Eric Trump, the son of U.S. President Donald Trump, has criticized banks’ strong opposition to stablecoin yield.
In a statement on the 4th of March, Eric Trump said the banks’ fight against stablecoin yield is “anti-retail, anti-consumer, and anti-American.”
He added,
“The banks are desperately targeting crypto/stablecoins, where platforms plan to offer 4–5%+ yields or rewards. Fortunately, the big banks are losing this fight as customers wake up to the games...”
The rift between crypto and banks has worsened over the past few months and threatened to stall the crypto market structure bill, the CLARITY Act.
There have been ongoing negotiations to reach a stablecoin yield deal between the two industries to advance the bill. However, the recent grant of access to Fed payment rails to Kraken has irked the banks.
Banks oppose Kraken’s access to Fed payment rails
On Wednesday, Kraken became the first crypto-native firm to gain access to the Fed’s payment rails. It had applied for a license five years ago and only received approval this week.
Although crypto supporters hailed the update as a watershed moment for the sector, banks, through the American Bankers Association (ABA), strongly opposed it.
According to the banking lobby, the move was rushed and could expose the financial system to risks.
Interestingly, President Trump also recently warned the banks against undermining his crypto agenda.
He cautioned the bank lobby against pushing to amend the stablecoin law, the GENIUS Act, or holding the CLARITY Act hostage over stablecoin yield.
Will banks stall the crypto bill?
Whether banks will come back to the negotiating table to advance the CLARITY Act remains unclear.
However, the recent developments don’t augur well for the previously optimistic outlook of the potential passage of the CLARITY Act by mid-2026.
Even so, prediction site Polymarket showed a 71% chance of the CLARITY Act becoming law in 2026.
However, the odds had dropped sharply from 78% to 71% in the past two days, amid a deepening rift between banks and crypto alongside the Trump Administration.
That said, the recent crypto market recovery could be affected if the rift deepens and derails the CLARITY Act’s progress.
Final Summary
- Eric Trump joined his father, U.S. President Donald Trump, in slamming banks’ strong opposition to stablecoin yield.
- It is unclear whether banks will withdraw support for the CLARITY Act after opposing Kraken’s limited access to the Fed’s payment rails.
