Eric Trump, co-founder of World Liberty Financial and son of Donald Trump, has sharply criticized major U.S. banks amid ongoing negotiations over stablecoin regulation in Congress.
In a public statement, Trump accused large financial institutions including JPMorgan Chase, Bank of America and Wells Fargo of lobbying against provisions that would allow stablecoin issuers to offer yield or customer rewards. He argued that banks benefit from interest paid by the Federal Reserve while offering comparatively low returns to depositors.
The debate centers on proposed market structure legislation, including the Clarity Act, which addresses how stablecoins should be regulated and whether issuers can provide yield-bearing products.
World Liberty’s USD1 Stablecoin at Center of Policy Debate
World Liberty Financial issues its own dollar-pegged stablecoin, USD1, and is reportedly pursuing a charter through the Office of the Comptroller of the Currency. Trump suggested that efforts to restrict stablecoin yields are aimed at preventing deposit outflows from traditional banks to crypto platforms offering returns of 4% to 5% or more.
The dispute has drawn broader political attention. President Donald Trump recently urged Congress to move forward with stablecoin legislation following discussions with industry leaders, including Coinbase CEO Brian Armstrong. Meanwhile, some banking executives have called for stablecoin issuers to face regulatory standards similar to those imposed on traditional banks.
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