Wall Street Giants Back Senate’s Crypto CLARITY Act

Support for the Senate's Digital Asset Market Clarity Act has expanded beyond the crypto industry, with some of the world's largest asset managers now publicly backing legislation they view as essential for bringing digital assets into mainstream finance.

Summary:

Asset managers overseeing more than $30 trillion have lined up behind the Senate’s CLARITY Act.
Franklin Templeton has become the latest major financial institution to endorse the legislation.
Support reflects growing demand for clear federal rules governing digital assets and tokenization.
The Senate is racing to advance the bill before the August recess.

Together, the firms endorsing the bill oversee more than $30 trillion in client assets, underscoring how regulatory clarity has become a priority for traditional financial institutions rather than just cryptocurrency companies.

Wall Street’s Biggest Asset Managers Unite Behind the Bill

The latest institution to join the coalition is Franklin Templeton, which manages approximately $1.79 trillion in assets.

Franklin Templeton supports passage of the CLARITY Act.

The bill would make clear how crypto is regulated. Investors would know what protections apply. Firms would know which regulators they answer to.

It’s time to provide the industry the clarity it needs.

— Franklin Templeton (@FranklnTempletn) July 27, 2026

Its endorsement places the firm alongside BlackRock, Fidelity Investments, Charles Schwab and Goldman Sachs, creating one of the largest coordinated shows of support yet for U.S. digital asset legislation.

Collectively, these firms manage more than $30 trillion in assets across investment funds, retirement products and institutional portfolios. While each has pursued digital assets differently – from spot Bitcoin exchange-traded funds and tokenized money market funds to crypto trading infrastructure – they now share a common objective: establishing a consistent federal regulatory framework.

For traditional finance, the issue extends beyond cryptocurrencies themselves. Banks and asset managers have increasingly expanded into tokenized funds, blockchain-based settlement and digital custody, making regulatory uncertainty a growing business concern rather than a niche compliance issue.

Why Traditional Finance Is Pushing for Regulatory Clarity

Unlike previous crypto legislation, the CLARITY Act has attracted broad support from institutions that have historically taken measured approaches to digital assets.

The firms backing the proposal argue that clearly defining which assets fall under the jurisdiction of the Securities and Exchange Commission (SEC) and which belong under the Commodity Futures Trading Commission (CFTC) would reduce legal uncertainty for investors, exchanges and financial institutions alike.

Supporters also point to the bill’s consumer protection measures, Anti-Money Laundering (AML) requirements and market oversight provisions as important safeguards that could make institutional participation more predictable.

For asset managers developing tokenized investment products, the legislation could provide clearer rules governing issuance, trading and secondary-market activity, reducing compliance risks that have slowed broader adoption.

Senate Revises the Proposal Ahead of a Critical Deadline

Momentum behind the legislation comes as Senate lawmakers attempt to advance the bill before the August recess.

An updated draft released by Senate Banking Digital Assets Subcommittee Chair Cynthia Lummis merges proposals developed by the Senate Banking and Agriculture Committees into a single framework designed to clarify federal oversight of digital assets.

The revised text also introduces a stricter ethics provision that would prohibit federal officials – including the President – from issuing or sponsoring digital assets for personal financial gain. The amendment was added as lawmakers sought to preserve bipartisan support and keep negotiations moving toward a Senate floor vote.

Lummis said Democratic lawmakers contributed substantially to the latest version, resulting in stronger consumer protections and additional regulatory safeguards.

Industry Sees the Bill as a Turning Point

The growing backing from Wall Street has been matched by support across much of the digital asset industry.

Coinbase Chief Executive Brian Armstrong described the updated legislation as the product of extensive bipartisan negotiations, saying it provides stronger consumer protections while establishing a workable regulatory framework for digital assets in the United States.

Both parties have spent thousands of hours getting Clarity to the 1-yard line.

The bill has strong consumer protections, and gives law enforcement tools to crack down on bad actors.

No more delays – crypto needs clarity. Time to vote! pic.twitter.com/KCm2EgFb8x

— Brian Armstrong (@brian_armstrong) July 27, 2026

Even with broad industry support, however, the legislation faces a narrow legislative window. Senate leaders have temporarily prioritized other business ahead of the August recess, leaving limited time for floor consideration.

For many financial institutions, the outcome has implications well beyond cryptocurrency markets. Passage of the CLARITY Act would provide the legal certainty many firms have sought before expanding tokenization initiatives, blockchain-based financial products and broader digital asset services, making the legislation one of the most closely watched regulatory proposals by both Wall Street and the crypto industry.

The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.