The revised CLARITY Act, which would bar the president and other federal officials from issuing or sponsoring digital assets, picked up a notable supporter this week: Goldman Sachs CEO David Solomon. His public backing puts him at odds with other banking groups that are warning the legislation's approach to stablecoin rewards could drain deposits from the banking system.
Goldman Sachs goes its own way
Solomon's support for advancing the CLARITY Act stands out because most banking trade groups — including the American Bankers Association and the Bank Policy Institute — have come out against the bill. They argue that allowing stablecoin rewards would siphon deposits away from banks and ultimately reduce lending. Goldman Sachs itself has been exploring tokenized deposits, stablecoins, and blockchain settlement, signaling a different strategy from many of its peers.
Stablecoin rewards become the fault line
The dispute over stablecoin rewards is the main fault line between banks and crypto companies. JPMorgan Chase CEO Jamie Dimon has also raised concerns about the regulatory framework for stablecoins, though he hasn't taken a public position on the CLARITY Act specifically. Banking groups warn that if stablecoin issuers can offer rewards, they'll pull deposits out of traditional banks, shrinking the pool of money available for loans.
An unlikely alliance on presidential involvement
Cardano founder Charles Hoskinson sided with Senator Elizabeth Warren on the issue of President Trump's involvement in crypto markets. Hoskinson argued the president should not be a market participant, echoing Warren's long-standing criticism. He also blamed the Trump administration's handling of crypto policy for making the legislation more partisan. That puts Hoskinson in a rare moment of agreement with a senator who has been one of crypto's toughest critics.
The legislative path ahead
The revised CLARITY Act now heads to committee, where the fight over stablecoin rewards and presidential involvement is expected to dominate. With Goldman Sachs on one side, most banking groups on the other, and crypto figures like Hoskinson breaking with the administration, the bill faces an uncertain road.
