Trump is going after the banks over the latest crypto bill fight. On Tuesday, he jumped on social media and blamed Wall Street for blocking a major piece of cryptocurrency legislation. He said banks “need to make a good deal with the Crypto Industry” so the Senate can finally move forward on the digital asset bill.
This comes as the White House tries to settle a nasty standoff between big banks and crypto firms. At the center of it: whether crypto exchanges should be allowed to offer rewards programs that pay people yield for holding stablecoins—those dollar-pegged digital tokens everyone’s fighting over. Because of this fight, the Senate bill to set up new crypto rules is stuck in limbo.
Trump didn’t hold back. “The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China and other Countries if we don’t get The Clarity Act taken care of,” he wrote, calling out the bill that would give crypto companies a better regulatory framework.
Crypto companies see Trump’s post as a big win. They’re in the middle of a battle with the banks, who want to ban these yield payments on stablecoins. Trump took the crypto side, echoing their talking point: “Americans should earn more money on their money.” Banks, meanwhile, warn that letting people earn yield on stablecoins could cause a flood of deposits to leave traditional banks, which would mess with lending.
Still, even with Trump’s support, the bill is stuck. Unless banks get what they want on the stablecoin issue, the Senate probably won’t have enough votes to move forward.
White House crypto adviser Patrick Witt has been trying to broker a deal, but talks have dragged on well past the unofficial March 1 deadline the administration set. The White House has pulled both sides into a series of meetings, but no one’s budging.
Trump didn’t mince words: “The U.S. needs to get Market Structure done, ASAP,” he wrote.
He also called out the banks for trying to undermine the GENIUS Act—a law that set new stablecoin rules. “That is unacceptable—we are not going to allow it.”
For Trump, it all comes down to this: “The crypto industry cannot be taken from the People of America when it is so close to becoming truly successful,” he said."
