CLARITY Act divisions widen over stablecoins and Trump ethics

For crypto investors, the latest CLARITY Act draft matters because it shows how hard it will be to get a US market-structure bill through the Senate, even with support from parts of Wall Street and the crypto industry.

Goldman Sachs CEO David Solomon said he supports moving the bill forward, breaking with major banking groups that want tougher limits before it advances. Bank trade groups warned that allowing interest-like rewards on stablecoin holdings could pull deposits away from banks and weaken lending for mortgages, small businesses, and agriculture. That dispute has become a central fight as stablecoins expand into payments and settlement.

The bill is also exposing a political split inside crypto. Cardano founder Charles Hoskinson backed Sen. Elizabeth Warren's view that a sitting president should not participate directly in crypto markets. He argued that crypto policy has become too partisan and said President Donald Trump should stay out of the market while in office. Hoskinson did not reject the broader bill, but his comments show that support for federal crypto rules does not mean support for Trump's personal crypto interests.

The path forward remains narrow. Seven Democratic senators said the revised draft still needs stronger rules on ethics, consumer protection, illicit finance, conflicts of interest, and market integrity. Republicans need Democratic votes to reach the 60-vote threshold, and Senate leaders do not expect the bill to pass before the August recess.