Wall Street Heavyweights Back Clarity Act Amid Crypto Regulatory Uncertainty

BlackRock and Fidelity, two of the largest asset managers on Wall Street, are backing the Digital Asset Market Clarity Act. The legislation aims to establish a new regulatory framework for the US crypto industry, giving oversight to both the SEC and CFTC.

The Clarity Act would make sweeping changes to how digital assets are governed, with some banks and asset managers worried it will take business away from them. JPMorgan Chase has been a notable critic of the bill, saying it doesn't want crypto to offer yields similar to interest on savings accounts.

However, other leading Wall Street firms have thrown their support behind the Clarity Act, arguing that clear rules will protect investors. These firms include BlackRock, Fidelity, Franklin Templeton, Goldman Sachs, and SoFi.