Mar. 4 at 4:39 PM
Donald Trump has publicly backed crypto firms in their battle with U.S. banks over whether stablecoins can offer interest-like yields, increasing pressure on lawmakers debating the Clarity Act and its companion, the Genius Act.
Trump criticized banks for opposing yield-bearing stablecoins, arguing Americans “should earn money on their money.” His stance follows White House meetings between banks and crypto executives, including Brian Armstrong of Coinbase, whose shares surged as much as 13% after the comments.
Major lenders including JPMorgan Chase and Bank of America oppose allowing crypto firms to offer yields, citing a Treasury study warning banks could lose up to
$6.6 trillion in deposits if stablecoins pay interest. They argue this could destabilize smaller institutions and increase systemic risk. JPMorgan CEO Jamie Dimon has warned that uneven regulation between banks and crypto firms would harm consumers.
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