Goldman Sachs CEO backs Clarity Act, breaking with peers

Goldman Sachs Chairman and CEO David Solomon expressed support for advancing the Clarity Act, placing his firm apart from many other large banks on the issue of stablecoin yield. He described the bill as ‘not perfect’ and called it a way to create ‘a level playing field to enhance market stability and allow these markets to develop appropriately.’

The Clarity Act would classify most crypto assets as non-securities, shift certain activities outside Securities and Exchange Commission oversight, protect decentralized software developers and address the practice of offering rewards on stablecoin balances.

Banking leaders, including JPMorgan Chase CEO Jamie Dimon, and a coalition of trade groups have pushed for stronger limits on returns paid on dollar-pegged stablecoins. They argue such rewards, which can exceed typical bank savings rates, could pull deposits from traditional lenders.

Executives at crypto firms oppose tighter limits. Coinbase CEO Brian Armstrong has argued restrictions would ‘kneecap’ a competitive product. Crypto platforms say stablecoin rewards are part of their product offerings and that clear rules would enable institutional participation.

The debate traces to provisions in last year’s legislation that recognized some forms of stablecoin rewards. Banking groups have lobbied lawmakers to close what they view as a regulatory gap in subsequent bills.

Senators circulated an updated 616-page draft that keeps the Clarity Act’s market framework while adding contested ethics provisions restricting certain cryptocurrency business activity by public officials and their families; the draft includes expiration dates and exceptions. With disputes over stablecoin yield and the ethics language unresolved, the bill’s path to a Senate vote before the August recess remains uncertain.

Supporters say the bill would reduce legal uncertainty and could draw more institutional players into crypto markets. Opponents say without clearer yield limits and enforcement mechanisms the legislation could allow regulatory arbitrage that disadvantages banks.