Wall Street Expected To Keep Expanding Into Crypto Regardless Of Clarity Act Outcome

Financial firms are unlikely to slow their push into digital assets even if the Clarity Act fails to pass the Senate on Tuesday, according to industry analysts and lawyers tracking the bill.

What The Bill Would Offer Wall Street

The Digital Asset Market Clarity Act could give banks, brokers and asset managers clearer rules for trading digital assets and building crypto products. A digital-assets lawyer at Fenwick said the bill would help define which assets count as commodities versus securities, making internal compliance far simpler for firms already active in the space. However, he noted passage isn’t a requirement for continued growth, since traditional finance has already moved into crypto through ETFs and tokenization despite years of regulatory uncertainty.

Failure Could Actually Speed Up Activity

An analyst at Siebert Financial argued that if the bill fails, firms may have added incentive to launch products and tokenization efforts sooner, while the current favorable environment holds, rather than wait for future political or regulatory shifts. Regulators including the SEC and CFTC are also moving ahead with their own digital asset rules independent of Congress. Robinhood said it continues backing the legislation and is encouraging bipartisan support ahead of the vote.

Political Hurdles Remain

The bill needs significant Democratic support to clear the Senate’s 60-vote threshold. An ethics provision limiting the president and senior officials from crypto business dealings had been a major sticking point, though most of that language was reportedly agreed to in the latest draft. Disputes also continue over how stablecoin rewards should be regulated, with banking groups renewing pressure for tighter restrictions this week.