Wall Street Giants Back CLARITY Act as Senate Delays Crypto Framework
BlackRock, Fidelity, Goldman Sachs and peers endorse federal regulatory framework while legislative odds slip to multi-month lows.
A coalition of Wall Street's largest asset managers has formally endorsed the Digital Asset Market Clarity Act, backing legislation that would replace the SEC's enforcement-led approach with a statutory regulatory framework.
BlackRock, Fidelity, Goldman Sachs, Charles Schwab, Grayscale and Franklin Templeton are among the signatories, representing tens of trillions in combined assets under management. BlackRock alone manages approximately $15.3 trillion, with Fidelity holding roughly $7 trillion in discretionary AUM.
Breaking the Jurisdictional Deadlock
The CLARITY Act would establish clear boundaries between digital assets classified as securities under SEC jurisdiction and those treated as commodities under CFTC oversight. The legislation includes a decentralization standard to determine which regime applies to specific tokens.
For years, U.S. cryptocurrency markets have operated under what industry participants call "regulation by enforcement," with the SEC and CFTC frequently disputing jurisdictional authority. Spot Bitcoin ETFs received approval in early 2024, but comprehensive federal legislation has remained elusive despite growing institutional participation.
Legislative Headwinds
The Senate postponed consideration of the bill in July 2026 to prioritize Russian sanctions and federal nominations, according to CoinDesk. The delay has dampened market confidence in near-term passage.
Prediction market Polymarket shows odds for the Act's enactment in 2026 have fallen from highs between 70-85% earlier this year to approximately 35-48% by late July, reflecting growing skepticism about the legislative timeline.
The Stakes for U.S. Financial Leadership
Industry analysts suggest passage could unlock significant institutional capital inflows and accelerate the tokenization of traditional financial assets, from bonds to real estate. The coalition's backing indicates that firms managing substantial portions of global wealth are prepared to expand crypto exposure once regulatory ground rules are codified in statute rather than enforced through litigation.
If enacted, the Act would provide token issuers and asset managers a clear legal pathway to operate without the threat of retroactive SEC enforcement actions.