Goldman Sachs CEO backs Clarity Act, breaking with banking industry

Goldman Sachs CEO David Solomon endorsed the CLARITY Act, a crypto regulation bill, splitting from banking rivals like JPMorgan's Jamie Dimon. Solomon sees the bill as creating a "level playing field," while opponents fear its provisions on "stablecoin yield" will pull deposits from local banks. The bill, which splits SEC/CFTC oversight, faces an uncertain Senate vote amid Democratic concerns over ethics rules.

Solomon's CLARITY Act endorsement

• ▪Goldman Sachs CEO David Solomon has endorsed the CLARITY Act, a bill aimed at creating a market structure for cryptocurrency
• ▪David Solomon said he supports the CLARITY Act to "get some market structure in place and start to move the innovation process along."
• ▪David Solomon described the CLARITY Act as "not perfect" but valuable for creating "a level playing field to enhance market stability."

Banking industry opposition

• ▪In May 2026, JPMorgan CEO Jamie Dimon said of the CLARITY Act's stablecoin provisions, "The banks will not accept it that way."
• ▪David Solomon's endorsement of the CLARITY Act places Goldman Sachs in opposition to other major banks and banking trade groups
• ▪JPMorgan CEO Jamie Dimon is a leading opponent of the CLARITY Act
• ▪Commercial and community banks argue the CLARITY Act would pull deposits from insured accounts, reducing funds available for local lending
• ▪A coalition of six major banking trade groups, including the American Bankers Association, stated the CLARITY Act risks "the local lending that drives economic activity in the U.S."

Stablecoin yield debate

• ▪Coinbase CEO Brian Armstrong asserts that banks oppose stablecoin rewards because they threaten the banks' deposit-based business models
• ▪Banking executives contend that allowing crypto firms to offer yield on stablecoins without equivalent bank regulations creates an unfair competitive disadvantage for traditional banks
• ▪The banking industry's opposition to the CLARITY Act centers on provisions governing "stablecoin yield," rewards paid to users for holding dollar-pegged tokens

CLARITY Act provisions

• ▪Senate Majority Leader John Thune aims for a Senate floor vote on the CLARITY Act in the week of July 27, 2026
• ▪The CLARITY Act would establish a regulatory framework for digital assets, splitting oversight between the SEC and the CFTC
• ▪A group of seven Senate Democrats led by Angela Alsobrooks said the current draft of the CLARITY Act "falls short" on ethics, consumer protection, and illicit finance
• ▪An updated draft of the CLARITY Act would prohibit the president, members of Congress, and other officials from issuing digital assets for compensation while in office
• ▪A version of the CLARITY Act passed the House of Representatives in July 2025 and the Senate Banking Committee in May 2026 by a 15-9 vote