Regulation, Stablecoins May Reshape Crypto in 2026

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After a year of unexpected turbulence for crypto markets, 2026 could mark a turning point driven by regulatory clarity, accelerating stablecoin adoption and an improving macroeconomic backdrop, according to a new outlook from Coinbase Institutional.

In its 70-page report, Coinbase Institutional said digital assets have evolved “from a niche market to an emerging pillar of global market infrastructure,” even as price volatility and uneven liquidity defined much of 2025.

Looking ahead, Coinbase’s institutional arm expects clearer global regulatory frameworks to provide stronger policy guardrails, supporting innovation and long-term market maturation.

Rather than another retail-driven boom-and-bust cycle, 2026 is framed as a year of institutional integration and regulatory maturity, with clearer rules enabling deeper participation from traditional financial players.

In the United States, Coinbase Institutional pointed to landmark policy developments, including progress on stablecoin legislation such as the GENIUS Act and momentum toward a broader crypto market structure bill, as key factors shaping the next phase of adoption.

These efforts are expected to influence everything from risk management and compliance standards to institutional portfolio strategies.

*Coinbase Institutional flags the evolution of US crypto policy as a key driver of a potentially transformative 2026. Source: Coinbase Institutional*

Stablecoins remain one of crypto’s most established use cases, with Coinbase Institutional projecting significant expansion in the years ahead. Its model forecasts that the stablecoin market could grow to about $1.2 trillion by 2028, driven by increased use in payments, settlement, payroll and cross-border remittances.

*After years of rapid expansion, Coinbase Institutional’s model forecasts that the stablecoin market could reach $1.2 trillion by 2028. Source: Coinbase Institutional*

Still, the outlook stops short of outright optimism. Coinbase Institutional described its macroeconomic expectations as “cautiously optimistic,” arguing that while economic growth may remain uneven, the US economy has shown greater resilience than recent data implies.

Persistent inflation risks and the timing of potential interest rate cuts remain key variables that could influence crypto market recovery heading into 2026.

Bitcoin’s volatility profile is shifting

One of Coinbase Institutional’s key observations is that Bitcoin’s volatility profile has gradually evolved. Rather than standing out as an extreme outlier among major asset classes, Bitcoin’s volatility now resembles that of high-growth technology stocks, the report said.

Coinbase pointed to Bitcoin’s (BTC) 90-day historical volatility, which declined to about 35% to 40% by the end of 2025, down from levels above 60% in mid-2024. The moderation occurred even as the market absorbed major structural changes, including the approval and rollout of spot Bitcoin exchange-traded funds.

*Bitcoin’s volatility profile is now comparable to major technology stocks. Source: Coinbase Institutional*

Still, 2025 proved to be a volatile and emotionally charged year for Bitcoin holders. The asset experienced sharp price swings, reaching new cycle highs before undergoing a steep correction later in the year amid elevated leverage and forced liquidations across crypto markets.

While such moves have renewed debate around Bitcoin’s role as a safe-haven asset, Coinbase Institutional said that 2025 ultimately marked a milestone year. The report described Bitcoin as having been “firmly established as a critical component of the global financial conversation,” even as it remains subject to the growing pains of a maturing asset class.