U.S. President Donald Trump criticized banks in a Truth Social post for undermining the GENIUS Act and holding the Clarity Act hostage over stablecoin yield issues. He called for swift congressional action to advance crypto market structure legislation. The dispute has stalled negotiations between banking and crypto sectors.
On March 3, 2026, U.S. President Donald Trump posted on Truth Social, accusing the banking industry of threatening the GENIUS Act, a stablecoin law he signed in July 2025. "The Genius Act is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it," Trump wrote. He urged Congress to pass the Clarity Act immediately, stating, "The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money."
The core conflict revolves around whether third-party platforms like Coinbase can offer yield on stablecoin deposits. The GENIUS Act prohibits stablecoin issuers from paying interest directly to holders but does not explicitly bar third parties from distributing yield earned on reserve assets such as U.S. Treasury bills. Banks, including JPMorgan Chase and Bank of America, argue this creates a loophole that could lead to massive deposit outflows. JPMorgan CEO Jamie Dimon stated that stablecoin issuers paying interest on balances should be regulated like banks, meeting capital, liquidity, and deposit insurance requirements. Bank of America CEO Brian Moynihan warned of potential diversion of 30-35% of commercial bank deposits, citing a U.S. Treasury analysis estimating up to $6.6 trillion in flight.
Crypto leaders, including Coinbase CEO Brian Armstrong, counter that users should earn yield on holdings, a practice enabled under the GENIUS Act. A coalition of over 125 crypto firms opposes reopening the law's provisions. The White House has mediated talks, but a tentative March 1 deadline passed without resolution. The Senate Banking Committee postponed a markup hearing in January, leaving the Clarity Act in limbo amid the 2026 midterm elections and summer recess.
Senator Cynthia Lummis reposted Trump's message, adding, "America can’t afford to wait. Congress must move quickly to pass the Clarity Act." The Office of the Comptroller of the Currency issued a proposed rule last week clarifying contracts between stablecoin issuers and partners but stopped short of banning yield payouts.
