President Donald Trump publicly accused major banks Tuesday of undermining the administration's crypto agenda, intensifying a dispute that has stalled key market-structure legislation in Congress.
Trump warned that the banking sector was "threatening and undermining" the stablecoin-focused GENIUS Act and urged lawmakers to pass the CLARITY Act, a separate measure for broader crypto industry oversight. He emphasized the need for the U.S. to become the crypto capital of the world.
Tensions are high between traditional financial institutions and crypto companies over stablecoin yield programs, a major hurdle for the CLARITY Act. JPMorgan CEO Jamie Dimon stated that companies offering stablecoin rewards should operate as banks, warning that unequal regulation could destabilize the financial system.
The standoff has delayed progress on the CLARITY Act, which aims to define regulatory jurisdiction for digital assets between the SEC and CFTC.
While the GENIUS Act, a federal framework for payment stablecoins signed into law last summer, is being implemented, the broader market-structure bill remains stalled. The Office of the Comptroller of the Currency has proposed rules for banks issuing payment stablecoins under federal supervision.