Goldman CEO Backs Crypto Bill JPMorgan CEO Warns of Blow Up

The CLARITY Act has split Wall Street's two largest banks. Goldman Sachs CEO David Solomon said the digital-asset market structure bill creates clear rules for crypto. JPMorgan Chase CEO Jamie Dimon said the same legislation will eventually blow up.

The legislation would establish a regulatory framework for digital assets by defining the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Lawmakers are still negotiating provisions covering stablecoin issuers and yield-bearing products.

The core disagreement comes down to stablecoin rewards. The bill would let crypto companies offer yield-bearing stablecoin products. Dimon argues those products function like bank deposits without the same consumer protections.

Solomon told Politico the bill is not perfect. He said there are plenty of things to debate and argue about. He described the legislation as an important step toward market stability. "I'm 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 said.

Dimon took the opposite view in a Fox Business interview in May. "It allows them to effectively pay interest on deposits, stablecoins or something like that, without protection that they should have," he said. He said banks would not accept the legislation as written. "I'm not worried about stablecoins but if it happened I'm telling you I will have nothing to do with it and it will eventually blow up," Dimon said.

JPMorgan executives expanded on the criticism in a June blog post. Firms offering products that function like traditional bank accounts should face comparable oversight and consumer protections, the bank argued. Coinbase CEO Brian Armstrong has argued that banks are lobbying lawmakers to restrict stablecoin rewards because they threaten banks' deposit-based business models.

Solomon's comments echo remarks he made in February criticizing the economic costs of excessive regulation. "When you burden this system with excessive regulation, you start to extract capital," he said at the time. He acknowledged the need for oversight. Regulation "has got to be done thoughtfully, and we've got to get it right," he said.

The stablecoin rewards provision has become the biggest obstacle in negotiations. Analysts said the outcome of the bill could reshape the competitive landscape for digital assets. A regulatory path for yield-bearing stablecoins would give crypto firms a clear advantage over banks, the analysts said.

JPMorgan shares slipped 0.68% on Friday to $345.85. The stock carries a Moderate Alpha Score of 61. Goldman Sachs, with a Mixed Alpha Score of 51, traded flat. The broader crypto market saw net outflows in early July. Binance, the largest exchange, drew inflows and held roughly 55% of tracked user funds.

Republican senators circulated an updated version of the bill text this week. A Senate floor vote could come as early as next week. The stablecoin rewards provision remains the core unresolved issue.