Trump Supports CLARITY Act as Banks Challenge Stablecoin Safeguards

  • Former President Donald Trump supported the Digital Asset Market Clarity Act, which would establish federal rules for U.S. digital assets and stablecoins.
  • Eight banking groups challenged stablecoin reward provisions and anti-disintermediation safeguards, while Patrick Witt cited yield caps and breakers and said deposits grew despite rewards.
  • Revised Blockchain Regulatory Certainty Act language removed clear Section 1960 protection for noncustodial developers, while retaining protections against licensing-based money-transmitter prosecutions.

Former President Donald Trump has expressed support for the Digital Asset Market Clarity Act, a Senate Republican-backed bill intended to establish federal rules for digital assets and stablecoins in the United States. Eight banking groups urged Senate leadership to revise anti-disintermediation safeguards, arguing they could activate only after substantial deposit outflows and leave loopholes for interest-like rewards on stablecoin balances. White House crypto advisor Patrick Witt disputed concerns about deposit flight, citing the bill's yield caps and breakers and saying deposits grew despite stablecoin rewards. The revised Blockchain Regulatory Certainty Act language removes clear Section 1960 criminal-liability protection for noncustodial developers, although it continues to make prosecutions based solely on missing money-transmitter licenses or registrations more difficult. Coin Center called the compromise substantive regulatory progress while warning that broader allegations involving knowingly transmitted criminal proceeds remain possible. Supporters say the CLARITY Act could provide a more durable institutional foundation for U.S. crypto policy, while its passage, Federal Reserve signals and mixed Bitcoin futures movements remain important to market expectations.

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