Goldman Sachs CEO backs imperfect CLARITY Act ahead of vote
Goldman Sachs CEO backs the Digital Asset Market Clarity (CLARITY) Act even while calling it "not perfect," arguing the US crypto market structure bill would create a level playing field and enhance market stability as a Senate vote is expected soon.
Key Takeaways
- Goldman Sachs chair and CEO David Solomon supports the CLARITY Act despite calling the crypto market structure bill imperfect.
- Solomon says the measure would create a level playing field and help these markets develop appropriately.
- Many banks oppose stablecoin yield rules that could let crypto firms pay interest outside standard bank protections.
- Republicans released updated text Wednesday; Democrats say ethics provisions and Justice Department-only enforcement fall short.
- As of Thursday, Senate leaders had not scheduled a vote, and a 60-vote threshold likely needs Democratic support.
What did the Goldman Sachs CEO say about the CLARITY Act?
According to a Thursday Cointelegraph report citing Politico, David Solomon said the CLARITY Act — like all legislation — is not perfect, and that there are plenty of points lawmakers could debate.
He argued one of its most important effects is creating a "level playing field to enhance market stability and allow these markets to develop appropriately." Solomon stands out among major traditional finance chiefs in publicly backing the legislation now before Congress.
Why are banks and Democrats still resisting the bill?
Financial companies remain hesitant over stablecoin provisions. JPMorgan Chase CEO Jamie Dimon said in a May interview that CLARITY would let crypto companies pay interest on stablecoins "without the protection that they should have," something banks would not accept.
Ethics rules are another flashpoint. The latest Senate draft made public Wednesday would prohibit the president, vice president, members of Congress, other senior federal officials and their spouses from issuing or sponsoring digital assets while in office, and would prevent platforms from listing such assets. Restrictions would expire in 2029, though covered officials could still own cryptocurrencies.
Democrats argue enforcement left mainly with the US Justice Department — rather than state attorneys general — is too weak. Seven Democratic senators said Wednesday that the Republican proposal "falls short" on ethics, consumer protection, illicit finance, conflicts of interest and market integrity. Senator Elizabeth Warren called the bill "dead on arrival," claiming it shields the president's crypto profits and fails to protect investors, the financial system and national security.
When could the Senate vote, and what still blocks a deal?
Republican lawmakers released the CLARITY Act text Wednesday ahead of a potential Senate vote, but leaders had not set a date as of Thursday. Passing the bill will likely require Democratic votes to clear the 60-vote threshold.
Both parties say they want clearer US crypto market structure rules, yet the ethics fight — including who enforces them — has become the biggest obstacle. Senator Angela Alsobrooks said negotiators were "fairly close," while warning she will not support floor legislation without ethics provisions. Industry voices similarly urge a compromise rather than no bill at all. For ongoing coverage, see BlasterPost's Fintech & Crypto Alerts.