U.S. President Donald Trump mentioned bankers are attempting to undermine the GENIUS Act — the signature stablecoin laws he signed into regulation final 12 months — in a Truth Social post Tuesday, and he urged passage of Congress’ crypto market construction laws with out interference.
“The U.S. must get Market Construction finished, ASAP. Individuals ought to earn extra money on their cash,” he mentioned within the put up. “The Banks are hitting report earnings, and we aren’t going to permit them to undermine our highly effective Crypto Agenda that may find yourself going to China, and different International locations if we don’t get The Clarity Act taken care of.”
He warned banks in opposition to holding the Clarity Act “hostage” in his put up, saying the invoice was essential to hold the crypto business within the U.S.
“They should make an excellent take care of the Crypto Business as a result of that’s what’s in finest curiosity of the American Folks,” he mentioned.
The market construction invoice has been in limbo because the Senate Banking Committee indefinitely postponed a markup listening to, wherein lawmakers had been set to debate and vote on amendments to the invoice, in January. There are a variety of points nonetheless holding up passage of the invoice, however essentially the most public battle has been between the banking and crypto sectors over whether or not third events can supply yield on stablecoin deposits to clients.
Banks are involved that permitting Coinbase and different exchanges to supply stablecoin yield to clients may result in deposit flight from the banking sector. Crypto firms contend that individuals must be allowed to earn yield on their holdings, a follow they are saying was allowed within the GENIUS Act.
The White Home has facilitated conferences between banking and crypto business representatives to barter the language of the invoice. People conversant in the negotiations say draft language is circulating amongst lawmakers.
Whereas the White Home had set a tentative deadline for the top of February to get a deal collectively, one has not but emerged. The Senate nonetheless has time to work on the invoice, however the calendar is starting to shrink. Lawmakers have a recess through the summer season, and the 2026 election cycle is starting to kick into full gear, which can take away from time they may dedicate to the invoice in any other case.
The Workplace of the Comptroller of the Forex, a federal banking regulator, mentioned in a rule proposal final week that the phrases of the contracts between stablecoin issuers and their third-party associates must be clear about what precisely these third events are providing, however the company didn’t explicitly ban yield payouts.
World Liberty Monetary, an organization related to Trump and his household, presents its personal stablecoin, USD1, and it lately sought to safe a belief constitution below the OCC for an affiliated agency.
The put up in regards to the Clarity Act was an abrupt dip into monetary coverage after Trump spent the previous few days overseeing U.S. army strikes in opposition to Iran, in what the U.S. authorities has described as a “particular fight operation.” The rising hostilities have disrupted air journey all through the Center East, in addition to transport by the Strait of Hormuz.
Learn extra: Bitcoin is stuck in a rut but JPMorgan says new legislation could be the ultimate spark
UPDATE (March 3, 2026, 20:25 UTC): Provides further element.
