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The President of the United States, Donald Trump, has urged banks to “strike a favorable deal” with cryptocurrency firms to expedite the progress of the CLARITY bill concerning transparency in the digital asset market. He made this statement on his platform, Truth Social.
Trump emphasized that banks should seek a compromise with the crypto sector rather than oppose the provisions of the bill that allow crypto platforms to offer yields to stablecoin holders. He warned that otherwise, the CLARITY bill could remain stalled in the U.S. Congress for an extended period.
The President also expressed concern that the previously enacted GENIUS law, which regulates the issuance and circulation of stablecoins, might be jeopardized due to pressure from the banking sector. Trump vowed to prevent such an outcome.
The CLARITY bill has been under discussion for over a year. It aims to delineate the authority between the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) regarding oversight of crypto assets.
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The advancement of this initiative is complicated by objections from banks. Financial institutions fear that if stablecoin issuers begin to provide rewards for token ownership, depositors may withdraw their funds from traditional banks en masse, posing risks to financial stability.
Some Democrats have also voiced criticism of the bill. Notably, Massachusetts Senator Elizabeth Warren believes that such initiatives create a potential conflict of interest. She previously proposed banning high-ranking officials and their family members, including the President, from engaging in cryptocurrency transactions.
Jaret Seiberg, managing director of the TD Cowen research group, described Trump’s idea of “peace” between banks and crypto companies as constructive but expressed doubt that the President’s social media posts could resolve the legislative deadlock.
“For banks to agree to a version of the CLARITY bill that does not include a ban on yield payments by stablecoin issuers, personal involvement from President Trump will be necessary,” Seiberg stated.
Earlier, analysts from JPMorgan suggested that the passage of the CLARITY law could positively impact the crypto market, simplify access for large companies to digital assets, and support venture investments in the U.S.
