U.S. President Donald Trump is urging lawmakers to move quickly on the Clarity Act, framing it as a crucial next step in advancing his broader crypto agenda.
In a post on Truth Social, Trump claimed that major banks are attempting to undermine the GENIUS Act, the stablecoin legislation he signed into law last year, and warned against interference in Congress’ ongoing efforts to pass comprehensive crypto market structure rules.
Trump said the U.S. must finalize market structure reforms “ASAP,” arguing that Americans deserve better returns while banks post record profits.
He suggested that failing to pass the Clarity Act could weaken U.S. leadership in digital assets, potentially allowing countries like China to gain ground in shaping the future of crypto finance.
“The banks should not try to undermine the Genius Act or keep the Clarity Act hostage. They need to make a good deal with the cryptocurrency industry because that’s what’s best for the American people,” Trump added.
CLARITY ACT delay: what is happening?
The Clarity Act, designed to create a broader framework for regulating crypto markets, is currently on hold following the postponement of a key markup hearing by the Senate Banking Committee in January.
The meeting was set to enable lawmakers to discuss and move the bill forward, but it was indefinitely postponed, leaving the bill in limbo.
One of the major issues is the disagreement over yield for stablecoins between banks and crypto platforms.
Banks are concerned that if platforms like Coinbase are able to pay interest on stablecoin deposits, users could withdraw funds from traditional bank accounts, leading to deposit outflows.
Crypto platforms claim that users should be able to earn interest on digital dollar deposits, citing the fact that it was possible under the GENIUS Act.
The White House is said to have brought all parties to the negotiating table, however the bone-of contention is still the same.
The Office of the Comptroller of the Currency, a federal banking regulator, said last week in its proposal for a rule that the terms of agreements between stablecoin issuers and third-party associates should spell out what these third parties are offering, but it did not explicitly ban yield payouts.
Donald Trump meets Coinbase CEO
President Donald Trump quietly sat down with Brian Armstrong, the head of Coinbase, on Tuesday, and the meeting appears to have quickly shaped the public debate.
No one knows exactly what was said behind closed doors. But soon after the conversation, Trump took to social media to defend the crypto industry and pressure banks to “make a good deal” if digital asset legislation moves forward.
He also accused banks of threatening and undermining a recently passed crypto law, language that closely echoes Coinbase’s position in its ongoing fight with the traditional banking sector.
The episode highlights how high the stakes have become. What might once have been a niche regulatory debate is now drawing direct attention from the White House, as crypto firms and banks battle over the future rules of digital finance.