America's Great Financial Upgrade

The US Government's Systematic Migration of Wall Street to Blockchain

Important: Please review the disclaimer at the end of this update.

Written Mid January 2026

The Hundred-Year Shift

We are living through the largest financial infrastructure upgrade in a century.

The last transformation of this magnitude occurred in the 1920s and 1930s, when the United States built the regulatory and institutional architecture that would define modern finance: the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the separation of commercial and investment banking. That infrastructure has remained largely intact for nearly a hundred years.

Now it is being rebuilt.

Right now, when you buy a stock, it takes two business days to settle. Your broker talks to their clearing firm, who talks to the depository, who updates their records, which eventually reconcile with everyone else's. Multiple ledgers. Multiple intermediaries. Multiple days. Blockchain settlement is a single ledger. One source of truth. The trade settles when it executes, not two days later. Fewer intermediaries. Less risk. Lower cost.

Think about what happened when the world moved from paper mail to email. The content is the same but the infrastructure for moving it became instant, direct, and verifiable. That is what is happening to finance. The pipes are being replaced while the water keeps flowing.

The US government is systematically migrating Wall Street onto blockchain settlement. Not experimenting with it. Not studying it. Migrating to it. The legislation has passed. The bank charters have been granted. Tokenization has been approved. Ethereum has been classified as institutional infrastructure. The rails are being laid.

What follows is an update on where we are and why a procedural delay around The CLARITY Act only strengthens the trajectory.

The Foundation Already Built

Before examining what happened on January 15th, it is worth understanding what has already been accomplished.

We covered the full regulatory transformation in our December publication, The Ethereum Inflection Point, and provided an updated summary in our recent January piece, Ethereum's Institutional Trajectory. For readers who want the complete timeline and source documentation, those analyses remain the definitive reference.

Here is the short version:

The GENIUS Act established federal oversight for dollar-backed stablecoins, the plumbing through which tokenized assets will flow.

The CLARITY Act formally classifies Ethereum as a commodity under CFTC jurisdiction, resolving the regulatory ambiguity that kept institutional capital on the sidelines.

The Commodity Futures Trading Commission (CFTC) has approved Ethereum as collateral in derivatives markets, transforming it from a crypto asset into a recognized financial instrument.

The Securities and Exchange Commission (SEC) has greenlit tokenization of US equities and Treasury securities on blockchain infrastructure.

The Office of the Comptroller of the Currency (OCC) has granted national trust bank charters to Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos, allowing them to operate as federally regulated financial institutions.

The regulatory architecture for blockchain-based financial infrastructure is not theoretical. It exists. What remains is the Senate's passage of market structure legislation, the CLARITY Act, which codifies what is already happening in practice.

What Happened This Week (January 15th)

On Wednesday evening, the Senate Banking Committee postponed its scheduled markup of the CLARITY Act.

The catalyst was Coinbase CEO Brian Armstrong, who withdrew his support at the eleventh hour. In a post on X, Armstrong argued the bill had "too many issues" and declared that Coinbase would "rather have no bill than a bad bill."

Within hours, the industry's major players publicly reaffirmed their commitment to moving forward. a16z, Circle, Paradigm, Kraken, Ripple, Coin Center, and the Digital Chamber all issued statements supporting the markup despite sharing some of Armstrong's concerns about specific provisions.

Kraken co-CEO Arjun Sethi captured the consensus: "It is easy to walk away when a process gets difficult. What is hard and what actually matters is continuing to show up, working through disagreements, and building consensus in a system designed to require it."

Armstrong found himself isolated. The coalition held. Chairman Tim Scott confirmed all parties remain at the table working in good faith. Armstrong has since softened his position.

Why This Delay Is the Best News

The postponement is not a setback. It is the legislative process doing what it is designed to do: improving the product before passage.

The original bill was workable. Institutions would have accepted it. But workable is not optimal. The revised version will emerge stronger. More time for a more robust framework benefits everyone positioned for the long game.

If the government were not serious about this migration, we would be reading reports of delays until 2027. We are not. We are reading about a potential 30-60 day window for refinement. The trajectory has not changed. The timeline has shifted slightly. For those already positioned, this is a feature, not a bug.

The Market's Verdict

If this interpretation were wrong, we would see it in price.

Bitcoin and Ethereum did not crash on the postponement news. There was no panic selling. No flight to safety. The market absorbed the information and held steady.

But more than held steady. Bitcoin broke its December high, a development that proved the four-year cycle bears wrong a notable signal tracked by our research partner, SwissBlock's Henrik Zeberg. The Crypto Fear & Greed Index flipped to "greed" for the first time since November. Algorithm signals from our research partners shifted risk-on as of January 14th.

And institutional buyers continued accumulating. Bitmine Immersion Technologies (BMNR), the worlds leading Ethereum treasury added $75 million in Ethereum purchases last week alone.

Markets are efficient. If the Clarity Act postponement represented genuine risk to the thesis, the price would reflect it. It does not. The market is telling us what we already know: this is a procedural delay in an inevitable process.

The Tailwind Nobody Feels Yet

There is a broader context that strengthens the near-term outlook.

The Treasury, SEC, CFTC, and administration are aligned on monetary and regulatory policy through the 2026 midterm elections. The political incentive structure favors continued momentum in risk assets. This is not speculation, it is the observable coordination of policy toward what institutions call "running the economy hot."

The Federal Reserve's ending of Quantitative Tightening (QT) and has turned the printing press on through the RMP program and will support liquidity conditions. Mortgage payment deferrals and student loan flexibility remain tools in the policy arsenal. The administration understands the electoral map. The House of Representatives is at stake. There is no political appetite for contraction before November.

This does not mean there are no risks on the horizon. It means the risks do not feel immediate. The window for favorable conditions extends through the midterms, providing a runway for the infrastructure migration to mature.

The Position

The United States government is systematically migrating Wall Street onto blockchain settlement. The legislation is advancing. The bank charters are granted. Tokenization is approved. Ethereum has been classified as institutional infrastructure.

One voice broke from the coalition on January 15th. The coalition held. The bill will improve. The timeline shifts slightly; the trajectory does not.

The largest financial infrastructure upgrade in a hundred years does not pause for one dissenting voice. It absorbs the feedback, refines the framework, and continues building.

More to come soon.

Disclaimer: This document represents the views and analysis of Patriot Advisory Group and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any security or asset. Cryptocurrency and digital asset investments carry significant risks, including the potential for complete loss of principal. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with qualified financial, legal, and tax advisors before making any investment decisions.

Sources and Citations

Legislative Developments

1. Congress.gov, "H.R.3633 - Digital Asset Market Clarity Act of 2025," 119th Congress. https://www.congress.gov/bill/119th-congress/house-bill/3633
2. Congress.gov, "S.1582 - GENIUS Act," 119th Congress. https://www.congress.gov/bill/119th-congress/senate-bill/1582
3. Eleanor Terrett, "Crypto Market Structure Markup Postponed by Senate Banking Committee," Crypto in America, January 15, 2026. https://www.cryptoinamerica.com/p/crypto-market-structure-markup-postponed

Regulatory Approvals

4. CFTC Press Release 9146-25, "Acting Chairman Pham Announces Digital Assets Pilot Program," December 8, 2025. https://www.cftc.gov/PressRoom/PressReleases/9146-25
5. Bloomberg Law, "SEC Gives DTCC OK to Tokenize Stocks in Move to Blockchain," December 11, 2025. https://news.bloomberglaw.com/crypto/sec-gives-dtcc-ok-to-tokenize-stocks-in-move-to-blockchain
6. DTCC Official Press Release, "Paving the Way to Tokenized DTC-Custodied Assets," December 11, 2025. https://www.dtcc.com/news/2025/december/11/paving-the-way-to-tokenized-dtc-custodied-assets
7. Banking Dive, "OCC Approves National Trust Bank Charters for Circle, Paxos, Ripple, BitGo, and Fidelity," December 12, 2025. https://www.bankingdive.com/news/occ-national-trust-bank-charter-approve-circle-paxos-ripple-bitgo-gould-crypto/807799/

Industry Response

8. Brian Armstrong (@brian_armstrong), X post, January 15, 2026. https://x.com/brian_armstrong/status/2011545247105355865
9. Arjun Sethi (@arjunsethi), X post, January 15, 2026. https://x.com/arjunsethi/status/2011579807272759639
10. Senator Tim Scott (@SenatorTimScott), X post, January 15, 2026. https://x.com/SenatorTimScott/status/2011629977217728952