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Goldman Sachs CEO backs the Clarity Act amid stablecoin yield fight

The endorsement puts a major bank on the pro side as Senate Republicans advance the bill, which critics say could steer money away from insured bank deposits via stablecoin yield provisions.

Reported · Written up by our desk · Market Structure

Goldman Sachs CEO David Solomon has endorsed the Clarity Act, a crypto market structure bill moving through the U.S. Senate, taking a position that separates the bank from other major institutions that oppose the measure, according to Bitcoin Magazine.

Solomon said he supports advancing the bill to put market structure in place and help innovation proceed, adding that the proposal aims to create a more level playing field to enhance market stability and allow the markets to develop appropriately.

The bill’s momentum comes as Senate Republicans circulate new text ahead of a potential floor vote, while banking opponents intensify their pushback. Opposition has included JPMorgan chief Jamie Dimon, who has said the firm would fight the bill and previously criticized Coinbase CEO Brian Armstrong over industry lobbying, the outlet noted.

A central dispute involves a stablecoin yield provision that would affect the rewards crypto platforms can pay users for holding dollar-pegged tokens. Commercial and community banks and six major banking trade groups, including the American Bankers Association, warned that the language could pull deposits from insured accounts and reduce local lending, while investment banks like Goldman have focused on other parts of the bill, Bitcoin Magazine reported.

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