Congress can take years to decide how an emerging market should fit within existing law.
Investors do not always wait.
That tension is becoming increasingly visible in crypto. While lawmakers continue debating the rules that could govern the digital asset market, new research suggests many crypto owners are already treating the asset differently than its early reputation might suggest.
Not necessarily as a replacement for conventional finance.
Not necessarily as a short-term trade.
But as one holding alongside retirement accounts, stocks, savings and other familiar financial tools.
Does that mean crypto investors are moving faster than Congress?
The CLARITY Act has progressed – but not to the finish line
The Digital Asset Market Clarity Act is intended to establish a federal market-structure framework for digital assets, including clearer divisions of responsibility among financial regulators. To finally answer all those “gray area” questions that the SEC, the CFTC, the OCC and the Treasury Department have been asking for the last 10 years.
First, the good news… To date, the legislation has made meaningful progress. The House passed its version in July 2025 by a bipartisan vote of 294–134. In May 2026, the Senate Banking Committee advanced its version by a 15-9 vote, and lawmakers released additional revised language the following month
But progress is not the same as passage.
Now the bad news: As of this writing, the legislation has not reached the Senate floor, and its immediate timetable remains uncertain. Even if the Senate passes a bill, differences between the House and Senate versions would still need to be resolved before legislation could reach the president.
So, the real update is not that the CLARITY Act has moved substantially closer to becoming law. It simply hasn’t yet crossed the finish line.
White that story is still unfolding, another development outside the Capitol Building has caught my attention.
Today’s crypto investors explain they see digital assets as an alternative to the conventional financial system. In other words, they see crypto as both a valid asset – and a valid alternative to its competitor.
We’ve come a long way, haven’t we?
From outsider asset to one holding among many
Crypto’s early public image was shaped in large part by two narratives.
One was ideological. Some early adopters saw cryptocurrency as an alternative to banks, governments and centralized financial institutions.
The other was speculative. Crypto’s dramatic price movements attracted people hoping to profit from rapid buying and selling.
To be sure, elements of both remain (even more so in the memecoin space). But a new Urban Institute survey suggests they may no longer describe how many current owners use crypto.
Urban surveyed 3,194 US adults in January 2026 about their experiences with crypto and other financial products. Approximately 279 respondents were current crypto owners, so the findings are a relatively small, self-reported group – not a definitive description of every crypto investor.
Even with that limitation, the results are revealing. Among current crypto owners:
- 60% said they had used crypto as a long-term investment strategy during the previous year.
- 27% said they had used it as a short-term strategy.
- 45% identified portfolio diversification as a primary reason for owning it.
- Only 2% cited distrust of banks as a reason for ownership.
Their other financial habits are just as significant.
Two-thirds reported having retirement accounts. Another 45% owned individual stocks, while most (87%) had checking accounts.
In other words, they weren’t using crypto to abandon conventional finance. They were holding it alongside conventional accounts and investments.
That is a meaningful contrast with crypto’s old outsider image.
It may also be an example of how investor behavior is evolving before lawmakers finish writing the rules.
What the survey does – and does not – tell us
The Urban Institute findings support a narrow conclusion:
Many current crypto owners say they use digital assets as one part of a broader financial life.
That’s not to say they’ve necessarily built what I’d call an appropriately diversified portfolio. We can’t determine for sure whether their allocations to crypto are appropriate for their level of risk tolerance, time horizon and so on.
What we do know with certainty – they explained their motivation for owning cryptocurrenc was “portfolio diversification.”
Now, I don’t think this means crypto has stopped being speculative. The survey includes responses that validate my claim: More than one-quarter of current owners reported using crypto as a “short-term strategy.” To me, that reads like “day trading.” A few respondents described their purchases as an experiment or a “gold rush moment,” both of which read to me as “pure speculation.” FINRA tells us that crypto assets are often extremely volatile, may be less liquid than traditional investments and carry a significant risk of loss.
So, is crypto becoming a more conventional asset even before Congress settles the rules?
Yes, that’s exactly my conclusion. The evidence suggests that many investors are already choosing crypto as a diversifying asset in the context of traditional financial assets.
I want to be very clear here: More conventional does not mean less risky. It does not mean suitable for everyone. It’s no substitute for the regulatory clarity Congress is still debating.
But it’s a trend that’s been building, and growing, for a long time now. And it’s growing stronger.
Crypto’s role as an asset is changing – the choice remains personal
The CLARITY Act and the Urban Institute survey measure two different kinds of change.
One is legal and institutional: Congress is deciding how crypto should operate within the U.S. financial system.
The other is behavioral: Many current investors say they’ve already incorporated crypto into otherwise conventional financial lives.
That’s a decision they came to on their own. It doesn’t mean crypto is right for you and your retirement strategy. Those questions depend on personal objectives, time horizon, risk tolerance and broader financial circumstances.
But the survey does tell us something important about crypto’s evolution as a financial asset, and the role crypto can pay in a diversified portfolio.
I don’t think the future of money will be defined by ideological rebellion or short-term speculation. For many owners, crypto is already being evaluated in the same context as other financial decisions: As one possible component of a much larger picture.
That brings us to a question: When it comes to your financial future, should you be waiting? Or should you be taking action right now?
To learn how digital assets can be owned in a tax-advantaged retirement account – and the questions to ask before making a decision – download your free Crypto IRA Guide. If you’ve done your due diligence and are ready to get started, you can open a Digital IRA with BitIRA online (anytime, day or night) in a few minutes.
