Trump Accuses Major Banks of Blocking Stablecoin Rules as GENIUS Act Dispute Slows Crypto Legislation

• Trump says banks are trying to weaken the GENIUS Act while Congress debates stablecoin rules and broader crypto market structure laws.

• Banks want new rules on stablecoin rewards as lawmakers debate the CLARITY Act and digital asset oversight in the United States.

• Senate talks on crypto laws remain stalled as banks and the crypto industry continue to clash over stablecoin regulation.

U.S. President Donald Trump has accused major banks of trying to weaken stablecoin legislation in the United States. The dispute centers on the GENIUS Act, which created federal rules for stablecoin issuers last year. Trump argued that banks are lobbying lawmakers to delay progress on digital asset legislation. As a result, the debate has intensified inside Congress. Lawmakers now face pressure to move forward with broader crypto market rules.

🚨 BREAKING: TRUMP SLAMS BANKS OVER STABLECOIN DISPUTE; SAYS “BANKS ARE TRYING TO UNDERCUT THE GENIUS ACT”

President Trump blasted major banks for allegedly undermining the GENIUS Act and stalling crypto market structure reform, urging Congress to pass the Bill immediately. pic.twitter.com/NCpBPWqdXb

— Coin Bureau (@coinbureau) March 4, 2026

The disagreement also affects discussions around the Digital Asset Market Clarity Act. This bill aims to define how regulators oversee digital assets in the United States. The House of Representatives passed its version of the legislation last year. However, the Senate has not advanced the proposal yet. Consequently, disagreements between banks and crypto companies continue to slow the legislative process.

Stablecoin Rewards Debate Drives Industry Tension

The conflict largely revolves around stablecoin reward programs and interest rules. The GENIUS Act prevents stablecoin issuers from paying direct interest to coin holders. However, banks argue that the law still allows outside companies to offer rewards to users. Banking groups say this situation creates unfair competition with traditional deposit products. Therefore, they want Congress to close the gap through a new market structure bill.

Meanwhile, many crypto industry leaders strongly oppose the banks’ position. They argue that rewards help stablecoins compete with traditional payment systems. Industry executives believe incentives encourage adoption and increase stablecoin usage. In addition, they warn that removing rewards could slow the growth of digital dollar products. This difference in views continues to widen the gap between banks and crypto companies.

Banking Leaders and Crypto Firms Push Different Rules

The debate has also drawn attention from leaders across the financial sector. Jamie Dimon, chief executive of JPMorgan Chase, addressed the issue during industry discussions. He argued that stablecoin products offering returns should follow the same rules applied to banks. Banking executives believe equal standards will protect financial stability. However, crypto companies argue that strict banking rules could limit innovation in digital finance.

The White House has attempted to ease tensions between the two industries. Officials recently hosted meetings between banking leaders and crypto executives. The administration hoped the discussions would help both sides reach an agreement. However, the talks have ended without a breakthrough so far. As a result, lawmakers have struggled to move forward with the broader crypto bill.

Congress Faces Pressure to Move Crypto Legislation Forward

Some lawmakers now call for quicker action on digital asset legislation. Representative French Hill suggested that the Senate could use the House version of the CLARITY Act. Senator Cynthia Lummis has also urged Congress to accelerate the process.

Both lawmakers believe the United States needs clear rules for digital assets. Meanwhile, delays have continued as lawmakers attempt to balance banking concerns and crypto industry demands.