The post Trump Attacks Banks Over Stablecoin Yield, Clarity Act Standoff appeared on BitcoinEthereumNews.com.

President Donald Trump accused US banks of threatening the GENIUS Act and holding the CLARITY Act hostage, escalating a months-long standoff between the banking and crypto industries over stablecoin yield. The clash threatens to derail the CLARITY Act before the 2026 midterms, leaving the US crypto regulatory framework incomplete at a critical moment. Trump Takes Aim at Banks Over Stablecoin Yield Fight In a Truth Social post on Tuesday, Trump said the GENIUS Act — the landmark stablecoin law he signed last July — “is being threatened and undermined by the Banks,” and called on Congress to pass market structure legislation immediately. “Americans should earn more money on their money. The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don’t get The Clarity Act taken care of,” Trump wrote. The statement marks the sharpest presidential intervention yet in the legislative battle over stablecoin rewards — a dispute that has stalled the broader crypto regulatory agenda in Washington. Stablecoin Yield: The Core Dispute At the center of the conflict is a provision in the GENIUS Act that prohibits stablecoin issuers from paying interest directly to holders. However, the law does not explicitly prevent third-party platforms such as Coinbase and Kraken from passing yield on to users — a gap that banks have labeled a “loophole.” This arrangement allows crypto exchanges to capture yield on reserve assets such as US Treasury bills and distribute it to customers, creating a competitive edge over traditional savings accounts that often pay as little as 0.01%. Banking trade groups, led by the Bank Policy Institute, have warned that this structure could trigger deposit outflows of up to $6.6 trillion — a figure drawn…

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Filed under: News - @ March 4, 2026 12:20 am