Goldman Sachs CEO David Solomon supports the CLARITY Act, breaking from JPMorgan's Dimon over stablecoin yield rules. The bill faces uncertain path before summer recess.
Goldman Sachs CEO David Solomon broke with much of Wall Street this week by publicly endorsing the Digital Asset Market Clarity Act, a bill that would bring most crypto activity under a federal framework and let platforms pay interest on stablecoin holdings.
Solomon told Politico he was "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 acknowledged the bill was "not perfect" but argued its value lay in creating "a level playing field to enhance market stability and allow these markets to develop appropriately."
The legislation would classify most crypto tokens as non-securities, removing them from SEC jurisdiction, and protect developers who build decentralized software. It would also permit crypto platforms to offer yields on stablecoin balances, a provision that has drawn fierce opposition from traditional banks.
JPMorgan Chase CEO Jamie Dimon has led the fight against the stablecoin yield rule. In a Fox Business appearance in May, Dimon said fewer rules give crypto firms an unfair edge. "The banks will not accept it that way," he said.
The country's largest banking trade groups warned senators in May that a compromise version of the stablecoin language still contained loopholes. Coinbase CEO Brian Armstrong fired back, saying banks were simply trying to protect their deposit business by going after a competitor.
Solomon's position puts Goldman Sachs at odds with JPMorgan and most of the banking lobby. The Goldman Sachs stock page shows an Alpha Score of 50/100, while JPMorgan scores 65/100. Both stocks traded flat on the news.
Senate Majority Leader John Thune made clear Thursday that the bill will not pass before Congress breaks for its summer recess. That is a significant blow; negotiators had targeted August 7 as the date the bill needed to clear the Senate to have a realistic shot at passing in 2026.
Odds on prediction platform Polymarket have dropped to about 38%, down from over 80% earlier this spring.
Thune left open the possibility of beginning floor debate before the recess, which could set up a narrow chance in September. "I would like to at least get Clarity started," he told reporters. "We'll see where the votes are."
The Senate's first order of business next week will be a bipartisan Russia sanctions bill championed by the late Senator Lindsey Graham.
Ron Hammond of crypto trading firm Wintermute said support for the Clarity Act still exists in the Senate, but "the voice of election politics is louder," with midterm campaigns ahead in November.
Senator Cynthia Lummis of Wyoming, one of the bill's main Republican negotiators, said the most disputed sections remain open for changes that she believes could bring more Democrats on board. Time is running short, she said.
The bill's path remains uncertain. The summer recess deadline means any passage would have to come in a compressed September window, with election-year dynamics weighing on every vote. Goldman CEO backs CLARITY Act as banks fight stablecoin rewards
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