchain settlement
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Lower operational costs for stablecoins, tokenized securities and crypto assets
Bernstein said this clarity has significantly reduced concerns over political turnover and encouraged deeper institutional commitments.
Institutional Capital Is Accelerating the Market’s Maturity
With clearer rules, institutional money has returned in force. Crypto ETFs now hold $160 billion in assets, with roughly 25% of spot ETF buyers coming from institutional investors.
The digital asset IPO market has also revived, raising $4 billion since January. Publicly traded crypto companies have seen their combined market value jump from $80 billion to $380 billion in less than two years. Coinbase and Robinhood are now part of the S&P 500, marking a milestone in mainstream financial integration.
A New, Sustainable Crypto Cycle Is Forming
Bernstein argued that this combination of regulation, institutional adoption and blockchain integration across capital markets is forming the basis of a more mature and durable crypto cycle — one less driven by speculative mania and more by structural demand.
In the firm’s view, the U.S. is no longer catching up to global crypto hubs. Instead, it is setting the standard, benefiting from clear rules, capital depth, and a regulatory regime designed to support long-term digital asset growth.
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