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Trump Pressures Banks as Stablecoin-Reward Dispute Freezes CLARITY Act

The president’s public push spotlights a yield fight that has stalled Senate action and raised the odds regulators define crypto rules first.

Overview

  • Trump urged Congress to pass the CLARITY Act “ASAP” and accused banks of undermining the GENIUS stablecoin law and holding market-structure legislation hostage.
  • Talks in the Senate remain stalled after January’s canceled Banking Committee markup following Coinbase’s withdrawal over proposed limits on exchange-offered rewards.
  • The OCC’s late‑February proposal to implement GENIUS signaled third‑party yield arrangements may conflict with the law’s intent, though it stopped short of an explicit ban.
  • JPMorgan CEO Jamie Dimon said platforms paying stablecoin rewards that function like interest should be regulated as banks with equivalent capital, liquidity and insurance requirements.
  • The White House brokered multiple bank–crypto meetings and missed an end‑February target for a compromise, shrinking the spring window for a deal as the SEC and CFTC advance their own rulemaking.