On July 24, Fidelity, managing assets worth $7.1 trillion, publicly urged the Senate to pass the updated Crypto Clarity Act. The Boston-based investment giant’s endorsement came through its public policy channel on X, signaling strong support for clearer crypto regulations in the US.
Backing from Major Groups and Key Changes
The revised bill, circulating among senators this week, includes a new clause that prohibits government officials and their families from issuing or promoting cryptocurrencies, addressing prior political concerns. Fidelity emphasized that establishing clear rules is key to boosting investor confidence and maintaining America’s leadership in digital assets.
Alongside Fidelity, influential crypto advocacy organizations like the Crypto Council for Innovation, Blockchain Association, and Digital Chamber, as well as the National Fraternal Order of Police, have voiced their support for the act. Fidelity’s interest lies partly in its management of Bitcoin and digital asset ETFs, products that allow US investors to gain crypto exposure via traditional stock markets.
The US Securities and Exchange Commission (SEC) greenlit several spot Bitcoin ETFs in 2024; these have performed exceptionally well, underscoring growing investor appetite.
The Clarity Act initially passed the House last year but has been stalled in the Senate, mainly due to banking sector concerns about stablecoins and potential yields paid to customers. Coinbase withdrew its backing earlier in the year after conflicts with banking leaders who opposed yield-generating stablecoin products, fearing customer losses to crypto exchanges.
Senator Elizabeth Warren has criticized the bill, citing concerns that former President Trump’s family might benefit disproportionately from crypto ventures. However, the latest draft’s restriction on officials and their families aims to mitigate such conflicts.
