Andrew McCormick, Head of Institutional and Market Development at Chainlink Labs, emphasized that outdated financial regulations from the 1930s are a major barrier preventing large institutions from entering the tokenized asset market. He identified the Digital Asset Market Clarity Act of 2025 (H.R. 3633) as a critical legislative step toward resolving these challenges.

Regulatory Barriers and the CLARITY Act

McCormick outlined three main obstacles for widespread adoption of tokenized assets: lack of regulatory clarity, insufficient trust in infrastructure stability, and limited understanding among financial decision-makers. The CLARITY Act targets the first issue by establishing clearer jurisdictional boundaries: the Commodity Futures Trading Commission (CFTC) would oversee digital commodities primarily, while the Securities and Exchange Commission (SEC) would maintain limited authority over certain primary-market securities transactions.

This resolution of jurisdictional ambiguity is expected to relieve compliance uncertainty at major banks, which currently hinders their ability to scale tokenized asset initiatives. The Senate Banking Committee advanced an amended version of the bill with a 15-9 vote in May 2026, following its House passage in 2025.

Tokenized equities stand to benefit significantly from this regulatory clarity. Several top financial institutions have conducted pilot projects in tokenized equities but have refrained from broad deployment due to the existing legal uncertainty.

Industry and Legislative Context

Chainlink executives view the CLARITY Act as a rare legislative opportunity with transformative potential for institutional access to onchain finance. McCormick, appointed to his role on June 4, 2026, has prioritized public support for the bill early in his tenure.

The CLARITY Act is part of a larger legislative framework, complemented by the GENIUS Act, which addresses stablecoin regulations. Together, these bills suggest a move by US lawmakers toward a cohesive approach to digital asset oversight rather than fragmented rules.

If enacted, infrastructure providers such as oracle networks and cross-chain services, core businesses for Chainlink, could be among the first to benefit from increased institutional participation.

This material is for informational purposes and does not constitute financial advice.