Goldman Sachs Backs Clarity Act, Splitting Wall Street Over Crypto Rules

Goldman Sachs chairman and CEO David Solomon has publicly endorsed the Clarity Act, a crypto market-structure bill now moving through the Senate, putting one of Wall Street’s largest banks at odds with rivals like JPMorgan. Solomon told Politico he is “very supportive” of the legislation, calling it an imperfect but necessary step to establish a regulatory framework and foster innovation. His backing lands as Senate Republicans circulate new text ahead of a possible floor vote, and as a coalition of banking groups and unions mobilize against it.

Wall Street’s Divide Over Stablecoin Provisions

The split centers on a provision governing stablecoin yield—the rewards crypto platforms pay users holding dollar-pegged tokens. Commercial banks, led by JPMorgan CEO Jamie Dimon, warn the language would drain deposits from insured accounts and curb local lending. Six of the largest banking trade groups, including the American Bankers Association, issued a joint statement Wednesday calling the Clarity Act a risk to “the local lending that drives economic activity in the U.S.” Labor unions have joined the opposition, urging lawmakers to strip the yield language. Investment banks like Goldman, which rely less on consumer deposits, see upside elsewhere. Solomon emphasized language that would allow regulated institutions to “participate more actively,” enabling traditional firms to use digital assets and blockchain rails. “Goldman Sachs’s position is that we believe strongly that we need one system where everybody can participate,” he said, declining to comment on other bankers’ views.

Goldman’s Own Crypto Turn

The endorsement aligns with Goldman’s deepening involvement in crypto. The bank disclosed a $1.1 billion position in a spot Bitcoin ETF, called the funds an “astonishing success,” and Solomon revealed a small personal bitcoin holding. The bill’s stablecoin section includes the Tillis-Alsobrooks compromise, which bans passive yield on idle balances but permits narrow activity-based rewards—a line the banking lobby argues leaves too much ambiguity. The Clarity Act has moved through bipartisan talks for months. The House passed its version in July 2025, and the Senate Banking Committee advanced its text in a 15-9 vote in May.

Ethics Concerns Cloud the Bill

The bill faces a sharp ethics problem. A new draft would bar federal officials from issuing digital assets, language negotiated between Senators Cynthia Lummis, Bernie Moreno, and the White House. Democrats call it too weak, citing distrust of the Trump Justice Department to enforce limits on the president. President Trump and his family made more than $1 billion from crypto ventures in the past year, fueling Democratic demands for stronger reform. A group of seven Democrats led by Angela Alsobrooks said Wednesday the text “falls short” on consumer protection.

Uncertain Path to Floor Vote

Republican senators John Curtis of Utah and John Cornyn of Texas told Punchbowl News they share bankers’ worries over deposit flight. “Crypto is not going to be loaning any money for small businesses,” Cornyn said. Bill Cassidy of Louisiana hinted at his own concerns. With opposition from both parties and questions over stablecoin yield and ethics, the Clarity Act’s path to a Senate floor vote remains murky. The outcome could reshape how Wall Street engages with digital assets—or stall the industry’s push for regulatory clarity.