Five Wall Street giants back Senate's Digital Asset Market Clarity Act
In brief
- Five major Wall Street firms—BlackRock, Fidelity, Goldman Sachs, Franklin Templeton, SoFi—endorse Digital Asset Market Clarity Act
- Bill establishes unified regulatory framework; reshapes SEC and CFTC crypto oversight
- Senate faces August 8 recess deadline with limited legislative days remaining
- Ethics restrictions for senior government officials remain key sticking point in negotiations
Wall Street's unified endorsement
Over the past week, five major firms have endorsed the bill, marking a rare alignment among traditional finance and fintech players on crypto regulation. The bill would establish a new regulatory framework for the U.S. crypto industry and make sweeping changes to how the SEC and CFTC oversee the sector.
Samara Cohen, BlackRock's senior managing director and global head of market development, framed the endorsement in terms of investor protection. "It would help the United States shape the next era of market structure, while preserving the transparency, resilience and investor protections that have made U.S. capital markets the global benchmark," Cohen said in a statement.
Goldman Sachs CEO David Solomon called the bill a path to market stability. "I'm very supportive of moving the CLARITY Act forward, so we can get some market structure in place and start to move the innovation process along," Solomon said.
SoFi CEO Anthony Noto welcomed Goldman Sachs' support and emphasized the competitive stakes. "Durable rules for digital assets are critical for U.S. global competitiveness. It protects consumers and lets us build safely under homegrown regulation. Congress should pass it immediately," Noto said on social media.
The endorsements highlight a shift. JPMorgan Chase has backed changes sought by the banking industry and has been at odds with Coinbase over tighter restrictions around stablecoin yield, showing the sector isn't monolithic on regulatory approach.
Negotiations race the clock
Senate negotiators recently unveiled updated legislative text that merges House and Senate proposals. The revision addresses one of the most contentious issues: ethics restrictions for senior government officials involved with crypto.
Ethics restrictions have become one of the biggest sticking points in negotiations. Lawmakers continue to debate whether proposed safeguards strike the right balance between transparency and feasibility.
Time is running short. Majority Leader John Thune has shifted the Senate's focus to judicial nominations and a Russia sanctions package, leaving the Clarity Act waiting for floor time. The Senate is scheduled to begin its summer recess on August 8, leaving only a handful of legislative days to move the bill.
Fidelity said the legislation would provide clear rules of the road needed to strengthen investor confidence and provide certainty for market participants. The endorsements from major asset managers and banks suggest momentum exists among institutional players, though the legislative calendar remains the real constraint.
