Goldman Sachs CEO backs Clarity Act as banks push for changes
David Solomon told Politico he supports advancing the crypto market-structure bill, putting Goldman apart from many large banks.
By Dev Ramirez · Crypto Correspondent
· 3 min read
Goldman Clarity Act support is now coming from the top of one of Wall Street’s biggest banks: Goldman Sachs Chairman and CEO David Solomon told Politico he backs moving the crypto market-structure bill ahead. For everyday investors, the fight matters because the bill could decide which regulator oversees much of crypto trading in the U.S. and how products tied to stablecoins can be offered.
Solomon told Politico he is “very supportive of moving the Clarity Act forward,” saying the U.S. needs market rules that can support crypto-related innovation. He also said the proposal is “not perfect,” but argued that its value is in creating a more even set of rules that could improve market stability and help the sector develop.
Politico reported that Solomon suggested the framework could help bring more institutional participants into crypto markets, a goal Goldman has identified as a priority.
What is the Clarity Act?
The Clarity Act is a crypto market-structure bill that, if approved by Congress and signed into law, would create a formal U.S. framework for much of the digital asset market. According to the report, it would classify most crypto assets as non-securities, placing them outside the Securities and Exchange Commission’s authority.
A security is an investment product, such as a stock or bond, that falls under SEC rules. If many tokens are treated as non-securities, crypto platforms and issuers could face a different regulatory path than they would under the current SEC-centered approach.
The bill also includes protections for decentralized software developers and addresses stablecoin rewards, according to the report. Stablecoins are crypto tokens designed to keep a steady price, often by tracking the U.S. dollar one-for-one. Traders use them to move in and out of crypto positions without converting back to bank dollars each time, and some users rely on them for payments or transfers.
Why are banks fighting over stablecoin yield?
The biggest banking-sector dispute centers on stablecoin yield, meaning rewards paid on certain stablecoin balances. Crypto firms including Coinbase have offered rewards on some stablecoins, such as Circle’s USDC, with annual percentage yields in the 3% to 5% range, according to the report.
Banks argue that those rewards can make stablecoins look more attractive than traditional deposit accounts while avoiding the same oversight banks face. The GENIUS Act, passed last year, effectively allowed the practice, and banking lobbyists have been pushing to tighten the rules through the Clarity Act, according to the report.
JPMorgan Chase CEO Jamie Dimon has been among the most visible critics. In a May appearance on Fox Business, Dimon said banks would not accept a setup in which crypto firms can pay rewards on dollar-linked tokens without bank-like regulation.
Solomon’s support puts Goldman at odds with much of the banking industry on the bill’s direction. A coalition of banking trade groups and Dimon have pushed for stricter language limiting stablecoin yield, while Solomon told Politico he wants the legislation to advance despite open points of debate.
The bill’s next step remains uncertain. Republicans are circulating revised text that keeps the market-structure framework while adding disputed ethics provisions, and supporters are hoping for a Senate vote before the August recess, according to the report.
This story draws on original reporting from Decrypt.
