Goldman CEO David Solomon endorses the CLARITY Act, calling it a 'level playing field,' while JPMorgan and other banks argue it gives crypto firms an edge on stablecoins.
David Solomon, chief executive of Goldman Sachs, publicly endorsed the CLARITY Act on Tuesday, breaking with some of the largest Wall Street banks that have fought key provisions of the crypto market structure bill.
Solomon told Politico the legislation is "not perfect" but said it creates "a level playing field to improve market stability and allow these markets to develop in an appropriate way." He added he is "very much in favor of moving forward" with the bill.
The CLARITY Act would define the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission in overseeing digital assets. Lawmakers are still negotiating provisions on stablecoin issuers, consumer protections, and yield-bearing products. An updated version of the bill was circulated by a group of Republican senators ahead of a potential vote on the Senate floor next week.
Solomon's stance contrasts with that of Jamie Dimon, CEO of JPMorgan Chase. Dimon argued in a Fox Business interview in May that the bill puts traditional banks at a competitive disadvantage. It would allow crypto companies to offer stablecoins with yields without the same regulatory requirements. "Banks will not accept it that way," Dimon said. JPMorgan also published a blog in June in which bank executives argued that firms offering products similar to bank accounts should fall under comparable oversight.
Brian Armstrong, CEO of Coinbase, accused banks of lobbying legislators to restrict stablecoin yields because they threaten deposit-based business models.
The split among banking chiefs reflects a deeper fight over how stablecoins should be regulated. Traditional banks see yield-bearing stablecoins as a direct threat to their deposit base. Crypto firms argue the current regulatory vacuum stifles innovation and pushes activity offshore.
Polymarket traders now put the odds of the CLARITY Act becoming law in 2026 at 43%, up from 32% last Friday, following reports that President Donald Trump has backed the bill after a stalled ethics clause was removed.
Goldman Sachs, with an Alpha Score of 51 (Mixed), and JPMorgan, at 61 (Moderate), reflect the divergent views among financial giants. JPMorgan shares were flat at $347.88 on Tuesday.
If the bill passes in its current form, banks with large deposit bases face the most pressure as stablecoin issuers could offer competitive yields. If the bill stalls, crypto companies remain in regulatory limbo, with no clear path for compliance or product development.
The Senate floor vote, if scheduled, would be the first major test of crypto legislation in Congress this year.
Read more: Goldman CEO backs CLARITY Act as banks fight stablecoin rewards
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