President Donald Trump has accused major banks of working to weaken the GENIUS Act and blocking progress on the CLARITY Act in order to safeguard their profits. His comments place him squarely in the middle of the growing debate over whether crypto platforms should be allowed to offer yield style rewards on stablecoins.
The dispute centers on concerns from traditional lenders that allowing such rewards could drive customers away from conventional deposit accounts.
Trump Responds to Banking Opposition
In a post on Truth Social, Trump described the situation as a threat to American financial innovation. He argued that the GENIUS Act was being undermined by banks and insisted that market structure legislation must be finalized quickly so Americans can earn more on their savings.
The GENIUS Act, enacted in July 2025, established the first federal regulatory framework for stablecoins but prohibited issuers from paying interest directly to token holders. However, it did not clearly address whether third party platforms such as Coinbase could share yield with users.
Banking groups have pushed lawmakers to close what they see as a gap through the CLARITY Act, a broader bill designed to define regulatory oversight for digital assets. Their lobbying created friction with parts of the crypto sector. In January, Coinbase chief executive Brian Armstrong withdrew support for the legislation ahead of a Senate markup, citing proposed changes that would block passive yield on stablecoins.
The White House set a March 1 deadline for stakeholders to reach an agreement, though no public compromise had been announced by that date. Trump urged banks to reach a deal with the crypto industry, saying cooperation would serve the best interests of the American public.
Earlier this year, Geoff Kendrick, global head of crypto research at Standard Chartered, warned that stablecoins could draw as much as 500 billion dollars in deposits away from banks by 2028, with regional lenders in the United States particularly vulnerable.
Crypto Leaders Applaud While Critics Push Back
Trump’s comments were welcomed by several figures in the digital asset industry. Brad Garlinghouse, chief executive of Ripple, described the remarks as a clear message about protecting the interests of Americans.
Senator Cynthia Lummis called on Congress to act swiftly to pass the measure. Eric Trump, who co founded World Liberty Financial, accused major banks of panicking over the prospect of losing ground in digital finance.
Not everyone in the crypto space agrees. Charles Hoskinson, founder of Cardano, criticized the proposal harshly, arguing that its regulatory structure would automatically classify new projects under Securities and Exchange Commission oversight and push innovation abroad. He warned that while established tokens might be protected, future American crypto ventures could struggle under the framework.
His position contrasts with Garlinghouse’s view that regulatory clarity is preferable to continued uncertainty and that the industry must prioritize progress over perfection.#cryptonews https://t.me/coinsignalpublic https://coinsignals.net
