Grayscale, a leading digital asset manager, has identified four primary blockchain networks—Ethereum, Solana, BNB Chain, and Canton Network—as the projects best positioned to capture institutional capital following the enactment of the Digital Asset Market Clarity Act. In a research report published around May 21-22, 2026, the firm’s Head of Research Zach Pandl highlighted these networks for their significant “on-chain finance footprints.” This assessment follows a critical legislative milestone on May 14, 2026, when the bill known as the CLARITY Act cleared the Senate Banking Committee with a 15-9 vote.
The legislative momentum suggests a shift after years of regulatory ambiguity in the United States. The bill previously passed the U.S. House of Representatives on July 17, 2025, with a bipartisan majority of 294 to 134. It now moves toward a full Senate floor vote, where it requires 60 votes for final passage. Grayscale’s analysis posits that regulated capital will naturally flow toward networks already integrated with traditional financial infrastructure. Treasury Secretary Scott Bessent supported this push in an April 8, 2026, op-ed in the Wall Street Journal, stating that development has historically moved abroad due to a lack of clear domestic rules.
For market participants, these developments provide a roadmap for long-term valuation based on utility rather than speculation. While Ether enters rare accumulation phase as markets cool, the formalization of the CLARITY Act could provide the legal framework necessary for multi-billion dollar institutional entries. Grayscale believes that while Bitcoin remains the industry’s most secure collateral, its limited smart contract support means that specialized altcoin networks will lead the charge in tokenization and decentralized finance.
Leading blockchains positioned for institutional capital flows
Grayscale’s selection criteria focused on networks leading in three key areas: tokenized assets, stablecoin supply, and Total Value Locked (TVL) in DeFi. According to Zach Pandl, Ethereum (ETH), Solana (SOL), and BNB Chain (BNB) are the current frontrunners across these sectors. Ethereum remains the leader for assets with full on-chain functionality, according to official Grayscale research, while Solana and BNB Chain follow closely due to their high stablecoin liquidity and active ecosystems.
Beyond the primary leaders, Grayscale flagged a secondary tier of potential winners. This list includes Avalanche, Tron, and Hyperliquid, as well as Ethereum Layer-2 solutions like Base and Arbitrum. The asset manager views these platforms as being “already wired into traditional finance pipes,” making them ready-made for regulated institutional use. Currently, the total value locked across the DeFi sector sits at approximately $82.08 billion, representing a significant pool of capital that could grow under federal oversight.
Canton Network (CC) earned a specific mention for its unique focus on regulated institutions. Unlike fully public retail chains, Canton is a privacy-oriented Layer-1 designed for corporate use. The network already sees $350 billion in daily settlements and hosts over $6 trillion in tokenized real-world assets. With entities like JPMorgan and the DTCC building in production on Canton, Grayscale regards it as a critical bridge for Wall Street’s transition to on-chain finance.
Regulatory framework and stablecoin restrictions under CLARITY Act
The CLARITY Act, formally known as the Digital Asset Market Clarity Act of 2025 (H.R. 3633), creates a clear jurisdictional split. It grants the U.S. Commodity Futures Trading Commission (CFTC) exclusive oversight over digital commodities. This move aligns with recent statements where officials claimed the CFTC is ready to oversee crypto market operations. The U.S. Securities and Exchange Commission (SEC) retains jurisdiction over investment contract assets, specifically those where profit depends on the efforts of others.
One of the bill’s most significant provisions involves the stablecoin market. The legislation introduces a ban on interest payments for passive stablecoin holdings across third-party platforms. This measure seeks to ensure stablecoins are used primarily as a medium of exchange or collateral rather than serving as unregulated yield-bearing investments. It effectively treats stablecoins as cash equivalents within a regulated banking framework.
The bill also addresses tax and structural loopholes. It is expected to close the crypto wash-sale loophole under IRC § 1091 and expand Form 1099-DA reporting requirements. While these compliance measures are rigorous, the industry generally views them as necessary for the “rising tide” of legitimacy that Grayscale predicts. A carve-out in Section 604 also aims to protect non-custodial developers from being classified as money transmitters, preserving the decentralized nature of underlying protocols.
Tokenized assets and the future of on-chain finance
As the crypto market window closes as utility shifts dictate 2026, the focus has moved toward the $348 billion tokenized asset market. Grayscale’s research suggests that networks capable of handling complex transactions, such as real estate or debt instruments, will dominate. This is why Ethereum and Canton Network are seen as pivotal; they provide the technical depth required for institutional-grade tokenization that simpler blockchains cannot currently match.
The expected legislative outcome would settle long-standing debates over asset classification. By dividing the market into digital commodities, investment contract assets, and permitted payment stablecoins, the U.S. government provides the “clarity” that gives the act its name. Grayscale argues that once these rules are codified, the focus will shift from regulatory survival to technical competition, where the networks with the best infrastructure for real-world assets will ultimately win.