Goldman Sachs chief executive David Solomon has broken ranks with much of the US banking lobby by publicly backing the CLARITY Act, even as key industry groups and senior politicians on both sides of the aisle move to block its progress.
Solomon told Politico he was “very supportive” of pushing the cryptocurrency bill forward so that the United States can finally put in place a clearer market structure for digital assets. He accepted that the current draft is “not perfect” and open to debate, but argued that establishing a framework now is more important than ironing out every point of disagreement.
His stance puts the head of one of Wall Street’s largest banks on the same side as leading crypto executives who have urged Congress to complete work on the legislation. It also highlights a growing split within traditional finance, with powerful banking trade associations still lobbying hard against the bill’s provisions on rewards linked to stablecoins.
Stablecoin rewards at heart of banking lobby dispute
Under the latest Republican draft, crypto firms would be allowed to offer rewards tied to customer activity, but interest-like payments on stablecoins sitting in idle balances would remain banned. Banking associations argue that, in practice, the distinction would still allow crypto platforms to use incentives to compete for deposits that might otherwise stay in the traditional banking system.
In a letter sent in May to leaders of the Senate Banking Committee, several banking trade groups pressed for tougher safeguards against what they describe as “deposit flight”. They warned that money flowing from banks into stablecoin products could shrink the pool of funds available for loans to households and businesses, with particular risk for communities reliant on smaller, community-based lenders.
Solomon did not single out the rewards provisions for support, but his backing for advancing the full bill contrasts sharply with the trade groups’ push to tighten or block those elements. Banking associations have argued that the current text could divert deposits away from regulated institutions and weaken local credit provision.
JPMorgan chief executive Jamie Dimon has also criticised the legislation, adding another heavyweight Wall Street voice to the coalition against the present draft. Solomon’s intervention therefore underlines that major bank leaders are divided over whether concerns about rewards and deposits should be enough to halt the bill’s progress.
Community and minority groups join opposition
Resistance to the CLARITY Act is not limited to banking lobbies. Earlier this week, the United States Hispanic Chamber of Commerce wrote to Senate leaders backing the banks’ warnings over deposit flight.
The USHCC cautioned that losses of bank deposits could damage small-business lending, constrain community development and narrow economic opportunities in Hispanic communities. The organisation also pointed to analyses which it said showed net outflows linked to crypto activity at community banks, reinforcing fears about the impact on local credit markets.
Those concerns have re-energised Republican sceptics despite a compromise thrashed out earlier in 2026. Punchbowl News reported that Senators John Curtis and John Cornyn have echoed banks’ worries about deposits leaving the system, while Senator Thom Tillis has objected to the bill’s current ethics language. Their reservations have created additional internal pressure on Republican leaders as they hunt for enough support to clear the Senate.
Democratic scepticism over ethics and investor protection
On the Democratic side, seven senators – Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner and Raphael Warnock – have come out against the latest version of the text, though they have not walked away from talks.
In a joint statement, they said sections dealing with ethics, consumer protection, illicit finance, conflicts of interest and market integrity still need substantial improvement. They have demanded stronger safeguards before they will consider backing the bill.
Senate Banking Committee Ranking Member Elizabeth Warren has been particularly outspoken, arguing that the ethics provisions do not adequately address President Donald Trump’s crypto-related business interests. She has also said the bill, in its current form, fails to offer sufficient protection for investors or to safeguard US national security.
Republicans inserted new restrictions on crypto activity by senior elected officials after Democrats insisted on an ethics clause as a condition for continuing negotiations. Trump accepted the language earlier this week, but enforcement would rest solely with the Department of Justice – a compromise that has not satisfied Democratic critics.
Alsobrooks has objected to leaving enforcement entirely with the DOJ, reportedly calling the arrangement “unserious”, according to crypto.news. She has said she will oppose the bill if that section reaches the Senate floor unchanged. Her stance is especially significant because she was one of only two Democrats who helped advance the legislation through the Senate Banking Committee in May.
Passage odds fall as crypto executives lobby harder
The growing Democratic resistance has already reduced the bill’s estimated chances of passing in 2026 by 15 percentage points from their 21 July peak, according to figures cited by crypto.news. Republicans require Democratic votes to reach the 60-vote threshold needed to move the legislation through the Senate.
With time tight before the August recess, Solomon has joined Ripple chief executive Brad Garlinghouse and Coinbase chief executive Brian Armstrong in urging lawmakers to secure a deal. They argue that the United States risks falling behind other major markets if it continues to operate without a comprehensive legal framework for digital assets.
Garlinghouse on 22 July backed comments from Ripple Chief Legal Officer Stuart Alderoty, who has described the CLARITY Act as a consumer-protection measure that would strengthen anti-money laundering and customer-verification rules. Alderoty has argued the bill would give law enforcement agencies and state authorities clearer tools for dealing with wrongdoing in the crypto sector.
For now, Goldman Sachs’ high-profile endorsement adds another powerful name to the list of supporters but does not bridge the two main divides holding up a Senate agreement: the fight over stablecoin rewards and deposits, and the dispute over ethics and investor safeguards at the heart of the bill’s latest draft.
