Grayscale Investments Head of Research Zach Pandl has identified Ethereum, Solana, BNB Chain, and the Canton Network as the primary blockchains positioned to capture the first wave of institutional capital. This influx rests on the anticipated passage of the U.S. CLARITY Act, which cleared the Senate Banking Committee on May 14, 2026, with a 15-9 vote. The asset manager argues these four networks lead the market in decentralized finance (DeFi) and tokenized assets, making them the most likely targets for regulated financial institutions.
The firm’s findings, detailed in the May 22, 2026, report “The Blockchains that Stand to Benefit from Regulatory Clarity,” suggest that a small group of networks currently dominate the sectors institutions care about most. According to Zach Pandl, while regulatory shifts like the CLARITY Act may eventually lift the entire industry, capital will initially flow to platforms with established infrastructure. This comes as Ether enters rare accumulation phase territory for many long-term holders awaiting these legislative catalysts.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have already provided an interim bridge for this transition. On March 17, 2026, the agencies issued a joint interpretation clarifying how digital commodities, stablecoins, and digital securities are classified. SEC Chairman Paul S. Atkins noted this effort serves as a vital tool for investors as Congress works to finalize bipartisan market structure legislation.
How Ethereum, Solana, and BNB Chain lead in DeFi
Ethereum remains the primary destination for tokenized assets with full on-chain functionality. It currently commands approximately 65% of the total value locked (TVL) across DeFi protocols and holds over 50% of all stablecoin balances as of mid-2025. Its ecosystem, bolstered by Layer 2 networks, continues to be a leader in transaction volume and application activity among institutional players.
Solana and BNB Chain follow Ethereum as top-tier contenders for absorbing institutional capital. Both networks are recognized for their high decentralized exchange volume and significant stablecoin supply. Grayscale also noted secondary-tier beneficiaries likely to gain from the New Clarity Act implementation, including the Tron network, Avalanche, and Ethereum Layer 2s like Arbitrum and Base.
Canton Network and the institutional niche
Canton Network has secured a specific foothold by building privacy-compliant applications specifically for regulated entities. It currently leads all blockchains in total on-chain capitalization with over $348 billion in tokenized asset value. This dominant position is anchored by the Depository Trust and Clearing Corporation (DTCC), which selected the network under the SEC official framework for its tokenized U.S. Treasury pilot.
The network boasts an impressive roster of validators, including J.P. Morgan, HSBC, and Visa. Approximately $350 billion settles daily on the Canton Network, which currently hosts over $6 trillion in tokenized real-world assets. Because it is designed for institutions, it circumvents many of the privacy and compliance hurdles associated with traditional public blockchains.
The legislative wait for the CLARITY Act
Despite the optimism within the private sector, the CLARITY Act faces a tight legislative window. The bill is competing for floor time in June against the Foreign Intelligence Surveillance Act and a recently passed housing bill. Podcast host Eleanor Terrett noted that the Senate only has four working weeks in June and three in July before the scheduled August recess.
Senator Cynthia Lummis has described the possibility of a June floor vote as “pretty optimistic.” While the industry waits for the full Senate vote and House reconciliation, Bitcoin is expected to maintain its role as the market’s leading collateral. Zach Pandl pointed out that although Bitcoin does not natively support smart contracts, it remains the industry’s most secure asset and will benefit directly from the coming regulatory clarity.
DeFi stakeholders are also active in the legal arena. The DeFi Education Fund (DEF), alongside 35 other signatories, has urged the SEC to upgrade its staff guidance into permanent law. This move would prevent future administrations from easily rolling back current exemptions for trading interface operators. Such stability is viewed as essential for the “Institutional Era” Grayscale described in its 2026 outlook.