Trump Criticizes Banks Over Obstruction of Stablecoin Regulation Framework
President Donald Trump warned that delays in advancing stablecoin and broader crypto legislation could shift U.S. competitive advantages to China, accusing banks of resisting provisions that allow yield on stablecoins under the GENIUS Act framework.
President Donald Trump criticized U.S. banks for allegedly undermining the GENIUS Act and obstructing progress on crypto market structure legislation, urging Congress to accelerate its passage. He warned that continued delays could erode the United States’ competitive edge and benefit China. Banks are reportedly opposing provisions that would allow yield on stablecoins, arguing such measures could impact traditional deposit models. The dispute centers on whether stablecoin holders should be permitted to earn interest-like returns under the regulatory framework established by the GENIUS Act, as negotiations among lawmakers, regulators and industry participants continue.
- Clarity Act: Proposed U.S. crypto market structure legislation intended to define regulatory oversight and establish clearer rules for digital asset markets.
- GENIUS Act: Stablecoin legislation signed into law aimed at creating a regulatory framework for stablecoin issuance and related activities in the U.S.
- Stablecoin yield: Interest or returns offered to holders of stablecoins, often through exchanges or third parties, similar to earning interest on deposits.