President Trump on Tuesday criticized major banks for what he described as efforts to stall crypto legislation, calling for swift passage of market structure reforms and the Clarity Act.

GENIUS Act Under Pressure

Trump claimed in a post on Truth Social that banks are attempting to undermine the GENIUS Act and delay broader crypto regulation, which he views as critical to keeping innovation within the United States rather than pushing it overseas to countries like China.

Framing the legislation as part of a broader strategy, Trump described the GENIUS Act as the first milestone toward making the U.S. the "crypto capital of the world," with the Clarity Act representing the next essential phase for securing the industry domestically.

He also criticized banks for posting record profits while opposing pro-crypto reforms, urging them to work collaboratively in the interest of Americans.

He expressed support for the legislation, stating it aligns with the best interests of the American public.

The Stablecoins vs. Bank Deposits Debate

The Clarity Act passed the House in 2025 but remains stalled in the Senate amid competing committee drafts that have yet to be reconciled. Opposition from Coinbase Global added further complexity to the legislative path forward.

Banks have pushed back particularly against provisions that would allow crypto firms to offer yield on stablecoins, arguing it could trigger deposit flight from traditional institutions.

Jamie Dimon, CEO of JPMorgan Chase, stated that stablecoins paying interest should be regulated like banks, arguing that offering yield on customer balances makes them functionally like deposit-taking institutions.

However, Patrick Witt countered that regulation should hinge on whether issuers lend or rehypothecate reserves, not merely on paying yield.

He noted that the GENIUS Act prohibits such practices, maintaining that fully reserved stablecoins are fundamentally different from traditional bank deposits.

As debate intensifies, the outcome of the Clarity Act could significantly shape the future of U.S. crypto regulation.

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