Trump Rebukes Banks for Blocking Senate Crypto Market-Structure Bill over Stablecoin Yield Fight

Former President Donald Trump publicly accused banking groups of stalling the Senate’s market-structure crypto bill—including the CLARITY Act—by pushing to ban stablecoin yield. Trump said banks are undermining the GENIUS Act and urged them to “make a good deal” with crypto firms to keep crypto business in the U.S., warning that failure to pass comprehensive legislation could cede leadership to other countries. The GENIUS Act, enacted last year, provides a regulatory path for stablecoin issuers but bars issuers from directly offering yield; third-party platforms can still offer yield. Banks want the Senate bill to extend that ban to all stablecoin yield payments, arguing yields could pull deposits from banks and threaten financial stability. Crypto firms and lobbyists—including Coinbase—opposed a version with a blanket yield ban; Coinbase withdrew support in January, and the Senate Banking Committee postponed its markup. The Senate Agriculture Committee advanced its portion in January, but the Banking Committee has delayed action; a new markup was reportedly targeted for mid–to–late March. Congressional leaders, including House Financial Services chair Rep. French Hill, have urged the Senate to adopt the House-passed CLARITY Act text if negotiations fail. The dispute has prompted White House meetings between banks and crypto groups but no resolution. Traders should watch stablecoin regulation, potential yield restrictions, and legislative timing—any permanent ban or tighter rules could reduce demand for yield-bearing stablecoin products, affect on-chain lending platforms and stablecoin issuers, and shift custody or business offshore, influencing liquidity and funding costs across crypto markets.