Trump urges Congress to accelerate passing the CLARITY Act, condemns the banking industry for "sabotage" to obstruct legislation
President Donald Trump of the United States posted on Truth Social on Tuesday, criticizing traditional banks for attempting to “threaten and undermine” the first U.S. regulation for stablecoin issuers—the GENIUS Act—and calling on Congress to quickly pass a more comprehensive cryptocurrency market framework bill, the CLARITY Act.
Trump’s strong stance comes amid escalating tensions between Wall Street banks and the cryptocurrency industry, with debates over the regulation of “stablecoin yields” (the interest or rewards users earn from holding stablecoins). In his post, Trump warned banks not to use the CLARITY Act as a “hostage” and emphasized that this legislation is a necessary tool to keep the cryptocurrency industry rooted in the U.S.
The U.S. must quickly complete market structure legislation! Americans deserve to let their money grow.
While banks are reporting record profits, we will not allow them to block our ambitious crypto agenda. If the CLARITY Act isn’t passed swiftly, these industry advantages will ultimately be handed over to China or other countries.
The Digital Asset Market Clarity Act (CLARITY Act), currently under review in Congress, aims to clarify the division of regulatory authority between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the cryptocurrency industry. The bill was bipartisanly approved by the House last year but faced obstacles when transferred to the Senate— the Senate Banking Committee indefinitely delayed the bill’s review in January, causing legislative progress to stall.
Disputes over the CLARITY Act remain unresolved, with the biggest disagreement centered on the fierce battle between banks and the crypto industry over “whether third-party institutions can offer interest on stablecoin deposits”.
The origin of this dispute traces back to the GENIUS Act, which successfully passed last year. To gain banking support, it explicitly banned “interest-bearing stablecoins,” prohibiting issuers from paying interest to users, but did not ban third-party platforms like DeFi protocols and exchanges from offering yield rewards. This angered banks, who are now trying to overturn this in the CLARITY Act legislation by demanding all potential profit pathways be blocked.
Sources say bank representatives have submitted revised proposals on how to handle stablecoin yields, but before Trump’s Tuesday post, the White House and the crypto industry had remained silent.
In response, Trump sharply criticized: “Banks shouldn’t be undermining the GENIUS Act behind the scenes, nor should they use the CLARITY Act as a bargaining chip. They must negotiate in good faith with the crypto industry— that’s the best way to serve the American people.”
Earlier, Trump issued an ultimatum, demanding all parties reach an agreement by the end of February. Over the past month, the White House has repeatedly acted as a mediator, holding multiple closed-door meetings between banks and the crypto industry, but negotiations remain deadlocked. Although the Senate still has time to advance the bill, the approaching summer recess and the upcoming 2026 midterm elections are shrinking the legislative window.
On Monday, JPMorgan Chase CEO Jamie Dimon publicly stated that stablecoin yield products should be regulated as strictly as banks and called for the establishment of “fair competition rules.”
Representative French Hill proposed a solution, suggesting the Senate adopt the House version of the bill directly to save time and avoid lengthy debates, so the bill can pass quickly.
The CLARITY Act is expected to pass by mid-year! JPMorgan: “8 Major Bullish Factors” Ignite the Crypto Market in the Second Half of the Year
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