Donald Trump Pressures Banks as GENIUS Act and CLARITY Act Stall in Stablecoin Showdown
Tensions between traditional finance and the digital asset sector escalated Tuesday after Donald Trump accused U.S. banks of trying to derail landmark crypto legislation.
In a post on Truth Social, Trump said the GENIUS Act — the first federal framework designed to guide stablecoin issuers — is being “threatened and undermined” by banking interests. His remarks come as Congress continues debating broader market structure reforms that would define how cryptocurrencies are regulated in the United States.
At the center of the dispute is the treatment of yield-bearing stablecoins. Banking groups have argued that allowing stablecoin issuers to offer rewards could siphon deposits away from traditional institutions, which are currently reporting record profits. Crypto advocates, meanwhile, contend that Americans deserve higher returns and more competition in financial services.
Trump framed the issue as urgent, warning that delays in passing comprehensive legislation could push innovation overseas. He urged lawmakers to finalize the CLARITY Act — formally known as the Digital Asset Market Clarity Act of 2025 — which would divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The CLARITY Act previously cleared the House with bipartisan backing and now sits in the Senate, where separate drafts have been advanced by the Banking and Agriculture committees. The split versions reflect ongoing disagreements over regulatory authority and stablecoin mechanics.
Behind the scenes, banking representatives have reportedly proposed revisions to the GENIUS Act, particularly targeting provisions related to stablecoin rewards. Industry sources suggest those changes were submitted without significant engagement from the White House or crypto stakeholders prior to Trump’s public criticism.
The debate intensified further on Monday when Jamie Dimon, CEO of JPMorgan Chase, called for stablecoin yields to face regulatory standards similar to those imposed on banks, emphasizing the need for what he described as a level playing field.
Meanwhile, congressional leaders signaled potential paths forward. Representative French Hill suggested the Senate could adopt the House’s broader framework to accelerate progress. Senator Cynthia Lummis, a vocal crypto advocate, echoed Trump’s urgency, stating that the United States cannot afford to delay action.
With negotiations ongoing and political pressure mounting, the future of U.S. crypto regulation now hinges on whether lawmakers can bridge the divide between Wall Street and the rapidly evolving digital asset industry.