Wall Street May Take Action Instead of Waiting If Crypto Law Fails to Pass
The expected Senate vote on the CLARITY Act on September 15 could accelerate Wall Street’s crypto investments, but it does not appear mandatory for the process to begin.
Ahead of the U.S. Senate’s vote on the Digital Asset Market Clarity Act (CLARITY), financial institutions may continue to develop digital asset products and infrastructure even if the bill fails to pass. If enacted, a clearer framework is expected for banks, brokers, and asset managers.
Traditional financial firms have entered the sector through Bitcoin exchange-traded funds, tokenization platforms, and other digital asset products, despite long-standing uncertainty over how securities and commodities rules apply to crypto assets. Chris Crawford, who works in the digital assets space at Fenwick, said CLARITY would be “very helpful” for Wall Street’s crypto adoption but that it is not a necessary prerequisite.
Activities could be accelerated if CLARITY fails to pass
According to Crawford, the law could clarify the boundaries regarding which digital assets are considered commodities or securities. This could make it easier for financial institutions working with crypto to internally determine which regulations they are subject to.
Brian Vieten, senior research analyst at Siebert Financial, believes that the bill’s failure to pass could prompt some companies to take action rather than waiting. Vieten noted that U.S. firms could pull forward product launches and tokenization activities instead of pushing them to the 2027-2028 period, in order to take advantage of the current, more favorable regulatory environment.
In this scenario, some companies might choose to offer products under current conditions rather than waiting for a change in future administration or regulatory approach. Vieten stated that regardless of the outcome, he expects Wall Street to continue building digital asset infrastructure.
The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are also continuing to draft rules for the digital asset sector, even if no new law emerges from Congress. Companies like Robinhood support CLARITY and are calling for a bipartisan consensus in the Senate.
For institutional investors, the impact of the vote may be more limited. Bitwise research analyst Ryan Rasmussen said that professional investors are not expected to liquidate their Bitcoin positions from their portfolios just because CLARITY fails to pass. According to Rasmussen, while investors have frequently asked about the law in recent months, uncertainty has not become the primary factor preventing them from investing in crypto assets.
The launch of spot Bitcoin ETFs in 2024 has also created a new access channel for professional investors. Thus, the outcome of CLARITY may affect the speed and scope of existing activities rather than initiating Wall Street’s entry into crypto.