Goldman Sachs CEO David Solomon has thrown his support behind the CLARITY Act, arguing that the crypto market structure bill could provide clearer rules for digital assets and create a more stable environment for the industry. His position differs from several major banking executives who remain concerned about key stablecoin provisions in the legislation.

Solomon acknowledged that the bill is not perfect and that lawmakers can debate various aspects of it, but he said one of its most important features is the creation of a more balanced regulatory framework that could improve market confidence and support responsible growth.

In an interview with Politico, Solomon said he favors moving the CLARITY Act forward because establishing clear market rules would help accelerate innovation in the digital asset sector.

His comments came as Republican senators shared updated versions of the legislation ahead of a potential Senate vote, signaling further progress toward establishing long-awaited crypto market structure regulations.

The Goldman Sachs chief’s backing contrasts with criticism from other prominent banking leaders, including JPMorgan Chase CEO Jamie Dimon, who has raised concerns about the bill’s approach to stablecoin products that offer rewards or yields.

Dimon has argued that allowing crypto companies to provide yield-generating stablecoins could place traditional banks at a disadvantage by enabling firms to offer deposit-like products without facing the same regulatory obligations.

Speaking in May, Dimon said he objected to provisions that could allow stablecoin issuers to provide returns on customer funds without the protections required in traditional banking.

He added that banks would not support the legislation under those conditions and warned that such an imbalance could create risks for the broader financial system.

JPMorgan has also called on lawmakers to close regulatory gaps, arguing that companies offering products similar to bank accounts should be held to comparable standards for oversight and consumer protection.

The issue of stablecoin rewards has become one of the biggest points of disagreement in negotiations over the CLARITY Act. Coinbase CEO Brian Armstrong has claimed that banks are seeking restrictions on stablecoin rewards because these products could compete with traditional deposit-based business models. Bank executives, meanwhile, argue that crypto firms offering similar financial services should follow equivalent regulatory requirements.

Solomon’s comments are consistent with his previous criticism of overly restrictive regulation. Earlier this year, he warned that excessive rules could reduce investment and limit economic activity.

While supporting stronger oversight, Solomon emphasized that regulations should be designed carefully to protect markets without slowing innovation.

The CLARITY Act is intended to create a comprehensive regulatory framework for digital assets by clarifying the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Negotiations continue over remaining issues, including stablecoin rules, investor protections, and regulations for yield-bearing crypto products.