The CLARITY Act is drawing support from major financial institutions that manage more than $30 trillion in combined assets ahead of Congress’ August recess.

Industry optimism has also increased after Galaxy Digital CEO Mike Novogratz said the CLARITY Act could pass if lawmakers reach a limited ethics compromise in Congress.

Supporters say clearer divisions of responsibility between the SEC and CFTC could encourage broader institutional participation in digital asset markets and blockchain infrastructure. The legislation continues to gain attention as financial firms and industry leaders push for more defined rules before lawmakers take up the bill ahead of the recess.

Institutional Support Strengthens Legislative Momentum

Whale Factor reported rising institutional support for the CLARITY Act, with the discussion centered on regulatory clarity rather than the performance of any individual cryptocurrency.

The post identified five major financial firms as supporters: BlackRock, Fidelity, Goldman Sachs, Charles Schwab and Grayscale. The two companies combined manage over $30 trillion in assets. Their participation was presented as a sign of growing institutional involvement in digital asset regulation.

The tweet said regulatory certainty remains a priority for traditional finance, while clear jurisdiction between the SEC and CFTC remains a central objective. Large institutions generally prefer predictable compliance standards before expanding their participation in the market.

The legislative calendar also adds urgency to the negotiations, as Congress is approaching its August recess. That timing matters because lawmakers’ schedule can shape how quickly a bill advances, and market participants are continuing to monitor developments before regular sessions pause.

Regulatory Framework Draws Broad Industry Attention

The debate is focused less on cryptocurrency prices or trading activity and more on long-term market infrastructure. Regulatory clarity remains the central theme.

Supporters argue that separating SEC and CFTC responsibilities would simplify compliance. They also say clear rules could help product development across several blockchain sectors. Custody, tokenization, lending and investment products could all benefit from standardized oversight.

Traditional financial institutions often require established legal frameworks before allocating capital. Pension funds, insurance companies and sovereign wealth funds typically operate under strict compliance requirements, so regulatory certainty is a practical issue for firms assessing whether to expand digital asset-related offerings.

The institutional backing described by Whale Factor does not decide the bill’s outcome. Congress still controls the legislation’s progress through negotiations, and final provisions may still change before any bill is completed.

Novogratz Sees Path Toward Final Agreement

CryptosRus later shared comments from Galaxy Digital CEO Mike Novogratz, who said he is confident the CLARITY Act will ultimately pass. His view centered on resolving the remaining ethics concerns.

According to Novogratz, a limited compromise could satisfy both sides. State attorneys general would reportedly lose the ability to sue lawmakers directly, while still being able to challenge the Department of Justice over enforcement matters.

His comments point to negotiations focused on procedural details rather than broader crypto policy. The remaining discussions appear centered on governance provisions, marking a different stage from earlier debates over regulatory jurisdiction.

The digital asset industry continues to watch the negotiations closely because the bill’s structure could shape how firms navigate compliance once rules are set. The CLARITY Act remains under negotiation until lawmakers complete the process.

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