Goldman CEO backs CLARITY Act as banks fight stablecoin rewards

Goldman Sachs CEO David Solomon has thrown his weight behind the CLARITY Act, putting Wall Street's second-largest bank at odds with banking trade groups that want tighter limits on stablecoin rewards and seven Senate Democrats who reject the latest draft.

Solomon told Politico he was "very supportive" of moving the bill forward so the United States could establish crypto market structure and advance digital asset development. He acknowledged the proposal was imperfect and open to debate. Passing a framework mattered more than resolving every disagreement first, the Goldman chief argued.

His endorsement places one of Wall Street's most prominent CEOs alongside crypto executives who have urged Congress to complete the bill, even as banking associations campaign against the current text.

The latest Republican draft lets crypto companies offer rewards tied to customer activity. Payments on stablecoins held in idle balances would remain prohibited. Banking groups argue this distinction lets crypto platforms compete for deposits through incentives, creating a risk that money moves away from community banks.

In a May letter to Senate Banking Committee leaders, several banking trade groups called for stronger safeguards against deposit flight. Funds leaving banks for stablecoin products could reduce credit available to households and businesses, particularly in communities that depend on smaller lenders, the groups wrote.

JPMorgan CEO Jamie Dimon has also criticized the legislation. Solomon's support does not signal that banks have reached an agreement. It shows major executives differ over whether the reward dispute should stop the bill.

The United States Hispanic Chamber of Commerce sent Senate leaders a letter this week supporting the banks' concerns. The USHCC warned that deposit losses could hurt small-business lending, community development and economic opportunities in Hispanic communities. It cited analyses showing net outflows connected to crypto activity at community banks.

Republican concerns have resurfaced despite a compromise negotiated earlier in 2026. Punchbowl News reported that Senators John Curtis and John Cornyn shared the banks' concerns about deposit flight. Senator Thom Tillis opposed the current ethics provision. Their objections add internal Republican pressure as party leaders seek enough votes to pass the measure.

Seven Democratic senators have rejected the latest text while keeping negotiations open. Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner and Raphael Warnock said in a joint statement that provisions covering ethics, consumer protection, illicit finance, conflicts of interest and market integrity required more work.

Senate Banking Committee Ranking Member Elizabeth Warren also criticized the draft. She argued its ethics language did not adequately address President Donald Trump's crypto business interests. Warren said the bill lacked sufficient investor and national security protections.

Republicans added restrictions on crypto activity by senior elected officials after Democrats made an ethics clause a condition for continuing talks. Trump accepted the provision this week. The agreement left enforcement to the Department of Justice and failed to settle Democratic concerns.

Alsobrooks objected to making the DOJ the sole enforcer. She described the arrangement as "unserious," according to reports cited by crypto.news. She said she would oppose the legislation if the language reached the Senate floor unchanged. Her position carries added weight because she was one of two Democrats who helped advance the bill through the Senate Banking Committee in May.

Democratic resistance has cut the bill's estimated 2026 passage odds by 15 percentage points from their July 21 peak, according to crypto.news. Republicans need Democratic support to reach the Senate's 60-vote threshold. Solomon, Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong are pressing lawmakers to act before the August recess.

Garlinghouse endorsed a similar argument from Ripple Chief Legal Officer Stuart Alderoty on July 22. Alderoty described the CLARITY Act as a consumer protection measure that would strengthen anti-money laundering and customer-verification rules while giving law enforcement and state authorities clearer tools against misconduct.

Goldman Sachs trades with an Alpha Score of 51 out of 100, labeled Mixed. JPMorgan carries a score of 61, labeled Moderate, at $347.63.