Goldman Sachs CEO backs CLARITY Act ahead of Senate vote

Goldman Sachs CEO David Solomon endorsed the Digital Asset Market Clarity Act, a crypto market structure bill that faces a Senate vote. His support puts him at odds with most other big-bank chief executives.

Solomon told Politico the legislation is "not perfect." He said it creates a "level playing field to enhance market stability."

JPMorgan Chase CEO Jamie Dimon has taken the opposite side. Dimon said in a May interview that the CLARITY Act would allow crypto companies to pay interest on stablecoins "without the protection that they should have." Banks would not accept that, he added.

The stablecoin yield provision is the core divide. Under current law, banks face restrictions on paying interest on deposits. The CLARITY Act would let non-bank crypto issuers offer yield on stablecoins. Critics say that gives them an unfair advantage.

Senator Elizabeth Warren of Massachusetts called the bill "dead on arrival." She argued Wednesday that the legislation fails to protect investors, the financial system, and national security. Warren also pointed to ethics provisions that shield President Donald Trump's crypto investments from Justice Department scrutiny. The enforcement mechanism leaves oversight to federal prosecutors rather than state authorities, she said.

Republicans released the bill text Wednesday. The party will need at least seven Democratic votes to reach the 60-vote threshold in the Senate. As of Thursday, leaders had not scheduled a floor vote.

Solomon's public backing carries weight at Goldman Sachs. The bank operates a small crypto trading desk and holds a GS stock page but has historically been cautious on digital assets. His endorsement suggests the firm sees regulatory clarity as a net positive for the market.

The debate over stablecoin yields in the CLARITY Act has drawn opposition from banks. Related coverage: Goldman CEO backs CLARITY Act as banks fight stablecoin rewards.