Eric Trump Slams Big Banks Over Stablecoin Yield Debate as Crypto Bill Talks Continue
Eric Trump, son of U.S. President Donald Trump and co-founder of crypto firm World Liberty Financial, has criticized the traditional banking sector for pushing back against proposals that would allow stablecoins to offer yield to users.
In a post on the social platform X, Trump claimed that large financial institutions are actively lobbying lawmakers to prevent Americans from accessing higher returns through crypto-based savings products.
According to Trump, major banks—including JPMorgan Chase, Bank of America, and Wells Fargo—are working behind the scenes to block stablecoin yield provisions in pending crypto legislation.
He argued that banks typically provide minimal interest on savings accounts while benefiting from higher returns on funds held with the Federal Reserve.
Trump suggested that crypto platforms offering stablecoin yields in the range of 4% to 5% threaten the traditional banking model, potentially encouraging consumers to move deposits away from banks.
Stablecoin legislation at the center
The debate centers around provisions in the proposed Clarity Act, which is intended to establish a regulatory framework for digital assets in the United States. Banking groups, including the American Bankers Association, have reportedly pushed for limits on stablecoin yield products, arguing they could create risks for the financial system.
Trump accused bank lobbyists of spending heavily to influence lawmakers and frame restrictions as necessary for financial stability. He argued that the real motivation is protecting banks’ ability to maintain low interest rates for retail customers.
Ties to World Liberty Financial
The issue is particularly relevant to Trump’s own crypto venture, World Liberty Financial, which has launched a stablecoin called USD1.
The company is also pursuing a banking charter through the Office of the Comptroller of the Currency, which would potentially allow it to operate under federal banking supervision.
Political pressure builds around the bill
The debate intensified after Donald Trump publicly called on lawmakers to move forward with the Clarity Act, echoing criticism of banks for resisting stablecoin yield provisions during negotiations.
His comments came shortly after a meeting with Brian Armstrong, the chief executive of Coinbase. Earlier this year, Armstrong withdrew the company’s support for the legislation, citing concerns about sections related to stablecoins and other regulatory provisions.
Meanwhile, debate over how stablecoin issuers should be regulated has intensified. Jamie Dimon recently argued that companies issuing stablecoins should be supervised in a manner similar to traditional banks, a view that some policymakers and crypto advocates dispute.
The ongoing negotiations highlight the growing clash between the crypto industry and established financial institutions as lawmakers attempt to finalize a framework for digital assets in the U.S. financial system.