Overview
- President Donald Trump used a Truth Social post to accuse major banks of undermining the GENIUS Act and to urge Congress to pass the CLARITY Act quickly, warning the industry could shift overseas without action.
- The core dispute centers on whether exchanges and other third parties can offer interest‑like rewards on stablecoin balances, a practice banks say could trigger deposit flight while crypto firms argue it is essential for competition.
- The Office of the Comptroller of the Currency issued a proposal to implement the GENIUS Act that signals heightened scrutiny of third‑party yield arrangements and calls for clearer contracts, stopping short of an outright ban.
- JPMorgan CEO Jamie Dimon said rewards that function like interest should face full bank‑level regulation, drawing a line between transaction incentives and yield on stored balances.
- Senate action remains stalled after a January markup was postponed when Coinbase withdrew support over reward provisions, White House‑brokered talks missed an informal end‑February deadline, and although draft language is circulating, the shrinking Senate calendar raises the risk of delay; some reports point to a possible mid‑to‑late March markup without a finalized deal.