Bitcoin (CRYPTO: BTC) may need more than regulatory clarity to regain momentum, according to investment advisor Tyrone Ross Jr.—the disconnect between bearish market sentiment and accelerating institutional adoption has never been wider.

Clarity Act Won’t Be A Cure-All

Speaking on June 28 on the Schwab Network, Ross said Bitcoin’s recent weakness reflects a combination of macro and industry-specific pressures.

Elevated interest rates, capital rotating into artificial intelligence and uncertainty surrounding the CLARITY Act keeps BTC range-bound.

He added that after falling around 40% from its highs, Bitcoin is still undergoing price discovery as investors determine where it fits in the current market environment.

Ross said the industry would welcome joint guidance from the SEC and CFTC defining which digital assets are securities and which are commodities.

While regulatory clarity would benefit advisors and institutions, Ross does not expect it alone to spark the next Bitcoin rally.

However, he believes political divisions and debates over stablecoin regulation could delay meaningful legislation beyond the congressional recess.

"There’ll still be this fog over the entire crypto space until the end of the year, in my opinion," added Ross.

Institutional Adoption Vs. Investor Sentiment

Ross pointed to a growing disconnect between institutional adoption and investor sentiment.

Major financial firms including BlackRock (NYSE:BLK), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS), and Franklin Templeton have expanded their digital asset and tokenization initiatives, yet crypto prices remain under pressure.

He added that retail investors remain sidelined after repeated bear markets.

Ross believes meaningful adoption will require coordination across traditional financial infrastructure, including entities like the DTCC, before tokenized assets become mainstream.

Rather than another institutional announcement, Ross believes broader consumer adoption could become the next catalyst.

Applications such as stablecoin payments and simpler crypto onboarding may ultimately attract new users and help narrow the gap between infrastructure development and digital asset prices.

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