Franklin Templeton Backs the CLARITY Act
Franklin Templeton joins major Wall Street firms backing clear US rules for digital assets.
Franklin Templeton has joined some of the world’s largest financial institutions in supporting the CLARITY Act. The Franklin Resources subsidiary announced its decision on July 27. The bill had already received backing from BlackRock, Fidelity Investments, Goldman Sachs and Charles Schwab, among others.
The CLARITY Act aims to establish a clearer regulatory framework for digital assets in the United States. It would help investors better understand the protections available to them, while giving industry participants greater certainty over whether their activities fall under the supervision of the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
Franklin Templeton believes the cryptocurrency industry has been waiting for this type of regulation for a long time. Other supporters of the bill have presented similar arguments.
BlackRock’s Samara Cohen said the legislation could foster innovation while maintaining market transparency and resilience and protecting investors. Fidelity, which manages approximately $7.1 trillion in assets, called on senators to introduce a consistent set of rules nationwide.
Goldman Sachs CEO David Solomon pointed to banks’ growing interest in the tokenization, custody and trading of digital assets, as well as blockchain-based services. Charles Schwab described the bill as a potential catalyst for the wider adoption of digital assets by both financial institutions and retail investors.
On July 22, Senate Republicans unveiled an updated version of the CLARITY Act. The document combines the work of the Senate Banking and Agriculture committees and divides regulatory responsibilities between the SEC and the CFTC.
Franklin Templeton’s support for the CLARITY Act reflects a broader trend across the financial sector. A growing number of major firms are not only advocating for clear digital asset regulations but also adopting blockchain technology. They expect it to streamline operations and reduce the cost of financial services.
