Donald Trump slammed US banks over stalled cryptocurrency legislation.
Donald Trump urged banks to make a deal with the cryptocurrency industry, stating that undermining the GENIUS Act was "unacceptable."
March 4, 2569 US President Donald Trump A critic of banks took to the Truth Social platform regarding the GENIUS Act, a bill passed by Congress in July to regulate stablecoins but which has stalled due to controversy surrounding compensation for stablecoin holders.
“The Genius Act is being threatened and undermined by banks, and that is unacceptable. We will not let this happen. The U.S. needs to fix its market structure as soon as possible. Americans deserve better returns on their money while banks are making record profits, and we will not allow them to undermine our powerful cryptocurrency agenda, which could ultimately flow to China and other countries if we don't get the Clarity Act sorted out.”
“The Genius Act was a crucial first step for the United States in making our country the crypto capital of the world, and pushing through the Clarity Act is the next step in achieving this mission, and most importantly, to keep this large and powerful industry within our nation.”
“Banks shouldn’t try to undermine the Genius Act or hold the Clarity Act hostage. They need to make good deals with the crypto industry because that’s what’s in the best interest of the American public.”
This industry cannot be taken away from the American people while it is nearing true success. Trump posted the message via Truth Social.
Source: https://truthsocial.com/@realDonaldTrump/posts/116167496865556148
Trump hailed the GENIUS Act as his masterpiece in attracting crypto companies to operate in the U.S. The law explicitly provides regulatory framework for stablecoin issuers but prohibits direct returns to holders. However, third-party platforms, such as cryptocurrency exchanges, can still offer returns to users holding stablecoins.
While banks are arguing this is a “legal loophole” and are pressuring the Senate’s crypto market infrastructure bill to include a ban on all stablecoin payouts, the House of Representatives passed its own version of the bill in July, under the name CLARITY Act.
Executives and lobbyists in the cryptocurrency industry are opposing attempts by banks to include a ban on stablecoin compensation in legislation. Major cryptocurrency company Coinbase withdrew its support for the bill in January over this issue.
Since then, the bill has been stalled after the Senate Banking Committee postponed its consideration of the bill's details following Coinbase's withdrawal of support, and a new hearing date has not yet been set.
The banking sector argues that the payout of stablecoins would cause money to flow out of bank deposit accounts into stablecoins, potentially impacting the stability of the banking system. Cryptocurrency groups and banks have met at the White House three times this year to try to finalize the wording of the legislation that could push the bill forward, but so far no agreement has been reached.
Trump is pushing for this bill to pass in order to use it as a policy achievement in his November midterm election campaign, with crypto lobbying groups raising more than $200 million to support candidates who support the industry.
sideHouse Representative French Hill, a senior Republican and chair of the House Financial Services Committee. Speaking at an event on Tuesday, he said the Senate should consider passing the House's version of the bill if it cannot push its own version forward.
Hill noted that the House Clarity Act reaffirmed the wording of the GENIUS Act, based on bicameral and bipartisan cooperation, that stablecoins are blockchain-based payment instruments, not investment instruments, and will not generate interest on their own.
"If the Senate cannot reach a straightforward conclusion, I recommend using the wording we passed in the House of Representatives' Clarity Act, which received 78 Democratic votes, and using that as a solution." he said
refer: htruthsocial.com , cointelegraph.com
