Fidelity, the $7.1 trillion investment giant, has officially thrown its weight behind the Crypto Clarity Act and is urging the Senate to pass it. The bill, which aims to establish clear rules for cryptocurrency — particularly stablecoins — has been in development since last year. A new draft includes a provision that bans government officials and their families from issuing or promoting digital assets, a move that addresses earlier criticism from Senator Elizabeth Warren.
What the bill does
The Crypto Clarity Act is designed to create a federal framework for digital assets, with a heavy focus on stablecoins. It would set rules for issuance, reserves, and oversight, giving the industry something it's been asking for: regulatory certainty. The latest draft also includes an ethics clause that prohibits officials and their immediate family members from issuing or promoting cryptocurrency. That's a direct response to concerns that the bill could be used to benefit President Trump's family — an argument Warren made earlier this year.
Why Fidelity is backing it
Fidelity isn't just any endorser. The firm manages Bitcoin and other digital asset ETFs, which the SEC approved back in 2024. For a company that size, clear rules aren't a luxury — they're a necessity. Fidelity's public support gives the bill a major boost, especially since the asset manager has been a steady institutional player in crypto. The company's endorsement signals that the bill has buy-in from traditional finance, not just crypto-native firms.
The political and industry divide
The bill hasn't had an easy path. It was stalled earlier due to concerns from banking chiefs over stablecoins and the potential for paying yield. Coinbase, once a supporter, withdrew its backing in January after disagreements with banking leaders on that exact issue. Senator Warren had argued the original version could be exploited by the Trump family. The new draft's ethics provision seems designed to kill that criticism. Other supporters include the Crypto Council for Innovation, the Blockchain Association, the National Fraternal Order of Police, and a handful of politicians.
The bill is now in the Senate's hands. Fidelity's endorsement could help sway undecided lawmakers, but the stablecoin yield question remains a sticking point. No vote has been scheduled yet. The industry is watching to see if the new ethics language is enough to bring back lost supporters — or if the divide between crypto firms and traditional banks will keep the bill stuck.
