Franklin Templeton Joins Wall Street Support for CLARITY Act as Senate Vote Deadline Nears

• Franklin Templeton supported the CLARITY Act prior to an important vote in the Senate.
• The bill is required to garner bipartisan support within the Senate prior to the start of the August recess in Congress.

Institutional support for cryptocurrencies is continuing to grow as lawmakers find themselves with less and less time to pass legislation on digital assets. Franklin Templeton, which manages about USD 1.79 trillion in assets, has now added its endorsement to the CLARITY Act, another financial institution supporting the framework of US crypto market structure.

Franklin Templeton has stated this via X, saying that the legislation will create regulatory clarity in terms of digital assets. According to Franklin Templeton, the legislation would allow investors to know what protections were available, while also providing companies with clarity in regard to regulatory requirements.

Wall Street Aligns Around Regulatory Structure

Franklin Templeton is one of the companies joining BlackRock, Fidelity, Goldman Sachs, and Charles Schwab to back the CLARITY Act. Combined, these organizations have over USD 30 trillion worth of managed assets, which shows a high level of institutional support for more regulatory clarity around cryptocurrencies. The proposed legislation will allocate different forms of regulation to two commissions–the SEC and CFTC. 

According to the Act, the SEC should be responsible for digital assets categorized as securities, and the CFTC will be regulating commodities in tokens. The main goal of the proposal is to bring legal clarity to replace several years of uncertainty on the matter. The company has made numerous developments in blockchain technology and tokenization over recent years.

Senate Vote Becomes Biggest Challenge for the Legislation

Despite strong industry support for the CLARITY Act, it remains a challenging legislative path for it to become law in the U.S. Senate. Indeed, the House of Representatives passed the bill by 294-134 in July 2025, while the Senate Banking Committee voted it forward by 15-9 in May. Nevertheless, the bill needs 60 votes in the Senate, which means that it needs bipartisan support. Even though big banks still support the bill, some of the Democratic senators have not made a decision in favor of it. 

Republicans have recently amended the bill to include temporary restrictions on crypto earnings for certain federal officials covered by the act, such as the President and Congress, but Democrats consider them to be insufficient. Additionally, Senate Majority Leader John Thune has already stated that the bill may fail before the coming August break. At this point, Galaxy Research reduced the chances of passage to 30% in 2026.

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