President Trump Demands Action as Banks Slow Crypto Legislation
- Trump accuses banks of blocking the GENIUS Act and delaying the CLARITY Act over stablecoin reward disputes.
- Senate debates focus on whether yield-bearing stablecoins threaten traditional banking models.
- Analysts say delays risk derailing broader crypto reform, though mid-2026 passage remains possible.
President Donald Trump publicly accused U.S. banks of obstructing major crypto legislation. Writing on Truth Social, he urged Congress to advance the GENIUS Act and the CLARITY Act without delay. The remarks came in Washington after weeks of stalled negotiations over stablecoin rules and market structure, despite White House-led talks.
Trump Targets Banks Over GENIUS and CLARITY Acts
Trump said banks are undermining the GENIUS Act while holding the CLARITY Act “hostage.” He argued that delays threaten U.S. leadership in digital assets. According to Trump, banks are posting record profits while resisting reforms tied to crypto market structure.
He added that Americans should earn more from their money. However, he claimed banks oppose stablecoin reward programs for that reason. Trump warned that failure to act could push crypto innovation toward China and other countries.
The White House has facilitated negotiations between banks and crypto firms. Those talks, led by White House crypto adviser Patrick Witt, extended beyond an informal March 1 deadline. The central dispute remains whether stablecoin issuers can offer yield-based rewards.
Divisions Inside Crypto and Banking Sectors Persist
Despite Trump’s push, Senate support remains uncertain. Lawmakers continue debating whether stablecoin rewards could disrupt traditional banking. Banking groups want strict limits, while crypto firms seek flexibility.
Notably, divisions also exist within the crypto industry. Charles Hoskinson criticized the CLARITY Act’s current language. He argued it risks classifying most digital assets as securities. His comments again targeted Brad Garlinghouse, who supports advancing the bill.
In response, David Schwartz said a flawed bill remains better than none. Meanwhile, Mike Selig called for immediate passage. In an X post, he said the Commodity Futures Trading Commission stands ready to implement the CLARITY Act.
Senate Outlook Unclear as Pressure Builds
According to TD Cowen executive Jaret Seiberg, banks may ultimately lose the stablecoin debate. However, he warned prolonged talks could derail the broader bill.
JPMorgan analysts project CLARITY could pass by mid-2026. For now, lawmakers await a Senate markup session expected later this month.
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