Trump Blames Banks for Delaying Senate Crypto‑Market‑Structure Bill
Washington, D.C., March 4 — 2026 – President Donald Trump used his Truth Social platform on Tuesday to accuse major banking interests of blocking progress on a Senate‑level crypto‑market‑structure bill, arguing that the deadlock threatens the “GENIUS Act” and the broader U.S. stable‑coin agenda.
What Trump Said
In a post that quickly circulated among crypto‑focused media outlets, Trump claimed that “the GENIUS Act is being threatened and undermined by the banks, and that is unacceptable – we are not going to allow it.” He added that the United States must “get market structure done, ASAP,” warning that continued obstruction could push innovative crypto policy toward rivals such as China.
Legislative Background
- GENIUS Act (July 2025) – Passed by Congress, the bill creates a regulatory pathway for stable‑coin issuers while prohibiting those issuers from offering direct yield or interest to holders. Third‑party platforms, including crypto exchanges, may still provide yield products tied to stable‑coins.
- CLARITY Act (House version, July 2025) – Mirrors the GENIUS Act’s language but was adopted with bipartisan support (78 Democratic votes). The House version reaffirms that stable‑coins are payment devices, not investment vehicles, and should not pay interest.
- Current Status – The Senate Banking Committee postponed a markup after Coinbase withdrew its backing in January, leaving the bill without a scheduled hearing.
Banking Industry’s Position
Banking trade groups argue that the existing exemption for exchange‑offered yield creates a “legal loophole” that could divert deposits from traditional banks to stable‑coins, potentially destabilizing the banking system. Their preferred amendment would extend the ban on yield payments to all stable‑coin‑related products, regardless of the offering party.
Crypto Industry Response
Crypto lobbyists have largely resisted the banks’ proposed amendment. Coinbase, a leading industry voice, pulled its support for the Senate bill in January over the yield‑payment issue, citing concerns that a blanket ban would stifle innovation and limit consumer choice. Other industry participants have engaged in a series of three White House meetings this year, seeking a compromise on language that would satisfy both regulators and market participants, but no consensus has emerged.
Political Stakes
Trump has framed the passage of the market‑structure legislation as a signature achievement that could be leveraged in the November midterm elections. Crypto‑related political action committees have reportedly raised more than $200 million to back candidates who favor a permissive regulatory environment for digital assets.
Republican Representative French Hill, chair of the House Financial Services Committee, suggested on Tuesday that the Senate could adopt the House‑passed CLARITY Act if it cannot move forward with its own version. Hill emphasized that the bill’s language already aligns with the GENIUS Act’s bipartisan intent.
Analysis
- Regulatory Uncertainty Remains – The stalemate highlights the tension between the desire to integrate stable‑coins into the U.S. financial system and banks’ concerns over potential disintermediation.
- Industry Fragmentation – While some major exchanges are ready to offer yield products, the lack of a unified industry stance on how such products should be regulated hampers legislative momentum.
- Political Leverage – Trump’s public criticism may pressure Senate leaders to prioritize the bill, yet any accelerated timeline will still need to reconcile divergent stakeholder interests.
- International Competition – Delays could cede a competitive edge to jurisdictions like the EU or Singapore, which are advancing clearer stable‑coin frameworks.
Key Takeaways
- Trump’s accusations target banks for allegedly blocking the Senate’s crypto market‑structure bill, framing it as a threat to U.S. leadership in digital finance.
- The GENIUS Act provides a regulated path for stable‑coin issuers but bans them from offering direct yield; exchanges can still provide yield‑linked products.
- Banking groups seek to close the perceived loophole by extending the yield ban to all stable‑coin offerings, citing systemic risk.
- Crypto lobbyists, led by entities such as Coinbase, oppose the broader ban, fearing it would limit innovation and market growth.
- Legislative deadlock persists after the Senate Banking Committee postponed a markup; no new hearing date has been announced.
- Political dynamics—including upcoming midterms and sizable crypto PAC fundraising—may intensify pressure on lawmakers to resolve the impasse.
The coming weeks will likely determine whether the Senate adopts the House’s CLARITY Act language, negotiates a compromise with banking interests, or continues to defer action, with significant implications for the future of stable‑coin regulation in the United States.
Source: https://cointelegraph.com/news/trump-takes-swipe-banks-over-stalled-crypto-bill?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
