Trump Takes Sides in Crypto-Bank Showdown, Pushes Congress to Act 

As reported by Decrypt, President Trump went public with his frustration on Tuesday, posting on Truth Social to accuse major banks of trying to sabotage his administration’s crypto agenda. Trump specifically called out banks for “threatening and undermining” the GENIUS Act he signed last summer that created the first national rules for stablecoins.

At the same time, Decrypt reports, Trump urged lawmakers to pass the crypto market-structure CLARITY Act. The bill passed the House last year but has been hung up in the Senate for months, leaving a legal gray area that makes it harder for crypto businesses to operate in the U.S.

“The U.S. needs to get Market Structure done, ASAP,” Trump wrote, warning that delays could push the crypto industry to set up shop in other countries. “The Genius Act was the U.S.A.’s first big step to make the U.S. the crypto capital of the world, and getting the Clarity Act done is the next step to finish the job.”

Although the GENIUS Act is on the books and in force, traditional banks have waged a months-long campaign to close what they see as loopholes in the law that could allow stablecoin issuers to offer interest or yield to coin holders. In an interview with CNBC the day before Trump’s post, JPMorgan Chase CEO Jamie Dimon argued that any crypto company wanting to pay rewards on customer balances should be regulated the same way banks are. “If you want to be a bank, become a bank,” he said, warning that letting crypto firms operate differently could put the broader financial system at risk.

Read more: NY Bill Would Add New Criminal Penalties for Unlicensed Crypto Activity

Banks, which face strict rules on how they can pay depositors, say it’s unfair to let crypto companies do the same thing without similar oversight. Crypto firms counter that these rewards are central to how their business works. Neither side is budging.

That deadlock already dealt a blow to the CLARITY Act earlier this year. Decrypt reports that Coinbase, the largest U.S. crypto exchange, pulled its support from the bill after lawmakers proposed changes that would have limited stablecoin reward programs. The Senate Banking Committee had to postpone its vote on the legislation as a result.

Meanwhile, the government is moving ahead on rules for the GENIUS Act. The Office of the Comptroller of the Currency — the federal agency that oversees national banks — released a proposed rule last week spelling out how banks and other regulated institutions could issue and manage stablecoins. That process is on track even as the broader legislative fight continues.

The clock is ticking. White House officials had hoped bank and crypto lobbyists would reach a compromise by early March, but Decrypt reports the two sides remain far apart.

The longer the CLARITY Act stays stuck, the worse the odds get. Congress will increasingly turn its attention toward midterm elections as the year progresses, leaving less time and political appetite for complex financial legislation. Industry participants warned Decrypt that if a deal is not reached soon, the bill could die entirely for this session of Congress — meaning the legal uncertainty hanging over the crypto industry would continue well into the future.