Fidelity Urges Senate to Pass Crypto Clarity Act as Industry Support Grows

Fidelity on Friday urged the U.S. Senate to pass the proposed ‘Clarity Act,’ adding fresh momentum to a growing coalition of major financial firms and crypto advocacy groups pushing for a comprehensive overhaul of America’s digital asset market structure.

In a post from its public policy account on X on July 25, Fidelity—an asset manager overseeing roughly $7 trillion—argued that the U.S. needs ‘clear rules’ now to strengthen investor confidence, provide certainty for market participants, and reinforce America’s leadership in the global crypto economy. The call comes as lawmakers continue to refine long-debated legislation designed to clarify how cryptocurrencies, trading venues, and related financial products should be regulated.

The latest circulated Senate draft includes language that would prohibit public officials and their immediate family members from issuing or promoting cryptocurrencies—an issue that has been a major sticking point for opposition lawmakers. The provision is widely seen as an attempt to address concerns that political figures could leverage their positions to influence markets or profit from token-related ventures.

Fidelity was joined in its support by several prominent industry groups, including the Crypto Council for Innovation, the Blockchain Association, and the Digital Chamber, which have framed the Clarity Act as essential to bringing the U.S. framework closer to the regulatory predictability seen in other major jurisdictions. The Fraternal Order of Police and some politicians also voiced support, underscoring the unusually broad range of stakeholders now weighing in on digital asset policy.

Fidelity’s interest is not merely political. The firm has expanded its footprint in regulated crypto investment products, including cryptocurrency exchange-traded funds (ETFs) that allow U.S. investors to gain exposure through shares listed on traditional securities exchanges. After the U.S. Securities and Exchange Commission approved multiple spot Bitcoin (BTC) ETFs in 2024, the category quickly became one of the most successful ETF launches on record, pulling in substantial ‘liquidity inflow’ and accelerating institutional participation through familiar market infrastructure.

Even so, the Clarity Act’s path has been uneven. Republicans previously advanced the bill last year, but progress later stalled amid pushback from banking executives, who raised concerns about stablecoins and the yields those products could offer consumers. Some banks have argued that if crypto platforms are allowed to offer stablecoin-based returns, they could siphon away deposit customers by providing more attractive alternatives to traditional accounts.

The dispute has already reshaped industry positioning. Coinbase ($COIN) reportedly clashed with banking figures over proposals to prohibit yield payments on stablecoins, and the exchange later withdrew its earlier backing of the legislation in January. The episode highlighted a central tension in U.S. policy debates: whether stablecoins should behave more like payment instruments with strict constraints, or evolve into yield-bearing products that compete more directly with legacy banking.

Democratic Sen. Elizabeth Warren has also criticized the bill’s trajectory, arguing this week that the Clarity Act could further enable President Trump’s family to monetize crypto-related activity. The newest draft, however, explicitly seeks to curb political involvement by banning public officials and their families from issuing or promoting cryptocurrencies—language that backers describe as a safeguard intended to reduce conflicts of interest.

If the Senate advances the Clarity Act, the legislation could become a defining benchmark for U.S. ‘market structure’ in crypto—potentially shaping how tokens are classified, how platforms operate, and how regulated investment vehicles such as ETFs scale in the world’s largest capital market. The outcome will also signal whether Washington can align competing interests across crypto firms, banks, and institutional investors at a time when regulatory clarity is increasingly seen as a prerequisite for broader adoption.