TLDR
- President Trump publicly attacked banks on Truth Social, accusing them of undermining the GENIUS Act stablecoin law
- The fight centres on whether third-party platforms can offer yield on stablecoins held by customers
- Banks argue stablecoin yield payments could trigger deposit flight from the banking sector
- The Senate Banking Committee postponed a markup hearing in January after Coinbase withdrew support
- House Financial Services Chair French Hill suggested the Senate simply adopt the House-passed CLARITY Act
Trump took to Truth Social Tuesday to accuse banks of holding crypto legislation hostage.
🚨JUST IN: President Trump says: “The GENIUS ACT is being threatened and undermined by the banks, and that is unacceptable, We are not going to allow it.”
“Getting the Clarity Act done is the next step to finish the job.”$RLUSD 🤝 #XRP pic.twitter.com/QIZXKtVzkE
— JackTheRippler ©️ (@RippleXrpie) March 3, 2026
He said banks were threatening the GENIUS Act — the stablecoin law he signed in July — and trying to block the CLARITY Act, the crypto market structure bill currently stalled in the Senate.
“The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda,” Trump wrote.
The GENIUS Act regulates stablecoins but bans issuers from directly paying yield to holders. However, third-party platforms like crypto exchanges can still offer yield to users.
Banks want that loophole closed. They argue that allowing exchanges like Coinbase to offer stablecoin yield could pull deposits away from traditional banks.
Crypto companies and lobbyists have pushed back hard against any ban on yield payments.
Coinbase pulled its support for the Senate bill in January over the issue. That triggered the Senate Banking Committee to postpone a scheduled markup hearing, and no new date has been set.
What’s Holding the Bill Up
The White House has hosted at least three meetings between banking and crypto industry representatives this year to negotiate bill language.
A tentative White House deadline of end-February passed without a deal being reached.
Draft language is reportedly circulating among lawmakers, but no agreement has been announced.
The Senate calendar is tightening. A summer recess is approaching, and the 2026 midterm election cycle is picking up pace.
What French Hill Said
House Financial Services Committee Chair French Hill weighed in at a separate Tuesday event.
He said the CLARITY Act, which passed the House with 78 Democratic votes, already reaffirmed that stablecoins are a payment device, not an investment product, and should not pay interest directly.
Hill recommended the Senate adopt the House bill’s language if it cannot reach its own agreement.
“If the Senate can’t come to a straightforward conclusion here, I recommend they use the language that we have in the House-passed Clarity Act,” Hill said.
Trump also referenced his family-linked company World Liberty Financial, which issues its own stablecoin called USD1.
The Office of the Comptroller of the Currency published a rule proposal last week saying contracts between stablecoin issuers and third-party associates must clearly define what those third parties are offering — but stopped short of banning yield payments outright.
Trump’s post came after several days focused on U.S. military strikes against Iran, which have disrupted air travel and shipping in the Middle East.
