What are the biblical arguments for the two major views on baptism?

Baptists point to Acts 2:38 (cited above). When the crowds ask what to do, Peter gives a clear order: [FIRST] Repent, [THEN] each one of you be baptized…” Regarding the Covenantal emphasis on “and your children” (2:39), baptists note that Peter goes on: “...and your children, and for all you are far away, as many as the Lord our God will call to himself.” Obviously “those far away” wouldn’t be able to be baptized right away like the children, so Peter is describing a future hope: the promise is now available to your children [when they come to believe], and anyone else who comes in faith. Also, The Great Commission of Matthew 28:18-20, in which Jesus says to make disciples by baptizing and teaching them to obey everything I’ve commanded. Baptists ask: how could an infant learn to obey everything Jesus has commanded? Likewise, every detailed record of baptism Peter baptized Cornelius and his friends in Acts 10 only after they’d demonstrated evidence of their conversion, just as Paul baptized Lydia and the Philippian jailer (Acts 16) after they demonstrated evidence. Furthermore, proponents of this view say that the work of Jesus changed the nature of inclusion in God’s people: before, you were a member of God’s people by being a descendent of Abraham. Through Christ, you become a member of God’s people by virtue of faith and faith alone.

The Covenantal position also points to Acts 2:38, but emphasizes 2:39, taking Peter’s words “and your children” to mean these people who’ve come to faith in Christ should immediately share God’s promised Holy Spirit with their children. Peter is affirming the long-standing biblical theme that God treats the offspring of his people as members of his people (for example: Jer 32:38-40; Isa 59:21; Ezek 37:24-26; Luke 1:17; ps 102:28). This is why Abraham was to circumcise all his male offspring, and why the blessings and curses in the 10 commandments extend to children. From Genesis to Revelation, God deals with his people as units: communities, households, nations, churches. Paul is convinced that the children of even one believing parent are “holy” (1 Cor 7:14), which is another way to say, set apart as members of God’s people. Furthermore, covenantal baptists argue that baptism is, for believing Gentiles, equivalent to circumcision for ethnic Jews: it is the physical sign of God’s promise to us, his promise of redemption and salvation. For the Jew, circumcision pointed them back to the promises to Abraham, to bless him and multiply him so that his offspring would be blessed and a blessing to the nations of the earth. Jesus, however, tells his followers to make disciples of the Gentiles not by circumcising them, but by baptizing them. Covenantal baptists joyfully affirm that someone who is old enough and able to understand should confess, repent, and submit to Christ first before being baptized. But if that person has young children, why would they join the kingdom of the good and gracious king and leave their kids to fend for themselves in the kingdom of darkness? For this reason, when household leaders came to faith - such as Lydia or the Philippian jailer in Acts 16, their whole household was baptized. For someone who holds the covenantal view, this would be common sense, regardless of the age of those in the household.