Goldman Sachs CEO David Solomon has backed the CLARITY Act even as seven Senate Democrats oppose its latest draft and banking groups fight stablecoin rewards rules.
summary
- David Solomon supports the development of the CLARITY Act despite concerns from banking groups regarding stablecoin rewards.
- Seven Senate Democrats oppose the latest draft on ethics and consumer protection provisions.
- Republicans still need Democratic votes to cross the 60-vote threshold in the Senate.
POLITICO I mentioned That Solomon was “very supportive” of moving the bill forward so that the United States can create a structure for the cryptocurrency market and promote the development of digital assets. Although he acknowledged that the proposal was incomplete and open to debate, the Goldman chief argued that passing a framework remained more important than resolving every disagreement first.
Solomon told the publication that the legislation could create a level playing field, enhance market stability and allow digital asset markets to develop under clearer rules. His endorsement puts the head of one of Wall Street’s largest banks alongside cryptocurrency executives who have urged Congress to complete the bill, even as banking trade groups seek tougher limits on stablecoin rewards.
These comments separate Goldman’s public position from the campaign led by banking associations against the current project. Solomon did not directly support the bonus provisions, but his support for moving forward with full legislation contrasts with groups warning that the text could take away deposits from traditional lenders.
Stablecoin rewards keep the banks at bay
Under the latest Republican draft, cryptocurrency companies can offer rewards tied to customer activity, while payments on stablecoins held in dormant balances will remain prohibited. Banking associations argue that this distinction allows cryptocurrency platforms to compete for deposits through incentives, creating the risk of funds moving away from community banks.
In a May letter to leaders of the Senate Banking Committee, several banking trade groups called for stronger safeguards against deposit runs. Groups Argue Money leaving banks for stablecoin products could reduce the credit available to households and businesses, especially in communities that rely on small lenders.
JPMorgan CEO Jamie Dimon has too He criticized the legislationAdding a prominent voice on Wall Street to the industry’s objections. So Suleiman’s support does not indicate that the banks have reached an agreement; It shows that top executives disagree about whether a bonus dispute should stop the bill.
Earlier this week, the U.S. Hispanic Chamber of Commerce sent a letter to Senate leaders supporting the banks’ concerns. The USHCC warned that deposit losses could hurt small business lending, community development and economic opportunities in Hispanic communities. It also pointed to analyzes that, according to the chamber, showed net outflows associated with cryptocurrency activity at community banks.
Republican concerns have resurfaced despite a settlement negotiated earlier in 2026. Punchbowl News reported that Sens. John Curtis and John Cornyn shared banks’ concerns about deposit runs, while Sen. Thom Tillis opposed the existing ethics provision. Their objections add to internal Republican pressure as party leaders seek enough votes to pass the measure.
Democratic resistance prevents easy voting
Seven Democratic senators, Catherine Cortez Masto, Angela Albrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner, and Raphael Warnock, rejected the latest text while keeping negotiations open. In a Joint statementProvisions covering ethics, consumer protection, illicit finance, conflicts of interest and market integrity require more work, they said.
Elizabeth Warren, a member of the Senate Banking Committee, also criticized the draft, arguing that its ethics language did not adequately address President Donald Trump’s business interests. Warren also stressed that the bill lacks adequate protection for investors and national security.
Republicans added restrictions on cryptocurrency activity by top elected officials after Democrats made an ethics clause a condition of continuing talks. Trump I accepted the ruling earlier this week, but the agreement left implementation to the Justice Department and failed to resolve Democrats’ concerns.
Albrooks objected to making the Department of Justice the sole enforcer and called the arrangement “not serious,” according to reports cited by crypto.news. She said she would oppose the legislation if its wording reached the Senate floor unchanged. Her position carries extra weight because she was one of two Democrats who helped advance the bill through the Senate Banking Committee in May.
Democratic resistance has arisen Reducing the bill’s estimated odds of passing in 2026 Down 15 percentage points from its peak on July 21, according to crypto.news. Republicans need Democratic support to reach the 60-vote threshold in the Senate, leaving Solomon, Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong pressing lawmakers to act before the August recess.
Garlinghouse supported a similar argument from Stuart Alderotti, Ripple’s chief legal officer, on July 22. Description of the law of clarity As a consumer protection measure that would strengthen anti-money laundering and customer verification rules while giving law enforcement and state authorities clearer tools against misconduct.
With votes still short, Goldman’s endorsement gives the legislation another strong backer but does not resolve either of the two disputes blocking a deal in the Senate.
