Ric Edelman Says CLARITY Act Could Drive Major Institutional Crypto Investment

Digital Assets Council of Financial Professionals founder Ric Edelman believes the proposed CLARITY Act could become a turning point for the cryptocurrency industry by encouraging large-scale institutional investment in Bitcoin and other digital assets.

Despite ongoing regulatory uncertainty and weak market sentiment, Edelman argues that institutional interest in crypto continues to grow. According to him, the current prices of cryptocurrencies do not accurately reflect the progress being made across the digital asset sector.

“Crypto prices are not reflecting what’s happening in the world of crypto,” Edelman said, highlighting the increasing adoption of blockchain technology and tokenization initiatives by major financial institutions.

Leading Wall Street firms, including BlackRock, JPMorgan, Morgan Stanley, Fidelity, Franklin Templeton, State Street, and Invesco, continue expanding their involvement in blockchain-based financial products. Edelman noted that institutional demand for digital assets is steadily increasing, with many firms preparing to enter the market for the first time.

He stated that approximately 95% of institutions that currently have no crypto exposure are expected to make their first allocation to digital assets this year. Additionally, around 75% of institutions that already hold crypto plan to increase their investments.

However, Edelman acknowledged that investors remain cautious due to factors such as Bitcoin ETF outflows, uncertainty surrounding crypto regulations, and opposition from lawmakers including Elizabeth Warren and Bernie Sanders.

According to Edelman, the CLARITY Act could be the most important catalyst for the next phase of crypto market growth. The legislation is expected to provide regulatory clarity, giving traditional financial institutions greater confidence to participate in the digital asset market.

He explained that clear rules would allow the traditional finance sector to become fully engaged in cryptocurrencies. If the bill is passed, Edelman believes it could be viewed as a significant milestone that attracts substantial institutional capital into the industry.

On the other hand, delays or failure to pass the legislation could negatively impact short-term market sentiment and slow momentum within the sector.

While the timeline for the bill remains uncertain, White House crypto advisor Patrick Witt has reportedly suggested that progress could occur by July 4. Looking ahead, Edelman remains optimistic about the long-term outlook for digital assets and predicts Bitcoin could eventually reach $150,000 or higher, although regulatory developments will likely remain a key driver of market performance throughout the year.