Trump Criticizes Banks for Stalling Crypto Bill, Backs GENIUS Act
U.S. President Donald Trump criticized banks for impeding progress on a Senate crypto market structure bill over stablecoin yield provisions, urging industry and banking groups to reach an agreement. In a Tuesday post on Truth Social, Trump said the GENIUS Act is being undermined and pressed for swift completion of market structure legislation.
The GENIUS Act, enacted by Congress in July, establishes a regulatory framework for stablecoin issuers and prohibits them from directly paying yield to holders. It does not restrict third-party platforms, such as crypto exchanges, from offering yield on stablecoin balances.
Banking associations contend the third-party allowance is a loophole and have sought to add a blanket prohibition on stablecoin yield payments to the Senate’s market structure bill. The House approved its version of the legislation, the CLARITY Act, in July.
Trump said banks should not undercut the GENIUS Act or delay the CLARITY Act and called on them to “make a good deal” with the crypto sector, arguing it is in the public interest. He also pointed to banks’ record profits and warned that delaying clarity could shift crypto activity overseas.
Crypto industry executives and lobbyists have opposed efforts to include a yield ban, with Coinbase withdrawing its support for the legislation in January over the issue. Following Coinbase’s move, the Senate Banking Committee postponed a markup of the bill in January and has not set a new date to consider it.
Banking groups argue that allowing stablecoin yield could draw deposits out of traditional bank accounts and pose risks to financial stability.
Representatives from crypto and banking groups have met at the White House three times this year to negotiate bill language, but no agreement has been reached. Trump is pressing for passage ahead of the November midterm elections, as crypto-focused political groups have raised more than $200 million to support candidates favorable to the industry.
Hill says Senate should weigh House-passed bill
Representative French Hill, a senior Republican and chair of the House Financial Services Committee, said Tuesday that the Senate should consider adopting the House’s version if it cannot advance its own bill. Hill noted the CLARITY Act reaffirmed, on a bicameral and bipartisan basis, that stablecoins function as a blockchain-based payment instrument rather than an investment product and that they would not pay interest.
He added that if the Senate cannot reach a resolution, it should use the language in the House-passed CLARITY Act — which received 78 Democratic votes — as the path forward.
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