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- Trump accuses U.S. banks of undermining crypto market structure reform.
- The CLARITY Act remains stalled over disputes about stablecoin yield.
- Coinbase and banking leaders are lobbying as the Senate deadline nears.
President Donald Trump publicly accused major U.S. banks of working against his digital asset agenda, warning that the landmark stablecoin framework he signed last year is being quietly undermined. His remarks, posted on Truth Social, escalated tensions just as lawmakers weigh the fate of the closely watched CLARITY Act.
The clash underscores a broader power struggle between traditional finance and the fast-growing crypto industry — with billions in deposits and regulatory control at stake.
Trump Targets Banks Over Stablecoin Rules
At the center of the dispute is the GENIUS Act, the first federal law to create a regulatory framework for payment stablecoins. Trump argues that banks are now attempting to weaken follow-up legislation — the CLARITY Act — which would define market structure rules and clarify oversight responsibilities between the SEC and CFTC.
In his statement, Trump urged Congress to move “ASAP,” warning that regulatory delays could push innovation overseas. He framed the battle as one of economic competitiveness, suggesting that failure to act could benefit rivals like China.
Supporters quickly rallied. Senator Cynthia Lummis called for swift passage, while crypto leaders such as Charles Hoskinson and Brad Garlinghouse echoed concerns that banks are attempting to preserve their dominance.
America can’t afford to wait. Congress must move quickly to pass the Clarity Act.
— Senator Cynthia Lummis (@SenLummis) March 3, 2026
Let’s make the U.S. the digital asset capital of the world. https://t.co/bL9WOeOkZr
Why the CLARITY Act Is Stalled
Although the House advanced the bill, it remains stuck in the Senate Banking Committee. A key sticking point involves stablecoin yield. The GENIUS Act bars issuers from paying direct interest to holders but leaves ambiguity around whether platforms can share rewards.
Banks argue that allowing yield through exchanges effectively turns them into unregulated banks. Jamie Dimon, CEO of JPMorgan Chase, recently suggested that stablecoin platforms offering yield should face similar oversight as traditional banks.
Crypto firms reject that view, calling it anti-competitive. Meanwhile, banking trade groups warn that high-yield stablecoins could pull trillions from traditional deposits.
Coinbase Heads to Washington
Adding to the drama, a delegation from Coinbase, including CEO Brian Armstrong, visited the White House the same day Trump made his comments. While details of the meeting remain unclear, it highlights ongoing back-channel negotiations.
Also Read: Bitcoin Crashes Below $68K as Trump Signals Longer Iran War — Is More Pain Ahead?
With the Senate calendar tightening ahead of midterm season, lawmakers face mounting pressure. Prediction markets now show rising odds that the CLARITY Act becomes law in 2026.
The outcome of the CLARITY Act will shape the next era of U.S. digital finance. What began as regulatory fine-tuning has evolved into a high-stakes showdown between banks and crypto leaders — with the White House squarely in the middle. Whether compromise emerges or positions harden further may become clear in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
