President Donald Trump has directly intervened in the legislative battle over stablecoin yields, accusing traditional banks of undermining key crypto legislation. In a social media post, he argued that banks are holding the CLARITY Act “hostage” to protect their profits from deposit flight. Crypto industry leaders, including Ripple CEO Brad Garlinghouse, praised the remarks, while internal debate continues over the bills’ potential impact on innovation.
President Donald Trump has accused the traditional banking lobby of undermining the GENIUS Act and holding the CLARITY Act “hostage” to protect their profits. This intervention marks a significant escalation in the legislative fight over whether crypto platforms can offer interest-like rewards on stablecoins.
The GENIUS Act, signed in July 2025, created a federal stablecoin framework but barred issuers from paying interest directly. Banks have lobbied to close this perceived loophole in the broader CLARITY Act, fearing a mass exodus from traditional deposit accounts. Trump framed the dispute as a threat to American innovation in a post on Truth Social.
“The Genius Act is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it,” he wrote. He added that “The Banks should not be trying to undercut The Genius Act or hold The Clarity Act hostage.” The White House had set a March 1 deadline for stakeholders to resolve their differences, with no public compromise announced.
Ripple CEO Brad Garlinghouse backed the president’s remarks, calling them “an extremely pointed message… about what’s in the best interest of the American people.” Senator Cynthia Lummis also urged Congress to pass the act quickly. However, Cardano founder Charles Hoskinson has criticized the legislation as a “horrific, trash bill” that could stifle future U.S. crypto innovation.
