U.S. President Donald Trump has publicly criticized major banking groups for what he describes as efforts to delay progress on federal crypto legislation, particularly the proposed market structure framework tied to stablecoin regulation. In recent remarks, Trump argued that banks are attempting to weaken the GENIUS Act, legislation passed in July that establishes a regulatory pathway for stablecoin issuers while prohibiting them from directly offering yield to token holders.
The dispute centers on whether third-party platforms, such as crypto exchanges, should be allowed to provide yield products linked to stablecoins. Banking representatives contend that allowing indirect yield creates a regulatory loophole that could shift deposits away from traditional financial institutions, potentially impacting liquidity and financial stability.
CLARITY Act Faces Senate Uncertainty
The House-approved CLARITY Act aims to define digital assets and clarify oversight responsibilities across federal agencies. However, progress in the Senate has slowed following disagreements over stablecoin yield provisions and industry opposition to broader restrictions.
Representative French Hill has suggested that if the Senate cannot advance its version, lawmakers should consider adopting the House language to maintain bipartisan momentum.
With midterm elections approaching, digital asset policy has emerged as a strategic issue, as pro-crypto political action committees have reportedly raised more than $200 million to support industry-aligned candidates.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.