Goldman Sachs CEO David Solomon has publicly backed the CLARITY Act, saying the proposed legislation would give the digital asset market a clearer regulatory framework as lawmakers continue negotiations ahead of a possible Senate floor vote next week.

Solomon's comments came as lawmakers prepared updated bill text and continued discussions on how the measure should define market structure rules for digital assets. The legislation is intended to clarify the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission in overseeing digital assets — a division that has remained ambiguous for years, leaving crypto firms to navigate overlapping enforcement actions and conflicting jurisdictional claims from both agencies.

Speaking to Politico, Solomon said, "The CLARITY Act — like all legislation — is not perfect. And there are lots of things that you could debate and argue about." He added that the bill would help create "a level playing field to enhance market stability and allow these markets to develop appropriately."

Solomon also said he supported moving the legislation through Congress. "I'm very supportive of moving the CLARITY Act forward, so we can get some market structure in place and start to move the innovation process along," he said.

Banking executives raise concerns over stablecoins

Solomon's position differs from that of several banking executives who have objected to parts of the proposal. Some bank leaders argue that crypto companies could gain regulatory advantages if they offer products resembling traditional banking services without being subject to the same standards.

JPMorgan Chase CEO Jamie Dimon has publicly criticized portions of the legislation, particularly provisions linked to stablecoins and products that may offer yield or rewards. During a Fox Business interview in May, Dimon said, "It allows them to effectively pay interest on deposits, stablecoins or something like that, without protection that they should have."

Dimon also warned that banks would oppose the measure in its current form. "The banks will not accept it that way. I'm not worried about stablecoins but if it happened I'm telling you I will have nothing to do with it and it will eventually blow up," he said.

JPMorgan repeated similar concerns in a June blog post. The bank's executives argued that companies providing services similar to bank accounts should be subject to comparable oversight and consumer protection requirements.

Yield-bearing stablecoins remain a central issue

The treatment of yield-bearing stablecoins remains one of the main issues in negotiations over the CLARITY Act. Lawmakers are continuing to work on provisions covering stablecoin issuers, consumer protections, and products that offer rewards to users. The debate comes as stablecoins have grown into a major component of the digital asset ecosystem, with circulating supply across the largest tokens exceeding $250 billion and growing use in payments, remittances, and treasury management.

Coinbase CEO Brian Armstrong has said banks are lobbying lawmakers to limit stablecoin rewards because such products compete with traditional deposit-based businesses. Banking executives have continued to argue that firms offering comparable financial products should operate under comparable rules.

Solomon has also addressed regulation in separate remarks earlier this year. "When you burden this system with excessive regulation, you start to extract capital," he said. He added that regulation is necessary but said "it has got to be done thoughtfully, and we've got to get it right."

The CLARITY Act seeks to establish digital asset market structure rules by defining the responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Negotiations over several sections of the bill remain ongoing before lawmakers decide its next step in Congress.