Former President Donald Trump has openly supported crypto companies in their fight with big banks over stablecoin yield. His support could influence lawmakers and affect how digital money is regulated in the US.
Trump said banks are stopping progress on the Clarity Act, a law that would let crypto firms offer interest-like returns on stablecoins safely. He added that Americans should be able to earn more on their money.
Banks like JPMorgan Chase and Bank of America warn that high-yield stablecoins could take trillions of dollars away from banks. This could make it harder for banks to give loans, especially for small businesses.
Crypto companies, including Coinbase, say stablecoin yield helps people earn money on funds sitting idle. They argue the money is safe because it is backed by US Treasury reserves. Stablecoins often give higher returns than normal bank accounts.
The markets reacted quickly. Coinbase shares jumped 15% after Trump spoke in support of crypto. Big banks’ stocks fell a little as investors watched how rules might change.
Trump’s family also has interests in crypto, including the USD1 stablecoin from World Liberty Financial. Eric Trump criticized banks for blocking crypto growth, calling it unfair to Americans.
White House advisors added that offering stablecoin yield does not need the same rules as banks. Regulation should focus on how reserves are handled, not the interest itself. This matches the GENIUS Act rules for stablecoins.
Even with Trump’s backing, passing the Clarity Act could still be hard. Banks and crypto companies have different opinions, so talks may continue before a deal is made.
The result of this fight could shape crypto’s future in the US If crypto wins, more people can earn from stablecoins. If banks win, crypto may face stricter rules.
Trump’s support shows how important crypto has become in US finance. The fight over stablecoin yield is now about money, rules, and markets.
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