Goldman Sachs CEO David Solomon has endorsed the CLARITY Act, providing the digital-asset market structure legislation with a prominent Wall Street ally as US senators remain divided over stablecoin-reward provisions and ethics rules.

Solomon stated that he strongly supports moving the legislation forward, adding that clearer market-structure rules could help advance innovation in digital assets. While acknowledging that the bill is not perfect, he argued that it could create a level playing field, enhance market stability, and allow digital-asset markets to develop appropriately. The endorsement is notable given Goldman Sachs's historically cautious posture toward digital assets and positions the firm alongside crypto-industry advocates who have long argued that ambiguity over which federal regulator has authority over specific token types has deterred institutional participation and pushed innovation offshore.

Stablecoin Rewards Divide Banks and Crypto Firms

Solomon's position contrasts with that of JPMorgan CEO Jamie Dimon and major banking groups, which oppose the bill's current stablecoin-reward provisions. Banks contend that transaction-based rewards could draw deposits away from regulated lenders. They warn that such outflows could weaken community-bank funding and reduce credit availability for small businesses and agricultural borrowers.

The Senate draft bans interest-like rewards on idle stablecoin balances while still permitting rewards linked to transaction-based activity, including payments. Crypto companies argue that a wider ban on third-party rewards would be anti-competitive. Banking groups counter that the distinction could allow stablecoin platforms to compete with traditional deposits under a different set of rules.

The United States Hispanic Chamber of Commerce raised similar concerns in a letter to Senate leaders. The organization warned that deposit migration could affect small-business lending, community development, and economic opportunities in Hispanic communities. It emphasized that community banks play an important role in financing Hispanic-owned companies and underserved areas, urging lawmakers to limit the risk of funds moving from insured banks to digital-asset platforms.

Democratic Support Remains Uncertain

Senate Republicans released updated bill language on July 22. Several Democratic negotiators indicated that the proposal still requires changes to its ethics, consumer-protection, illicit-finance, conflict-of-interest, and market-integrity provisions before they can offer support.

Republicans need Democratic backing to overcome the Senate's 60-vote procedural threshold. According to Reuters, the CLARITY Act would require at least eight Democratic votes to advance.

The legislation would clarify the respective regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), a jurisdictional boundary that has been the subject of years of debate, enforcement actions, and conflicting court rulings. It would also establish rules for digital-asset intermediaries, trading platforms, and certain token transactions, forming what would be the most comprehensive federal framework for digital-asset markets to date if enacted.