The asset management firm Grayscale names Ethereum, Solana, BNB Chain, and Canton Network as the four primary altcoins poised to secure massive institutional inflows following the implementation of the CLARITY Act. In a research report published on May 22, 2026, Zach Pandl, Grayscale Head of Research, argued that these specific networks possess the necessary on-chain depth and infrastructure to thrive under a formalized U.S. regulatory framework. The analysis comes just days after the Digital Asset Market Clarity Act of 2025 cleared the Senate Banking Committee on May 14 with a bipartisan 15-9 vote.
The legislative progress of the CLARITY Act marks a turning point for American digital asset policy. By establishing clear jurisdictional lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the bill aims to remove the “regulation by enforcement” cloud that has long deterred conservative institutional capital. Zach Pandl suggests that once these hurdles vanish, capital will naturally gravitate toward blockchains that dominate in stablecoin supply, decentralized finance (DeFi) volume, and tokenized real-world assets.
This surge in political momentum has already begun to impact how investors view established networks. As market sentiment shifts as CLARITY Act advances, Grayscale’s report highlights that the “tokenization megatrend” is no longer a distant theory but a functional reality for specific ecosystems. The firm’s selection criteria focused on networks with full on-chain functionality—those capable of moving beyond simple peer-to-peer transfers into complex, regulated financial instruments.
Ethereum and Solana lead the pack for institutional adoption
Ethereum (ETH) remains the primary beneficiary in Grayscale’s assessment due to its unrivaled dominance in Total Value Locked (TVL) and stablecoin liquidity. Zach Pandl noted that Ethereum serves as the premier destination for assets requiring full on-chain functionality. Despite recent market volatility, the network continues to house the largest concentration of institutional-grade DeFi protocols, making it an obvious first choice for traditional firms entering the space via the new regulatory channels provided by the CLARITY Act.
Solana (SOL) follows closely as the second-ranked network in terms of on-chain asset functionality and stablecoin activity. Grayscale’s research emphasizes Solana’s high throughput as a critical advantage for institutions requiring low-latency settlement. As the move to expand asset whitelists gains traction globally, Solana’s inclusion in the “big four” highlights its transition from a retail-centric “Ethereum killer” to a legitimate institutional backbone.
BNB Chain (BNB) also secured a spot in the top tier, recognized for its strong foothold in global stablecoin markets and robust DeFi ecosystem. The network’s resilience and high transaction volume make it a likely target for capital looking for established, high-liquidity environments. This institutional focus coincides with recent industry movements, such as when VanEck and Grayscale moved toward spot BNB ETF launches, signaling a broader acceptance of the Binance-linked chain among American asset managers.
Canton Network and the rise of regulated private blockchains
While Ethereum, Solana, and BNB Chain represent public ecosystems, Canton Network (CC) stands out as a unique institutional play. Unlike its peers, Canton is a privacy-focused Layer-1 blockchain designed specifically for regulated entities. Grayscale’s report notes that Canton already facilitates $350 billion in daily settlements and hosts over $6 trillion in tokenized real-world assets. Its validator set is a “who’s who” of traditional finance, including J.P. Morgan, HSBC, Visa, and the DTCC.
Canton’s inclusion in the report underscores a bifurcated future where public blockchains handle open liquidity while private-but-interoperable networks like Canton manage sensitive institutional settlements. Grayscale highlighted that Canton currently hosts the DTCC’s tokenized U.S. Treasury pilot program. This move toward “regulated DeFi” is a central pillar of the CLARITY Act, which seeks to categorize assets into digital commodities, investment contracts, or permitted payment stablecoins.
Broader market impact and the road to Senate passage
Beyond the top four, Grayscale identified a second tier of altcoins likely to benefit from the new regulatory clarity. These include:
- Avalanche (AVAX)
- Base (Optimism-linked L2)
- Arbitrum (ARB)
- Hyperliquid (HYPE)
- Tron (TRX)
The Digital Asset Market Clarity Act (H.R. 3633) now heads to the full Senate floor. However, passing the 60-vote threshold remains a steep challenge. While Democratic Senators Ruben Gallego and Angela Alsobrooks crossed party lines to support the bill in committee, the timing for a final floor vote is debated. Senator Cynthia Lummis has cautioned that a June vote is “probably pretty optimistic,” though many policy strategists believe the bill must pass by July 2026 to be signed into law before the end of the year.
Alex Thorn, Head of Research at Galaxy Research, has estimated that the bill could potentially reach the president’s desk for signing as early as the week of August 3, 2026. For altcoins like Ethereum and Solana, that signature would represent the end of years of legal ambiguity. Grayscale’s Zach Pandl concludes that the removal of this “regulatory tax” will finally allow big-bank capital to flow into on-chain finance at an unprecedented scale.