Trump Attacks Banks Over Stablecoin Yield, Clarity Act Standoff

President Donald Trump accused US banks of threatening the GENIUS Act and holding the CLARITY Act hostage in a dispute over stablecoin yields, calling on Congress to pass market-structure legislation immediately. He said banks are “hitting record profits” and warned that failure to act could drive the crypto agenda overseas, intensifying a months-long standoff that now threatens to derail the CLARITY Act before the 2026 midterms.

The core disagreement centers on a provision in the GENIUS Act that bars stablecoin issuers from paying interest directly to holders, while not explicitly preventing third-party platforms from passing yield on to users — a gap banks label a “loophole.” Crypto exchanges can capture yield on reserve assets such as US Treasury bills and distribute it to customers, undercutting traditional savings accounts; banking groups have warned this could spur deposit outflows of up to $6.6 trillion, a figure drawn from a US Treasury Department analysis.

United States

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