While the final passage of the CLARITY Act—often called the crypto market structure bill—has been delayed in Congress, some experts believe its eventual approval could trigger an unprecedented influx of capital into the crypto sector.
Trillions Awaiting Entry
In a recent post on X, the analyst known as 360Trader argued that trillions of dollars in institutional money are waiting for regulatory clarity before entering the digital asset space. According to his assessment, the CLARITY Act could be the trigger that meaningfully opens Wall Street’s doors to crypto, potentially channeling over $5 trillion into the market over time.
360Trader referenced comments from White House Digital Asset adviser Patrick Witt, who noted that trillions in institutional capital are effectively sidelined as firms await legal certainty. Large asset managers like BlackRock are often cited as examples of institutions held back by the current patchwork of regulations.
If the CLARITY Act becomes law, the expert believes the total crypto market capitalization could surge past $4 trillion, drawing parallels to the rally that followed the approval of spot Bitcoin ETFs in 2024.
A Catalyst for the Next Bull Run?
Stablecoins are another focal point of the discussion. The proposed framework would provide clearer authorization for banks to issue stablecoins. This market has already grown significantly, with its supply reportedly reaching $300 billion in 2025 and processing around $33 trillion in transaction volume—figures that surpass Visa’s total network throughput. The prospect of major banks like JPMorgan launching fully integrated, payment-backed stablecoins is seen as a potential turning point for the sector.
The yield offered by some stablecoin products is also attracting attention. Currently, certain products offer returns between 3% and 5%, compared to traditional savings accounts averaging about 0.07%. 360Trader suggested this disparity could drive a massive reallocation of capital—potentially up to $6 trillion—from conventional bank deposits into crypto-linked instruments. Pension funds, endowments, and retail investors could all gain broader access to these higher-yielding products.
Simultaneously, traditional financial institutions may start integrating decentralized finance (DeFi) infrastructure to enable faster settlements and more efficient transaction systems.
However, the traditional banking sector has consistently resisted stablecoin yield structures, citing concerns over the impact on their deposit bases. This resistance is a key reason for the current legislative delay and ongoing White House discussions.
In the expert’s view: “I’m bullish on CLARITY unlocking trillions in dormant capital. This could be the catalyst that separates the next bull run from everything we’ve seen before.”
Frequently Asked Questions
Of course Here is a list of FAQs about the potential 5 trillion crypto inflow following the CLARITY Act designed for a range of audiences
Beginner General Questions
1 What is the CLARITY Act in simple terms
Its a proposed US law designed to create clear consistent rules for cryptocurrency and digital assets Its main goal is to separate digital securities from digital commodities and define who regulates each
2 Why would this law cause 5 trillion to flow into crypto
Experts believe clear rules will remove a major barrier for large traditional investors With regulatory uncertainty gone these massive institutions can confidently invest trillions of dollars theyve been holding back
3 Is this 5 trillion guaranteed to happen
No its a prediction not a guarantee The 5 trillion figure is an estimate based on the potential unlocking of institutional capital It depends on the final details of the law how smoothly its implemented and overall market conditions
4 As a regular person how could this affect me
Market Impact Such a huge influx of money could significantly increase the prices of major cryptocurrencies but could also lead to more volatility in the short term
Better Protections Youd likely have more consumer protections clearer tax rules and safer platforms to use
Mainstream Adoption Crypto would become more integrated into everyday financial products like your 401 or banking app
5 Should I buy crypto now because of this news
This is a major longterm structural change not a shortterm price signal Never invest based solely on one piece of news Always do your own research understand the risks and only invest money you can afford to lose
Intermediate InvestorFocused Questions
6 Which cryptocurrencies would benefit the most
Large established assets like Bitcoin and Ethereum are expected to be the primary beneficiaries initially as they are most likely to be classified as commodities and are the easiest for big institutions to buy Tokens deemed digital securities may face more complex rules
7 Whats the difference between a digital commodity and a digital security under this act