Trump Calls on Congress to Advance Cryptocurrency Regulations as Banking Dispute Intensifies

Trump Accuses Major Banks of Blocking Crypto Legislation

On Tuesday, former President Donald Trump openly charged leading banks with attempting to obstruct his administration’s efforts to advance cryptocurrency policy. This public criticism marks a new escalation in the ongoing conflict between Wall Street institutions and digital asset companies, a dispute that has stalled a significant market-structure bill in Congress.

Posting on Truth Social, Trump claimed that the banking industry was actively working against the GENIUS Act—a law centered on stablecoins—and called on legislators to swiftly approve the CLARITY Act, which aims to clarify regulatory authority over the broader crypto sector.

“The United States must finalize Market Structure legislation as soon as possible,” Trump stated, warning that continued delays could drive crypto innovation abroad. “The Genius Act was America’s initial major move to establish itself as the global leader in crypto, and passing the Clarity Act is the next critical step.”

This dispute has intensified as traditional banks and crypto firms clash over whether stablecoin platforms should be permitted to offer interest or rewards to users—a sticking point that has become the main barrier to advancing the CLARITY Act in Congress.

JPMorgan’s CEO Weighs In

Jamie Dimon, CEO of JPMorgan Chase, entered the debate on Tuesday, arguing that crypto companies wishing to pay yields on stablecoin holdings should be subject to the same regulations as banks. In an interview with CNBC, Dimon remarked, “If you want to operate like a bank, you should become a bank,” cautioning that allowing crypto firms to offer such rewards without equivalent oversight could threaten financial stability.

This deadlock has contributed to the stalling of the CLARITY Act, which is intended to create a comprehensive regulatory framework for digital asset markets.

Senator Lummis Calls on Banks to Support Stablecoins Amid CLARITY Act Impasse

The proposed legislation would clarify which digital assets fall under the jurisdiction of the Securities and Exchange Commission and which are overseen by the Commodity Futures Trading Commission—a longstanding issue that has complicated compliance for the industry.

Although lawmakers initially planned to advance the bill through the Senate Banking Committee earlier this year, negotiations collapsed after Coinbase CEO Brian Armstrong withdrew support, citing concerns over amendments that could restrict stablecoin reward programs.

The GENIUS Act: A New Regulatory Milestone

Unlike the CLARITY Act, the GENIUS Act has already become law. Signed by Trump last summer, it established the first federal regulatory framework for payment stablecoins, which are designed to mirror the value of the U.S. dollar.

This legislation mandates that issuers maintain sufficient liquid reserves and adhere to anti-money-laundering and risk management protocols.

Regulatory Developments and Ongoing Stalemate

The Office of the Comptroller of the Currency recently released a proposed rule detailing how banks and other regulated entities could issue and manage payment stablecoins under federal oversight.

“Maintaining American leadership in digital assets is a national priority, and it’s vital that the U.S. stays at the forefront,” said Ji Hun Kim, CEO of the Crypto Council for Innovation, in a statement to Decrypt.

Despite these regulatory moves, the broader market-structure bill remains in limbo. Hopes that negotiations between banking and crypto industry representatives would yield a compromise by early March have faded.

According to sources familiar with the discussions, the two sides remain deeply divided: banks are pushing for stricter limits on stablecoin yield offerings, while crypto advocates argue that such rewards are essential for the sector’s growth.

Without a breakthrough soon, industry observers warn that the likelihood of passing the CLARITY Act this year will diminish sharply as Congress turns its attention to the upcoming midterm elections.