Bitcoin Could Rally to $150K If Clarity Act Passes, Edelman Says
Financial adviser Ric Edelman argues that passage of the Clarity Act could trigger institutional adoption of Bitcoin by major Wall Street firms, potentially sending the asset to $150,000 before 2026. He cites regulatory uncertainty as the primary barrier currently preventing large brokerages and wealth managers from allocating meaningfully to crypto.
Key Takeaways
- 1## The Institutional Allocation Thesis Ric Edelman, a financial adviser, outlined a scenario in which Bitcoin could reach $150,000 before the end of 2026 if the Clarity Act passes and triggers institutional capital flows.
- 2His argument rests on the scale of potential inflows: Morgan Stanley alone manages roughly $7 trillion in client assets, and a shift of just 3% into Bitcoin would represent significant capital entering the market.
- 3Edelman made the case during a recent appearance on the Milk Road podcast, suggesting that traditional finance firms have avoided crypto not due to lack of interest but because of regulatory hesitation.
- 4## Current Positioning and the Clarity Act Trigger Morgan Stanley has already instructed its advisers to begin adding small crypto positions to client portfolios, according to Edelman.
- 5He said other major Wall Street firms are monitoring regulatory developments closely, waiting for a clear legal framework before committing capital.
The Institutional Allocation Thesis
Ric Edelman, a financial adviser, outlined a scenario in which Bitcoin could reach $150,000 before the end of 2026 if the Clarity Act passes and triggers institutional capital flows. His argument rests on the scale of potential inflows: Morgan Stanley alone manages roughly $7 trillion in client assets, and a shift of just 3% into Bitcoin would represent significant capital entering the market. Edelman made the case during a recent appearance on the Milk Road podcast, suggesting that traditional finance firms have avoided crypto not due to lack of interest but because of regulatory hesitation.
Current Positioning and the Clarity Act Trigger
Morgan Stanley has already instructed its advisers to begin adding small crypto positions to client portfolios, according to Edelman. He said other major Wall Street firms are monitoring regulatory developments closely, waiting for a clear legal framework before committing capital. The Clarity Act—proposed legislation aimed at defining crypto regulatory jurisdiction—would, in his view, provide that green light and unleash a "flywheel effect" of institutional adoption.
The Feedback Loop
Edelman framed the potential rally as a self-reinforcing cycle: rising prices attract more institutional investors, whose inflows push prices higher still, pulling in additional capital. He set a longer-term target of $500,000 per Bitcoin before 2030, though that projection sits well beyond the timeframe of his near-term $150,000 forecast and rests on similar assumptions about regulatory clarity enabling sustained institutional flows.
Why It Matters
For Traders
If institutional flows do materialize post-Clarity Act, Bitcoin liquidity and volatility could shift; current price levels may not reflect potential inflow scenarios.
For Investors
Regulatory clarity remains a structural barrier to traditional finance adoption; passage of the Clarity Act could materially expand the investor base and institutional allocation ceiling.
For Builders
Wall Street integration would likely drive demand for institutional-grade custody, settlement, and compliance tooling built on or around crypto infrastructure.
