Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The son of the U.S. President and co-founder of the stablecoin issuer USD1, World Liberty Financial, Eric Trump has criticized major American banks that seek to prevent stablecoin holders from earning yields similar to those from traditional bank deposits.
Trump Jr. urged JPMorgan Chase, Bank of America, and Wells Fargo to cease obstructing the Senate from passing a bill known as CLARITY, which would allow American crypto platforms to offer interest on stablecoin deposits at rates of 4-5%. According to the President’s son, banks are spending significant amounts to hinder the progress of CLARITY while simultaneously offering very low returns on deposits.
“Large banks are making every effort to prevent Americans from receiving higher yields on their savings while also attempting to deprive customers of bonuses and privileges. Banks are providing record-low interest rates on standard savings accounts (often 0.01–0.05% annually), even though the Federal Reserve pays them 4% or more. This is an anti-retail, anti-consumer, and frankly anti-American policy,” Trump Jr. stated on social media platform X.
Related Posts
Eric assured his followers that “billions of dollars” for offices in downtown Manhattan have emerged due to the excessively low interest rates “that they pay you.”
American banks and cryptocurrency firms have been unable to reach an agreement on whether to allow clients to earn interest from holding stablecoins, similar to bank deposits. As a result, the consideration of the CLARITY cryptocurrency market regulation bill has been delayed. The White House has repeatedly facilitated discussions between representatives of the financial market and crypto companies, but no compromise has been achieved. Banks maintain a firm stance, arguing that permitting interest payments on stablecoins would lead to a withdrawal of trillions of dollars from banks and pose a threat to the financial stability of the U.S.
President Donald Trump, like his son, has advocated for bankers to reach a compromise and stop lobbying against interest payments to stablecoin holders. The company World Liberty Financial, owned by the Trump family, is the issuer of the dollar stablecoin USD1, which has entered the top five by market capitalization with a figure of $5 billion.
