Wall Street Giant Fidelity Picks Side in Crypto Bill Clash

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Asset management giant Fidelity publicly backed the CLARITY Act as Senate negotiations over the crypto market structure bill entered a critical phase ahead of committee markup. It said the legislation would provide “statutory clarity” for digital asset markets and help the U.S. maintain leadership in crypto finance. Wall Street firms, crypto exchanges, and lawmakers are now openly fighting over how much control the U.S. government should have over DeFi and blockchain infrastructure.

Fidelity Joins Growing Crypto Industry Push

In an X post shared on May 13, Fidelity praised the Senate Banking Committee for advancing the legislation despite growing political tensions around the bill. As the firm’s team wrote:

“The bill provides a balanced approach and, if passed, will offer statutory clarity to digital asset markets.”

The statement arrives just after bipartisan negotiations stalled on May 13 over unresolved ethics provisions and protections tied to the Blockchain Regulatory Certainty Act (BRCA). Senators remain divided over how the legislation should treat non-custodial developers and whether stronger conflict-of-interest rules tied to the Trump family’s crypto businesses should be included.

Despite the disagreements, major crypto firms and institutional players continue rallying behind the bill. Coinbase, Ripple, a16z crypto, and several banking executives have all expressed support for the latest draft in recent days.

The updated version of the CLARITY Act spans more than 300 pages and attempts to create the first broad federal framework for digital asset markets in the United States. It includes rules tied to stablecoins, anti-money laundering standards, tokenized assets, decentralized finance (DeFi) oversight, self-custody protections, and crypto bankruptcy treatment.

Wall Street Keeps Moving Deeper Into Crypto

Fidelity’s endorsement also highlights how traditional finance firms are becoming increasingly active in the crypto policy debate as blockchain-based products move closer to mainstream adoption.

Large financial institutions have spent years asking for clearer federal rules before expanding crypto-related services for clients. The current Senate legislation is viewed by many firms as the first realistic opportunity to establish that framework at the national level.

At the same time, opposition remains strong from some banking groups and Democratic lawmakers who argue the bill could weaken oversight or create financial stability risks. Senator Elizabeth Warren has continued attacking the legislation, whereas banking lobbies have pressured senators to tighten restrictions around stablecoin rewards and DeFi provisions.

The committee markup now becomes one of the biggest crypto policy tests in Washington this year, with both Wall Street and the digital asset industry watching closely for signs of whether bipartisan support can still hold together.