Goldman Sachs CEO David Solomon backs the revised Crypto Clarity Act. Seven Senate Democrats say the bill falls short on ethics and consumer protections.
Republicans released a revised draft of the Crypto Clarity Act on Wednesday, drawing immediate support from Goldman Sachs (NYSE: GS) CEO David Solomon and sharp opposition from Senate Democrats.
Solomon told Politico he supports the legislation despite acknowledging it is not perfect. “I think one of the most important things that it does is that it creates a level playing field to enhance market stability and allow these markets to develop appropriately,” he said. “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.”
His endorsement puts him at odds with JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon, who told Fox Business in May that the bill would let crypto companies effectively pay interest on deposits without the same regulatory protections banks face. “The banks will not accept it that way,” Dimon said. “I’m telling you I will have nothing to do with it and it will eventually blow up.”
Seven Senate Democrats who spent months negotiating the bill issued a joint statement Wednesday saying the latest text “falls short” on ethics, consumer protection, illicit finance, conflicts of interest, and market integrity, according to Politico. The signatories included Senators Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock. Senator Cory Booker called it “a Republican text” and said the only path forward is bipartisan.
Senator Kirsten Gillibrand, a key negotiator, did not sign the statement. Senator Elizabeth Warren went further on X, calling the bill “dead on arrival” and saying it does nothing to stop President Donald Trump from profiting from crypto. Democrats want state attorneys general to have enforcement power over the ethics language, not just the Justice Department.
Senator Cynthia Lummis pushed back, calling the bill “legitimate” and arguing Trump has agreed to implement ethics standards that ban all federal officials, including himself, from certain crypto activity. Senator Tim Scott said the bill “protects everyday Americans” and “strengthens national security.”
Coinbase (NASDAQ: COIN) CEO Brian Armstrong said on X the bill is “ready for a full Senate floor vote” and called it a “true bipartisan compromise.” The banking lobby remains opposed, with a coalition of trade groups warning Wednesday that the latest draft still puts local lending at risk through its treatment of crypto rewards programs.
For markets, the split among top bankers and lawmakers adds uncertainty to the regulatory outlook. Goldman Sachs carries an Alpha Score of 51 out of 100, labeled Mixed. JPMorgan scores 61, Moderate. Coinbase scores 25, Weak. The bill's fate now rests on whether Democrats and Republicans can bridge their differences before the next committee consideration. Read more on the Clarity Act debate.
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