Goldman Sachs chairman and CEO David Solomon endorsed the Clarity Act this week, the crypto market-structure bill moving through the Senate, setting the bank apart from rivals opposing the legislation. Solomon called the bill imperfect but said its value lies in creating a level playing field to enhance market stability. The endorsement follows new bill text circulated by Senate Republicans this week and contrasts with opposition from JPMorgan CEO Jamie Dimon, who declared war on the bill, and six major banking trade groups that issued a statement Wednesday warning the legislation risks local lending.
Solomon Calls for Market Structure and Level Playing Field
Solomon said in an interview with Politico that he is very supportive of moving the Clarity Act forward to get market structure in place and start the innovation process. He said the bill would create a level playing field to enhance market stability and allow markets to develop appropriately. Solomon pointed to language that would let regulated institutions that have been on the sidelines participate more actively, a green light for old-guard firms to use digital assets and blockchain rails. He said Goldman Sachs's position is that the bank believes strongly in one system where everybody can participate, and declined to weigh in on other bankers' views.
Banking Trade Groups Warn Stablecoin Yield Provision Threatens Deposits
Six of the largest banking trade groups, including the American Bankers Association, published a statement Wednesday that called the Clarity Act and its provisions a risk to the local lending that drives economic activity in the U.S. Commercial and community banks warn the language would pull deposits out of insured accounts and cut into local lending. The fight centers on a provision that governs stablecoin yield, the rewards crypto platforms can pay users who hold dollar-pegged tokens. The bill's stablecoin section holds the Tillis-Alsobrooks compromise, which bars passive yield on idle balances while it permits narrow activity-based rewards. The ABA has pushed to strip the yield language, and labor unions have joined the opposition.
Goldman Discloses $1.1 Billion Bitcoin ETF Position
Goldman Sachs has disclosed a $1.1 billion position in a spot bitcoin ETF and called the funds an astonishing success. Solomon revealed a small personal bitcoin holding. The stance fits Goldman's turn toward the asset. Investment banks like Goldman, less reliant on consumer deposits, have trained their focus on parts of the bill beyond stablecoin yield.
Senate Republicans Circulate New Draft Ahead of Floor Vote
Senate Republicans began circulating new text of the bill this week, ahead of a possible floor vote. The House passed its version in July 2025. The Senate Banking Committee advanced its text in a 15-9 vote in May. The new Clarity Act draft would bar federal officials from issuing digital assets, language negotiated between Senators Cynthia Lummis, Bernie Moreno, and the White House. A group of seven Democrats led by Angela Alsobrooks said Wednesday the text falls short on consumer protection, illicit finance, and conflicts of interest. President Trump and his family made more than $1 billion from crypto ventures over the past year. Republican senators John Curtis of Utah and John Cornyn of Texas told Punchbowl News they share the banks' worry over deposit flight. Cornyn said crypto is not going to be loaning any money for small businesses. Bill Cassidy of Louisiana hinted at concerns of his own. Majority Leader John Thune aims for a vote in the coming week.
FAQ
What did Goldman Sachs CEO David Solomon say about the Clarity Act?
Solomon said in an interview with Politico that he is very supportive of moving the Clarity Act forward to get market structure in place and start the innovation process. He called the bill imperfect but said its value lies in creating a level playing field to enhance market stability and allow markets to develop appropriately.
Why do banking trade groups oppose the Clarity Act?
Six of the largest banking trade groups, including the American Bankers Association, published a statement Wednesday that called the Clarity Act and its provisions a risk to the local lending that drives economic activity in the U.S. Commercial and community banks warn the language governing stablecoin yield would pull deposits out of insured accounts and cut into local lending.
What is the timeline for a Senate vote on the Clarity Act?
Senate Republicans began circulating new text of the bill this week. Majority Leader John Thune aims for a vote in the coming week. The House passed its version in July 2025, and the Senate Banking Committee advanced its text in a 15-9 vote in May.
