Goldman Sachs CEO David Solomon has thrown his weight behind the CLARITY Act, arguing the crypto market-structure bill would bring stability even though it is imperfect. His backing arrives as banking groups fight the draft’s stablecoin yield provision and Senate Democrats reject the latest text over ethics concerns.
Goldman Sachs chief executive David Solomon has declared his support for the CLARITY Act, the crypto market-structure bill now moving through the Senate. He told Politico he is supportive of advancing the measure so lawmakers can put market structure in place and move the innovation process along.
Solomon conceded the bill is not perfect and that plenty in it could be debated. He argued that one of the most important things about the bill is a level playing field that enhances market stability and lets the markets develop appropriately. His stance aligns him with Ripple and Coinbase CEOs Brad Garlinghouse and Brian Armstrong, who are also pressing the Senate to pass the bill.
Banks Fight the Stablecoin Yield Provision
His endorsement cuts against banks, which oppose the draft’s stablecoin provisions. The bill permits third-party crypto firms to pay activity-based rewards, and banking associations warn this could drive significant outflows from community banks. JPMorgan CEO Jamie Dimon has voiced opposition before.
Senate Republicans released the latest draft yesterday, keeping the rewards provision while banning stablecoin yields only on idle balances. The United States Hispanic Chamber of Commerce wrote to Senate leaders this week backing the banks, warning the provision could harm small business lending and community development in Hispanic communities.
Democrats Reject the Latest Text
Approval odds remain low because Democrats oppose the new draft despite the addition of an ethics provision. Democratic staff on the Senate Banking Committee released a two-page fact sheet on July 22 arguing the draft gives President Trump five ways to keep profiting from crypto — through his existing businesses, new ventures, memecoin revenue, personal investments, and enforcement.
Ranking Member Elizabeth Warren said the bill fails to cover Trump’s main crypto income streams, and in her statement she rejected the text: “This bill should be dead on arrival.”
Republican divisions add to the uncertainty. Senators John Curtis and John Cornyn share the banks’ worries about deposit flight, while Senator Thom Tillis has come out against the ethics provision.
Sources: CoinGape, Bitcoin News
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