Trump Urges Banks to Support Crypto CLARITY Act

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Trump Frames Crypto as an Innovation Battle

In the post, Trump accused banks of prioritizing profits over technological progress.

“The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage,” Trump wrote. “They need to make a good deal with the Crypto Industry because that’s what’s in best interest of the American People.”

He added that the U.S. must protect the domestic crypto sector as it approaches mainstream adoption.

“This Industry cannot be taken from the People of America when it is so close to becoming truly successful,” Trump said.

He argued that traditional financial institutions are trying to block innovation while enjoying record earnings. According to Trump, Americans should benefit from higher returns through new financial technologies such as stablecoins.

“Americans should earn more money on their money,” he said.

Trump also warned that delays could push the industry abroad. If lawmakers fail to act, he said, crypto development could shift to countries like China or other competing markets.

He described the banks’ lobbying efforts against the legislation as “unacceptable.”

The GENIUS Act Already Became Law

The GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, became law in July 2025.

The legislation created the first federal framework for payment stablecoins in the United States. It requires stablecoins to maintain one-to-one backing with cash or short-term liquid assets.

Under the law, federal banking regulators such as the Federal Reserve and the Office of the Comptroller of the Currency oversee stablecoin issuers. The bill also requires compliance with anti-money laundering and know-your-customer rules.

Lawmakers removed most oversight from the Securities and Exchange Commission and instead placed stablecoin regulation within banking agencies.

The bill passed Congress with strong bipartisan support. The Senate approved it by a 68–30 vote, while the House passed it 308–122.

The CLARITY Act Remains Stuck in the Senate

While the GENIUS Act addresses stablecoins, the CLARITY Act focuses on the broader digital asset market.

The Digital Asset Market Clarity Act would define regulatory jurisdiction between the SEC and the Commodity Futures Trading Commission. It would also create licensing frameworks for crypto exchanges, brokers, and custodians.

The House approved the bill in July 2025 with bipartisan support. However, it has remained stalled in the Senate.

Because the Senate filibuster requires 60 votes to advance legislation, negotiations have dragged on for months despite Republican control of roughly 53 seats.

Supporters argue the bill would unlock institutional investment and provide long-awaited regulatory certainty for digital assets.

Banks and Crypto Firms Clash Over Stablecoin Yields

The main dispute centers on stablecoin interest and reward programs.

Banks argue that allowing crypto platforms to offer yields on stablecoins could pull deposits away from traditional accounts. They warn that large-scale deposit migration could weaken the banking system and reduce financial stability.

Crypto companies and industry advocates disagree. They say yield products are essential for innovation and consumer adoption. In their view, banks are lobbying to restrict these features in order to protect their market dominance.

This conflict has stalled negotiations for months.

Pressure Builds for a Senate Deal

Trump’s latest comments increase political pressure on lawmakers to resolve the dispute.

Administration officials, including Treasury Secretary Scott Bessent and White House crypto advisor David Sacks, have already pushed for faster action. Negotiators are now working behind closed doors to find a compromise that could satisfy both banks and crypto firms.

Possible solutions include limited yield allowances for stablecoins, stronger consumer protections, or regulatory carve-outs for banks.

What Happens Next

If the Senate passes the CLARITY Act, the U.S. would gain its first comprehensive regulatory framework for digital assets. Supporters believe this could unlock significant institutional capital, accelerate tokenization, and strengthen America’s position as a global crypto hub.

Some industry leaders remain optimistic. Ripple CEO Brad Garlinghouse recently suggested the bill has about a 90 percent chance of passing by April 2026 if momentum continues.

However, others warn that the window could close as the 2026 midterm elections approach.

If lawmakers fail to act, regulatory uncertainty may continue. In that case, crypto companies could expand operations overseas while U.S. institutions wait for clearer rules.

For now, Trump’s message is clear. He wants the Senate to move quickly and reach a deal that keeps the crypto industry anchored in the United States.