President Trump slams banks for blocking crypto bill progress

President Donald Trump has strongly criticized banks for allegedly obstructing progress on the country’s cryptocurrency market structure legislation.

In a Truth Social post in March, Trump accused banking groups of attempting to undermine the GENIUS Act, a stablecoin regulation law passed by Congress in July.

According to Trump, the banking sector’s push to modify the bill threatens a key pillar of his broader crypto policy agenda.

Trump argued that the U.S. should move quickly to finalize market structure policies for the digital asset industry.

He warned that delays could push cryptocurrency businesses to relocate operations to China or other jurisdictions that provide clearer regulatory frameworks. Trump also emphasized that banks, despite reporting record profits, should not interfere with policies designed to support the crypto sector and maintain U.S. leadership in financial innovation.

The crypto dispute 

At the center of the dispute is the issue of stablecoin yield payments. The GENIUS Act allows stablecoin issuers to operate under a regulated framework but prevents them from directly paying interest or yield to token holders. 

However, third-party platforms such as cryptocurrency exchanges can still provide yield opportunities to customers holding stablecoins.

Banking groups argue that this arrangement creates a loophole that could draw significant deposits away from traditional bank accounts into digital assets.

They have therefore been lobbying lawmakers to expand the ban on yield payments to cover all types of stablecoin-related returns.

Crypto industry representatives, however, oppose such restrictions, arguing that yield opportunities are critical to the competitiveness and growth of the digital asset ecosystem.

Impact of crypto dispute with banks 

Notably, the dispute has already delayed legislative progress. The Senate Banking Committee postponed consideration of the market structure bill after major crypto lobbyists, including Coinbase, withdrew support earlier this year over disagreements about yield restrictions.

Negotiations between banking and crypto representatives have continued, including White House meetings, but no final compromise has been reached.

Meanwhile, Representative French Hill has urged the Senate to consider the House-passed CLARITY Act if it cannot agree on its own version. 

He emphasized that the House bill drew bipartisan support and reinforced that stablecoins should primarily serve as blockchain-based payment tools, not investment products.

With midterm elections approaching, pressure is mounting on lawmakers to deliver a framework that balances financial stability with crypto innovation.

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