Trump presses Congress on CLARITY bill after meeting with Coinbase CEO
- Donald Trump urged Congress to pass the CLARITY Act, criticizing banks for trying to hold the bill "hostage."
- The legislative deadlock centers on whether stablecoin issuers can offer yield to customers.
- Jamie Dimon said issuers paying rewards should face the same rules as banks, highlighting regulatory tensions shaping US crypto policy.
US President Donald Trump is urging legislators to pass the CLARITY Act after allegedly meeting with Coinbase CEO Brian Armstrong amid growing dispute over stablecoin yields.
Stablecoin yield dispute escalates as Trump presses Senate on crypto legislation
US President Donald Trump has urged Congress to pass the crypto market structure legislation, putting pressure on lawmakers.
In a Truth Social post on Tuesday, Trump called for swift approval of the CLARITY Act and accused major banks of attempting to weaken existing crypto reforms.
"The US needs to get Market Structure done, ASAP. Americans should earn more money on their money," Trump wrote, adding that banks should not "hold The Clarity Act hostage."
The President's comments allegedly followed a private White House meeting with Coinbase CEO Brian Armstrong earlier on Tuesday, Politico reported, citing two people familiar with the matter. Details of the discussion were not disclosed.
The legislative standoff centers on whether third parties should be permitted to offer yield or rewards on customer holdings.
The CLARITY Act seeks to define regulatory oversight for digital assets by delineating authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
It builds on the GENIUS Act, signed into law in July, which established a federal framework for stablecoins but prohibited issuers from paying interest to avoid replicating traditional banking activities without equivalent regulation. However, the bill didn't prevent third parties, like exchanges, from offering yield. Banks are aiming to close that "loophole" through the CLARITY bill.
Crypto firms, including Coinbase, argue that restricting yield payments limits innovation and reduces competitiveness. Banking groups counter that allowing stablecoin issuers to offer interest-like products without full banking oversight would create regulatory arbitrage and introduce systemic risks.
The debate intensified after JPMorgan CEO Jamie Dimon addressed the issue in a CNBC interview. Dimon noted that stablecoin issuers offering rewards or yield should be regulated under the same standards as traditional banks.
"Rewards are the same as interest," he said, adding that firms holding customer balances and paying returns should be subject to capital requirements, liquidity rules, anti-money laundering standards, and other banking regulations.
He warned that yield-bearing stablecoins could divert deposits from traditional institutions and disrupt lending markets if not subject to equivalent oversight.
With Senate negotiations ongoing, lawmakers now face mounting pressure to resolve the stablecoin yield dispute and deliver the market structure legislation, which has been on hold since July.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
