Trump Backs Crypto Firms Over Banks in Stablecoin Yield Fight
Donald Trump sided with crypto firms against banks in a bitter dispute over Stablecoin yield rules. The 79-year-old president accused banks of undermining his crypto agenda while his family's World Liberty Financial issues its own Stablecoin.
Key Takeaway
Trump's family stake in a Stablecoin issuer puts him at the center of the banking fight.
Donald Trump accused banks of undermining his crypto agenda after they pushed back on rules that would let crypto firms pay Stablecoin rewards. The president wrote on Truth Social that Americans should earn more money on their holdings, and that banks hitting record profits won't be allowed to block crypto firms from offering benefits. Trump said the Genius Act—last year's Stablecoin legislation that banned issuers from paying yield—is being threatened by banks. He warned the US needs to get market structure done fast or risk losing to China.
The fight centers on whether crypto exchanges can pay rewards on stablecoins. The Genius Act banned issuers from paying yield, but left ambiguity on whether third-parties like exchanges could offer rewards. A January draft of the Clarity Act appeared to compromise by banning passive yield while allowing rewards tied to transactions, payments, and DeFi liquidity provision. Coinbase CEO Brian Armstrong withdrew support for the bill on the eve of the scheduled vote, citing the passive yield ban among other issues. Senator Tim Scott delayed the Clarity Act vote indefinitely.
Eric Trump, World Liberty Financial co-founder and the president's son, posted that big banks have screwed customers for years with near-zero yields and exorbitant fees while blocking crypto platforms from offering real benefits. He called banks the greatest hypocrites in mass panic over losing the digital finance race. World Liberty Financial issues the USD1 stablecoin, and DT Marks DEFI LLC—the Trump family company—holds a 38% stake in the venture.
Deputy Press Secretary Anna Kelly defended the president, stating his assets sit in a trust managed by his children with no conflicts of interest. Democrats have accused Trump of self-dealing and foreign influence over his family's crypto involvement while pushing pro-crypto legislation.
Crypto companies claimed banks were relitigating components of the bill more than six months after it was signed. The White House held meetings with both crypto and banking representatives in January 2026 as the dispute intensified over how to interpret the Genius Act's yield ban.
This article was written based on reporting from Dlnews.
