The U.S. has made a significant step in regulating the digital asset market with the passage of the CLARITY Act, bringing much-needed clarity and paving the way for increased institutional involvement. This act clarifies regulatory roles for digital assets, fostering growth in Bitcoin, Ethereum, and stablecoins. 59% of investors plan to increase their crypto allocations in 2025, driven by a surge in market capitalization. The Act has facilitated a shift toward institutional engagement with crypto, creating opportunities for new products like ETFs and mutual funds. This legislative clarity echoes past regulatory advances such as the spot Bitcoin ETF in 2024, which fueled similar growth, demonstrating a positive correlation between regulation and market expansion.