Goldman Sachs chief executive David Solomon publicly endorsed the Clarity Act on Wednesday, breaking with other major Wall Street bank leaders who have opposed provisions of the crypto market-structure bill over concerns about stablecoin regulations.

Solomon told reporters and lawmakers that the legislation would create a more stable regulatory framework for digital assets in the United States, even as lobbyists for the banking industry have argued that the bill's stablecoin rules would create unfair competition by allowing non-bank issuers to operate with lighter oversight.

The Clarity Act, which has been working its way through Congress, aims to define which federal agencies regulate cryptocurrencies and establish a pathway for exchanges and token issuers to register with the government. The legislation has drawn support from the crypto industry but faces a narrowing window for passage before Congress breaks for its summer recess.

Solomon's stance reflects Goldman Sachs' deepening involvement in digital assets. The firm has operated a crypto trading desk since 2021 and has advised clients on blockchain-based tokenization projects. Other major banks, including JPMorgan Chase and Bank of America, have resisted aspects of the bill, fearing that loosely regulated stablecoins could undermine traditional deposit-taking institutions.

Congressional aides said Solomon's endorsement could influence moderate lawmakers who have been undecided on the legislation. The bill's sponsors have indicated they may seek to address some banking-industry concerns through amendments, though time is running short before the August recess.

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