Bitcoin has seen its brief rally stall this week, with the sudden oil price surge and a sell-off in technology stocks weighing on crypto even as the Federal Reserve could be about to throw “rocket fuel” on the market.
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The bitcoin price is hovering at around $65,000 per bitcoin, up almost 15% from its recent lows but still down by more than 50% from its October peak.
Now, as traders eye a $27.9 trillion game-changer, Goldman Sachs chief executive David Solomon has revealed he’s “very supportive” of moving the crypto market structure bill known as the Clarity Act forward, something that has been called the “ultimate” bitcoin price catalyst, predicted to spark a new bitcoin price bull market.
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Goldman Sachs chief executive David Solomon has said he backs the crypto market structure Clarity Act—something that’s predicted to send the bitcoin price soaring.
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“The Clarity Act—like all legislation—is not perfect. And there are lots of things that you could debate and argue about. But I think one of the most important things that it does is that it creates a level playing field to enhance market stability and allow these markets to develop appropriately,” Solomon told Politico, adding that it will allow “regulated institutions that have been on the sidelines to participate more actively … I think that’s the most important thing.”
The Clarity Act, a key piece of president Donald Trump’s crypto agenda, would give legal backing to crypto trading and broader use in the U.S. for the first time, classifying most major cryptocurrencies beyond the jurisdiction of the Securities and Exchange Commission (SEC).
The traditional banking industry and Wall Street have largely opposed the bill due to its provision that would allow interest-like rewards to be paid out to accounts that hold stablecoins, which the banks claim could undermine them as deposits move to crypto platforms.
Solomon’s break with the rest of the traditional finance world could signal acceptance from the banking industry that the bill will pass sooner or later. While a majority of prediction market traders doubt the Clarity Act will become law this year, almost 70% of them are betting it will before the beginning of 2028.
“Goldman Sachs’s position is that we believe strongly that we need one system where everybody can participate,” Solomon said. “As we move forward, there’ll be other things that need to happen. But this is a step in the right direction.”
Earlier this week, the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, Independent Community Bankers of America and National Bankers Association said in a joint statement that Clarity’s stablecoin provision poses a risk to “the local lending that drives economic activity.”
JPMorgan chief executive Jamie Dimon has been one of the loudest critics of the bill, warning it would put traditional banks at a competitive disadvantage by allowing crypto companies to offer yield-bearing stablecoin accounts that resemble bank deposits without being subject to the same regulatory restrictions.
While the Clarity Act looks headed for a full Senate vote next week, Democratic Party lawmakers have roundly said they think it doesn’t go far enough in preventing U.S. federal officials, including Trump, from issuing or sponsoring any cryptocurrencies.
Senator Ruben Gallego, a Democrat from Arizona, said this week that the White House-approved ethics provision was “not a serious effort,” but that he will try to work with senator Thom Tillis and other Republicans on a counterproposal. “We are still in this fight,” Gallego told Politico. “We are going to send back language.”
However, bitcoin price and crypto market watchers remain unconvinced that the legislation will support prices in the short term.
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The bitcoin price has dropped sharply this year, with traders weighing whether there are more declines to come or if the bitcoin price has hit a bottom.
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“Bitcoin is back around $65,000 after a quick run at $67,000 on Treasury secretary Scott Bessent’s line that the Clarity Act was at the “1-yard line,” Ryan Kirkley, chief executive of Global Settlement, said in emailed comments.
Earlier this week, Bessent declared lawmakers were at the “1-yard line” for the Clarity Act, spurring the bitcoin price and the wider crypto market higher.
“The market clearly wants regulatory progress, but that optimism is fighting higher oil prices, geopolitical risk and the prospect of higher-for-longer rates. Clarity would give institutions the confidence to move into digital assets. The catch: the market will not fully price it until Congress actually delivers,” Kirkley said, adding he believes the Clarity Act “has a near zero chance of passing, which poses an existential risk to crypto prices as this becomes a consensus opinion.”