CLARITY Act Gains Bank Support Before Senate Vote

The CLARITY Act has gained public support from major financial institutions including Goldman Sachs, Citi, BNY Mellon, Fidelity and BlackRock. Coinbase CEO Brian Armstrong says the bill would create clearer digital asset classifications, define the roles of the SEC and CFTC, and allow banks to expand blockchain-based services. Armstrong argues that opposition is concentrated among a smaller group of banks seeking to restrict competition from crypto firms. He cited Ripple’s difficulties in pursuing a banking charter and criticised protectionist policies. Earlier, he also pointed to regulatory changes under the Trump administration, including the appointments of SEC Chair Paul Atkins and CFTC Chair Mike Selig and passage of the GENIUS Act for stablecoins. The CLARITY Act passed the Senate Banking Committee in May. A procedural Senate vote is scheduled for 15 September, after Majority Leader John Thune filed for cloture before the August recess. The bill needs 60 votes to advance, requiring support from at least seven Democrats or independents if all 53 Republicans back it. Unresolved issues include ethics rules, anti-money-laundering provisions and whether crypto platforms may offer rewards on stablecoin holdings. For crypto traders, the CLARITY Act could reduce regulatory uncertainty and support wider institutional participation if it advances. However, banking opposition and the need for bipartisan support make the outcome uncertain. Short-term market reaction is therefore likely to depend on Senate signals rather than the bill’s long-term potential.