Wall Street’s Crypto Expansion Seen Continuing Regardless of Senate CLARITY Act Vote

• Wall Street financial institutions are expected to continue expanding their digital-asset businesses regardless of whether the U.S. Senate passes the CLARITY Act.
• If the bill passes, traditional finance’s entry into crypto markets could accelerate through blockchain investment and the launch of tokenized products.
• More financial firms are likely to use the current favorable regulatory environment to accelerate digital-asset infrastructure buildout and tokenization businesses, with 2027 and 2028 as target years.

Forecast Trend Report by Period

Wall Street financial firms are poised to keep expanding their digital-asset businesses regardless of whether the U.S. Senate advances the CLARITY Act.

Chris Crawford, a partner in Fenwick’s digital assets practice, told CoinDesk on Sept. 14 that the CLARITY Act would significantly help Wall Street adopt the technology, but is not a necessary precondition.

If the bill passes, banks, brokerages and asset managers would gain clearer standards on whether digital assets fall under securities or commodities rules and how they can be traded. That, in turn, could speed traditional finance’s push into crypto markets through blockchain investment and the launch of tokenized products.

Even if the bill fails to advance, Wall Street is unlikely to pull back on related investment. Brian Bedell, a senior research analyst at Siebert Financial, said U.S. financial firms already have economic incentives to accelerate product launches and tokenization efforts aimed at 2027 and 2028 while the current favorable regulatory environment remains in place.

Some businesses could even move faster rather than disappear if the CLARITY Act does not pass, he said. Under any outcome, Wall Street’s buildout of digital-asset infrastructure will continue. More financial firms may try to make use of the current regulatory backdrop as they factor in the possibility that a future administration or regulators could change direction.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are also moving ahead with crypto-related rulemaking separately from Congress’s handling of the legislation. Robinhood has also called for bipartisan support, saying the CLARITY Act could improve regulatory clarity for innovation and consumer protection.

The Senate vote is also not viewed as a decisive variable for institutional crypto investment. Ryan Rasmussen, a research analyst at Bitwise, said the impact would be limited for professional investors and large platforms that already include Bitcoin in their portfolios. Even if the CLARITY Act does not pass, they would not remove Bitcoin from those portfolios.

The U.S. Senate is set to hold a procedural vote on Sept. 15 on whether to begin formal consideration of the CLARITY Act. The measure needs 60 votes to advance, while disagreements over ethics provisions related to public officials’ crypto interests and rules governing stablecoin compensation remain late-stage sticking points.

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Source: en.bloomingbit.io