Templeton Joins Wall Street Giants Backing CLARITY Act Amid Regulatory Uncertainty

Franklin Templeton has added its support to the CLARITY Act, which aims to bring regulatory clarity to the US crypto market structure. The company, which manages USD 1.79 trillion in assets, joins BlackRock, Fidelity, Goldman Sachs, and Charles Schwab in backing the bill.

The proposed legislation would allocate tokens between the SEC (securities) and CFTC (commodities), providing investors with clear protections and companies with regulatory clarity. Franklin Templeton has stated that this legislation will create 'regulatory clarity in terms of digital assets' via X, saying it will allow investors to know what protections are available and provide companies with clarity on regulatory requirements.

The bill needs 60 Senate votes to pass before the August recess, but faces a low 30% chance of passage, according to Galaxy Research. Despite strong industry support, some Democratic senators have not made a decision in favor of the bill, while Republicans have amended it to include temporary restrictions on crypto earnings for certain federal officials.