Goldman Sachs CEO Backs CLARITY Act Amid Senate Divisions Over Crypto Bill

Goldman Sachs CEO David Solomon has thrown his weight behind the CLARITY Act, a bill aimed at regulating the digital asset market. Speaking to lawmakers, Solomon stated that the act would provide market stability and encourage regulated financial institutions to enter digital asset markets.

The CLARITY Act has been making its way through Congress, with the House previously passing it and the Senate Banking Committee advancing their version in May. The latest draft of the bill has faced opposition from some senators, who argue that it lacks strong ethics safeguards for elected officials and their families.

Solomon acknowledged that the legislation is imperfect but argued that it would create a level playing field, improve market stability, and allow digital asset markets to develop within a clearer federal framework. He noted that regulated institutions that have remained on the sidelines would be able to participate more actively in the digital asset market.

The bill would establish federal rules for digital asset intermediaries and clarify responsibilities divided between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). It would also address stablecoin rewards, which some argue could drain deposits from traditional banks and restrict lending.