BlackRock, Fidelity, other Wall Street giants back the Clarity Act

Over the past week, firms including BlackRock, Fidelity, Franklin Templeton, Goldman Sachs and SoFi have all urged Congress to pass the bill, arguing that clear rules would protect investors, give companies regulatory certainty and help the U.S. stay competitive as digital assets become more mainstream.

The wave of endorsements also highlights a growing divide within traditional finance. While asset managers and some banks have embraced the legislation, JPMorgan Chase has been at odds with Coinbase (COIN) over tighter restrictions around stablecoin yield and has backed changes sought by the banking industry, arguing that certain provisions could give stablecoin issuers an unfair advantage over traditional deposits. Coinbase and other crypto firms have countered that those efforts would weaken the legislation and slow innovation in the U.S. digital asset market.