Goldman Sachs CEO David Solomon has publicly endorsed the CLARITY Act, throwing his weight behind the digital asset market structure bill as Senate negotiations enter a critical phase. His support comes even as banking industry groups intensify their opposition to the legislation's stablecoin reward provisions.

The CLARITY Act is designed to establish a clear division of regulatory authority between the Commodity Futures Trading Commission and the Securities and Exchange Commission for digital assets, a question that has fueled enforcement actions, litigation, and market uncertainty for years. Solomon told Politico that lawmakers should advance the bill to establish a workable regulatory framework. He argued that regulated institutions need a unified system in which qualified firms can participate, and that such a framework could bring traditional financial companies into the digital asset space after years of regulatory uncertainty. Solomon said the bill could create fairer rules, improve market stability, and support digital asset growth, while acknowledging that the legislation remains imperfect.

Wall Street Support Clashes With Banking Industry Opposition

Solomon's position places him at odds with several banking associations and JPMorgan CEO Jamie Dimon. Banks oppose provisions in the bill that allow rewards tied to payments, transfers, liquidity services, and other qualifying activities, arguing that these incentives could draw deposits away from community lenders.

The latest CLARITY Act text blocks interest or yield paid solely for holding payment stablecoins. However, it permits activity-based rewards that do not resemble passive bank interest. Banking groups contend that this distinction still leaves room for deposit-like products to operate outside normal banking regulations.

Banking associations are seeking targeted changes to Section 404 of the bill rather than rejecting digital asset legislation outright. Their primary concern remains the stablecoin reward mechanism and the potential for deposit flight. They emphasize that community banks rely on deposits to finance mortgages, farms, and small businesses.

Senate Vote Remains Uncertain

The crypto market structure bill faces mounting pressure from both banking groups and Senate Democrats. Republican senators released revised language on July 22, which includes new restrictions on federal officials issuing or sponsoring digital assets. Senator Elizabeth Warren said the ethics measures contain major gaps and described the broader proposal as inadequate.

The CLARITY Act advanced through the Senate Banking Committee in May by a 15-9 vote. A floor vote could take place before the August recess, though the revised draft still requires broader political support to pass.

Solomon stated that the bill would allow regulated firms to participate more actively in digital asset markets. He is not alone among industry leaders in calling for federal crypto legislation — Coinbase CEO Brian Armstrong and Ripple CEO Brad Garlinghouse have also urged lawmakers to establish clear federal rules for crypto market structure.