Fidelity has publicly endorsed the latest Senate effort to pass the Clarity Act, giving the crypto market structure bill backing from one of the largest asset managers in the United States.
The Boston-based firm, which manages about $7 trillion in assets, said Friday through its public policy account on X that it is urging the Senate to pass the legislation. In its statement, Fidelity said, "The time is now for clear rules of the road that are essential to strengthening investor confidence, providing certainty for market participants, and reinforcing U.S. leadership in global digital asset markets."
New Senate draft adds restrictions on officials and family members
Lawmakers have been working on the crypto market structure bill since last year. A revised draft circulating in the Senate this week would ban officials and their families from issuing or promoting crypto, a provision tied to one of the main objections raised by opposition politicians.
Fidelity was one of several groups and institutions that backed the bill on Friday. Others named in the report were the Crypto Council for Innovation, the Blockchain Association, the Digital Chamber, the National Fraternal Order of Police, and other politicians.
Why the bill matters to Fidelity
Fidelity has a direct interest in the legislation because it manages Bitcoin and other digital asset exchange-traded funds. Those products give U.S. investors exposure to crypto through shares traded on stock exchanges.
The U.S. Securities and Exchange Commission approved a number of spot BTC ETFs in 2024. According to the report, those funds have since become some of the most successful ETF launches ever.
Bill remains stuck after earlier progress
Republicans passed the Clarity Act last year, but the measure has remained in deadlock. The report said the main obstacle has been concerns from banking leaders over stablecoins and the yield they could potentially pay to customers.
Coinbase dropped its support for the bill in January after clashing with banking executives, who argued that earning yield on stablecoins should be banned. U.S. banks have said they could lose customers if crypto exchanges such as Coinbase offer more attractive products to their deposit base.
Warren raises concerns as latest draft adds guardrails
Some lawmakers have continued to object to the bill. Democratic Senator Elizabeth Warren said President Donald Trump's family has unfairly benefited from crypto ventures.
Warren argued this week that the Clarity Act could also be used by Trump to cash in on crypto. The latest draft, however, includes language that would prohibit officials and their families from issuing or promoting crypto.
The report was first published by Bitcoin Magazine and written by Mathew Di Salvo.