Goldman Sachs splits from banking lobby over the CLARITY Act

Goldman Sachs CEO David Solomon has backed the CLARITY Act even as seven Senate Democrats oppose its latest draft and banking groups fight its stablecoin reward rules.

Politico reported that Solomon was “very supportive” of moving the bill forward so the United States could establish a crypto market structure and advance digital asset development. Although he acknowledged that the proposal was imperfect 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, strengthen market stability and let digital asset markets develop under clearer rules. His endorsement places the head of one of Wall Street’s largest banks alongside crypto executives who have urged Congress to complete the bill, even as banking trade groups seek tighter limits on stablecoin rewards.

The comments separate Goldman’s public position from the campaign led by banking associations against the current draft. Solomon did not directly endorse its reward provisions, but his support for advancing the full legislation contrasts with groups warning that the text could pull deposits from traditional lenders.

Stablecoin rewards keep banks opposed

Under the latest Republican draft, crypto companies could offer rewards tied to customer activity, while payments on stablecoins held in idle balances would remain prohibited. Banking associations argue that this distinction lets crypto platforms compete for deposits through incentives, creating a risk that money moves away from community banks.

In a May letter to Senate Banking Committee leaders, several banking trade groups called for stronger safeguards against deposit flight. The groups argued that funds leaving banks for stablecoin products could reduce credit available to households and businesses, particularly in communities that depend on smaller lenders.

JPMorgan CEO Jamie Dimon has also criticized the legislation, adding a prominent Wall Street voice to the industry’s objections. Solomon’s support therefore does not suggest that banks have reached an agreement; it shows that major executives differ over whether the reward dispute should stop the bill.

Earlier this week, the United States Hispanic Chamber of Commerce sent Senate leaders a letter 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 cited analyses that, according to the chamber, showed net outflows connected to crypto activity at community banks.

Republican concerns have resurfaced despite a compromise negotiated earlier in 2026. Punchbowl News reported that Senators John Curtis and John Cornyn shared the banks’ concerns about deposit flight, while Senator Thom Tillis opposed the current ethics provision. Their objections add internal Republican pressure as party leaders seek enough votes to pass the measure.

Democratic resistance blocks an easy vote

Seven Democratic senators, Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner and Raphael Warnock, have rejected the latest text while keeping negotiations open. In a joint statement, they said provisions covering ethics, consumer protection, illicit finance, conflicts of interest and market integrity required more work.

Senate Banking Committee Ranking Member Elizabeth Warren also criticized the draft, arguing that its ethics language did not adequately address President Donald Trump’s crypto business interests. Warren further maintained that the bill lacked sufficient investor and national security protections.

Republicans added restrictions on crypto activity by senior elected officials after Democrats made an ethics clause a condition for continuing talks. Trump accepted the provision earlier this week, but the agreement left enforcement to the Department of Justice and failed to settle Democratic concerns.

Alsobrooks objected to making the DOJ the sole enforcer and described the arrangement as “unserious,” according to reports cited by crypto.news. She said she would oppose the legislation if the language reached the Senate floor unchanged. Her position carries added weight because she was one of two Democrats who helped advance the bill through the Senate Banking Committee in May.

Democratic resistance has cut the bill’s estimated 2026 passage odds by 15 percentage points from their July 21 peak, according to crypto.news. Republicans need Democratic support to reach the Senate’s 60-vote threshold, leaving Solomon, Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong pressing lawmakers to act before the August recess.

Garlinghouse endorsed a similar argument from Ripple Chief Legal Officer Stuart Alderoty on July 22. Alderoty described the CLARITY Act 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 the vote count still short, Goldman’s endorsement gives the legislation another powerful supporter but does not resolve either dispute holding back a Senate agreement.