The 2026 Capital Market Enters the CLARITY Era: Structural Transformation Driven by 24/7 Trading and Regulatory Clarity

As the cryptocurrency market enters 2026, it is not merely a year of price fluctuations but a pivotal turning point where the entire capital market is set to undergo fundamental transformation. Of particular note are regulatory clarity and the transition to continuous markets, and what these developments mean for institutional investors. While legislative frameworks such as the CLARITY Act are advancing in the United States, the rapid settlement enabled by tokenization is poised to significantly alter market structures.

Innovation in Capital Efficiency Brought by Tokenization

Historically, capital markets have operated based on assumptions established over 100 years ago. These include access-focused price discovery, batch settlements, and idle collateral management. However, this structure is beginning to break down.

With the acceleration of tokenization and settlement cycles shrinking from days to seconds, 2026 marks a critical phase where continuous markets move from theoretical concepts to practical implementation. Industry forecasts suggest that by 2033, the tokenized asset market could reach $18.9 trillion, indicating an impressive compound annual growth rate of 53%. This figure is not speculative but rather a conservative estimate.

Considering efforts over the past 30 years to reduce market friction through electronic trading, algorithmic execution, and real-time settlement, this growth projection is a logical extension. If the first domino falls, it is entirely plausible that by 2040, 80% of global assets could be tokenized.

Clarifying Regulations and Preparing Institutional Investors

In a 24/7 market, the changes go beyond just trading hours. Capital efficiency will fundamentally transform. Currently, institutional investors need to allocate assets days in advance. Entering new asset classes requires onboarding and collateral placement that takes at least 5–7 days, creating delays that burden the entire market.

In terms of regulatory clarity, legislative efforts like the CLARITY Act are critically important. Discussions around stablecoin rewards are already underway in the U.S., but it is essential to set aside minor disagreements and seek compromise. The launch of Interactive Brokers’ 24/7 deposit capabilities in USDC (and soon RLUSD and PYUSD) reflects a pragmatic move aligned with evolving regulatory environments.

Tokenization will enable collateral to become interchangeable and settlements to be completed in seconds, allowing portfolio rebalancing to occur continuously. Equities, bonds, and digital assets will become interchangeable components within a unified, always-on capital allocation strategy.

Responding to a 24/Hour Market: Urgent Structural Reforms

Transitioning to continuous markets entails a fundamental overhaul of operational frameworks for institutional investors. Risk management, finance, and settlement teams must shift from individual batch cycles to continuous processes. Specifically, this includes 24/7 collateral management, real-time AML/KYC, integrated digital custody, and functional acceptance of stablecoins.

Institutions capable of continuously managing liquidity and risk will gain a flow advantage that others cannot structurally match. Infrastructure is already forming, with regulated custodians and credit intermediary solutions moving from proof-of-concept to full operational stages.

The SEC’s approval of DTCC’s development of a securities tokenization program—recording ownership of stocks, ETFs, and government bonds on blockchain—indicates that regulators are seriously considering this convergence.

Stablecoin Integration and Liquidity Synergies

Removing delays through tokenization creates secondary liquidity effects. Capital previously confined within traditional settlement cycles is liberated. Stablecoins and tokenized money market funds enable instant movement across markets that were previously segmented.

Order books deepen, trading volumes increase, and settlement risks decrease, accelerating turnover for both digital and fiat currencies. For example, South Korea’s lifting of a nine-year ban on corporate crypto investments and the integration of stablecoin funding by major securities firms exemplify the global regulatory environment trending toward easing.

Global Trends and Market Fault Lines

While the U.S. and UK face regulatory challenges, adoption is accelerating across the Asia-Pacific region. Korea’s lifting of corporate fund restrictions, major securities firms integrating stablecoin funding, and increased new users on the Ethereum network all point to a clear global adoption trend.

Meanwhile, in the UK, some Labour politicians are pushing to ban political donations via cryptocurrencies due to concerns over foreign interference in elections, reflecting cautious regulatory movements at the granular level.

Key Points for 2026: Legislation, Distribution, and Quality

The reason 2026 is called the “Second Year” is that markets with solid foundations are entering a genuine growth phase. There are three key points:

Legislation and Regulatory Progress: Advancing major bills like the CLARITY Act requires setting aside minor disagreements and seeking compromise. Without regulatory clarity, the market cannot move to the next stage.

Building Distribution Channels: The biggest challenge for crypto assets is establishing meaningful distribution channels beyond self-trading traders. Incentives similar to other asset classes must be provided to retail, mass affluent, high-net-worth, and institutional investors.

Focusing on Quality: The trend of high-quality assets like CoinDesk 20 maintaining dominance is clear. The top 20 assets, including currencies, smart contract platforms, DeFi protocols, and infrastructure, offer diversified investment opportunities and new themes without cognitive overload.

Bitcoin and Gold: Turning Point in Correlation

Intriguing data suggests a shift. As gold hits record highs, Bitcoin’s 30-day rolling correlation has for the first time turned positive at +0.40 within the year. Market watchers need to monitor whether the sustained upward trend in gold will mid-term lift Bitcoin or if Bitcoin’s price weakness confirms a decoupling from traditional safe assets.

Markets Are Always Evolving

Markets have continually evolved toward broader access and lower friction. Tokenization is the next step. The real question for 2026 is not whether markets operate 24/7 but whether your institution can adapt to it. Only those who understand the importance of regulatory clarity and prepare accordingly will be positioned at the core of this new paradigm. Failure to do so may mean missing out on this era.