Trump sides with crypto firms in trillion-dollar battle with banks over stablecoin yield
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The dispute centers on whether crypto firms like Coinbase can offer yields on stablecoins, which banks warn will siphon trillions of dollars from the industry.
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In this article COIN JPM BAC Follow your favorite stocks CREATE FREE ACCOUNT US President Donald Trump boards Air Force One before departing Palm Beach International Airport in West Palm Beach, Florida, on March 1, 2026, on his way back to Washington, DC. Mandel Ngan | Afp | Getty Images President Donald Trump has thrown his support behind crypto firms in their high-stakes battle with U.S. banks over whether they can offer interest-like returns on stablecoins. Trump, in a social media post late Tuesday, ratcheted up pressure on banks to relent on the stablecoin yield issue. That's the key point of contention holding up passage in Congress of the Clarity Act, which is a companion bill to the Genius Act approved last year, setting up a framework for regulated stablecoins. "The Genius Act is being threatened and undermined by the Banks, and that is unacceptable," Trump said in his post. "They need to make a good deal with the Crypto Industry because that's what's in best interest of the American People." Coinbase shares surged more than 11% in early trading Wednesday, while shares of JPMorgan Chase and Bank of America fell less than 1%. While Trump's decision to back the crypto industry could sway members of his Republican Party in the GOP-led Congress, it's unclear whether his support is enough to ensure the bill's passage. The move also raises fresh questions over potential conflict of interests, as the president and his family have reportedly generated hundreds of millions of dollars in wealth from interests in firms including the crypto platform World Liberty Financial. The dispute between the industries centers on whether crypto firms like Coinbase can offer yields on stablecoins. While crypto companies see it as a consumer-friendly innovation that will let people earn money on their idle funds, banks have warned that the competing product could siphon trillions of dollars from their industry. Executives from JPMorgan and Bank of America, the two largest American ...
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