Goldman Sachs (GS.US) CEO backs CLARITY Act, rare support for traditional finance sparks controversy

According to Woofun AI, Goldman Sachs (GS.US) Chairman and CEO David Solomon publicly supported the Digital Asset Market Clarification Act (CLARITY Act), a move extremely rare among traditional financial business leaders. Solomon acknowledged that the bill was imperfect, but emphasized that its core is to create a level playing field and enhance market stability, and aims to establish a regulatory framework for the crypto industry.

This endorsement from Wall Street giants is in stark contrast to most opposition voices in the industry, and highlights the deep differences between traditional financial institutions in choosing a regulatory path.

Republican members of the US Senate announced the text of the bill on Wednesday, and the moral code provisions contained in it became the focus of the political game. The provisions have raised strong concerns among Democrats due to US President Donald Trump's investment behavior in the cryptocurrency sector. As of Thursday, the Senate leadership had not scheduled a specific voting schedule.

According to Woofun AI, the key variable in the current legislative process is the acceptance of moral provisions, which directly affects the viability of cross-party cooperation and brought to a standstill the rapid progress originally anticipated.

JPMorgan Chase (JPM.US) Chairman Jamie Dimon expressed a very different opinion in an interview in May. He criticized the bill for allowing cryptocurrency companies to pay interest or yield on stablecoins without giving them the same standard of protection as traditional financial institutions. Dimon made it clear that this kind of double standard would never be accepted by the banking system, believing that it undermines the fairness of the financial system.

This position represents the traditional banking industry's vigilance against the expansion of decentralized finance. The fundamental differences between the two sides over the logic of stablecoin regulation have formed the main obstacle to advancing the bill.

Although the bill is expected to be voted on soon, Republicans need to seek support from some Democrats to reach the 60 vote threshold. Massachusetts Senator Elizabeth Warren harshly criticized the bill, pointing out that it handed over enforcement responsibilities to the US Department of Justice rather than state authorities, and even protected the president's profit interests in the cryptocurrency sector, preventing Trump from being held accountable. Warren believes that the bill cannot fully protect investors, the financial system, and national security, and should not be considered for passage from the beginning. This is a sign of another legislative impasse following the blocking of several previous crypto regulation proposals.