Goldman Sachs Backs Crypto Bill, Splitting Wall Street Banks

A major crypto rulebook is causing a big fight among America's biggest banks.

Goldman Sachs — one of the largest banks on Wall Street — has come out in support of a new law called the Clarity Act. This is a bill (a proposed law being debated in the U.S. Senate) that would create clear rules for the crypto market. Goldman's CEO, David Solomon, admitted the bill isn't perfect but said it would help create a fair, stable market.

But not everyone agrees. JPMorgan's boss Jamie Dimon has "declared war" on the bill. The split comes down to how each bank makes money.

What's the fight really about?

The main argument is over stablecoin yield. Let's break that down:

• A stablecoin is a type of crypto token designed to always be worth $1 (it's "pegged" to the dollar).
• Yield means the rewards or interest crypto platforms could pay people for holding these tokens.

Regular banks worry that if crypto platforms pay these rewards, people will pull their money out of normal bank accounts — meaning less money for banks to lend to local businesses.

Why does Goldman support it?

Goldman relies less on everyday customer deposits, so this worry doesn't hit them as hard. Goldman also has a growing interest in crypto:

• It holds a $1.1 billion position in a spot bitcoin ETF (a fund that lets investors bet on bitcoin's price without owning it directly).
• It called these funds an "astonishing success."

The bill still faces big hurdles. Some Republican senators share the banks' fears. There are also ethics concerns — the bill would ban government officials from issuing crypto, but Democrats say it's too weak. Notably, President Trump and his family reportedly made over $1 billion from crypto in the past year.

The bottom line: Senate leaders want a vote soon, possibly within the coming week. That vote could decide whether the bill survives or dies — with Wall Street deeply divided over the outcome.

This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/news/goldman-sachs-backs-the-clarity-act