Goldman Sachs Chairman and CEO David Solomon has publicly endorsed the Clarity Act, the crypto market-structure bill currently advancing through the U.S. Senate — a position that separates one of Wall Street's largest banks from competitors actively campaigning against the legislation. The bill would establish the first comprehensive federal framework for digital asset markets, ending years of regulatory ambiguity in which the SEC and CFTC have sparred over jurisdiction while other jurisdictions, including the European Union, moved ahead with their own rules.

"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," Solomon said in an interview with Politico. While acknowledging the bill is imperfect, Solomon said its significance lies in establishing "a level playing field to enhance market stability and allow these markets to develop appropriately."

His comments came as Senate Republicans began circulating revised text of the bill this week, ahead of a potential floor vote. Solomon's endorsement stands in stark contrast to fierce opposition from other banking executives, most notably JPMorgan Chase CEO Jamie Dimon, who declared war on the bill and in May confronted Coinbase CEO Brian Armstrong over the crypto industry's lobbying efforts.

Banks Divide Over Stablecoin Yield

The fault line among financial institutions follows their business models. At the center of the dispute is a provision governing stablecoin yield — the rewards crypto platforms can pay users who hold dollar-pegged tokens. Stablecoins have grown into a multibillion-dollar market without dedicated federal legislation governing their issuance and reserves, making the rules around them one of the highest-stakes questions in the bill. Commercial and community banks argue the language would siphon deposits out of insured accounts and erode local lending capacity.

Six of the largest banking trade groups, including the American Bankers Association, issued a statement Wednesday calling the Clarity Act and its provisions a threat to "the local lending that drives economic activity in the U.S." The ABA has pushed to strip the yield language from the bill, and labor unions have joined the opposition.

Investment banks like Goldman Sachs, which are less dependent on consumer deposits, have focused their attention on other sections of the legislation. Solomon highlighted language that would enable "regulated institutions that have been on the sidelines participate more actively" — effectively a green light for established financial firms to adopt digital assets and blockchain infrastructure.

"Goldman Sachs's position is that we believe strongly that we need one system where everybody can participate," Solomon said, declining to comment on his fellow bankers' positions.

The stance aligns with Goldman's broader embrace of digital assets. The bank has disclosed a $1.1 billion position in a spot bitcoin ETF, called the funds an "astonishing success", and Solomon has disclosed holding a small personal amount of bitcoin.

The bill's stablecoin section retains the Tillis-Alsobrooks compromise, which prohibits passive yield on idle balances while permitting limited activity-based rewards — a boundary the banking lobby contends remains too permissive.

The legislation has progressed through months of bipartisan negotiations. The House passed its version in July 2025, and the Senate Banking Committee advanced its text in a 15-9 vote in May. The EU's Markets in Crypto-Assets regulation, fully in effect since late 2024, has added to the pressure on Congress, as U.S. firms weigh operating under clearer rules abroad versus continued ambiguity at home.

Clarity Act Faces an Uphill Battle

The bill's path to the Senate floor remains uncertain. Republican Senators John Curtis of Utah and John Cornyn of Texas told Punchbowl News they share the banking industry's concerns about deposit flight. "Crypto is not going to be loaning any money for small businesses," Cornyn said. Senator Bill Cassidy of Louisiana also signaled reservations.

Ethics provisions present the most contentious challenge. The latest Clarity Act draft would bar federal officials from issuing digital assets, language negotiated among Senators Cynthia Lummis, Bernie Moreno, and the White House. Democrats argue the provision is insufficiently strong, partly because they lack confidence that the Trump Justice Department would enforce restrictions on the president.

President Trump and his family have generated more than $1 billion from crypto ventures over the past year, a windfall that has intensified Democratic calls for reform. A group of seven Democrats led by Angela Alsobrooks stated Wednesday that the text "falls short" on consumer protection, illicit finance, and conflicts of interest.

Senator Lummis offered a blunt assessment of the impasse: "There's not going to be a provision that makes opponents of the president happy that also makes the president happy," she told Punchbowl News.

Majority Leader John Thune is targeting a vote in the coming week — a window that lawmakers say could determine whether the bill survives before the August recess.