The battle for stablecoin yields escalates: Eric Trump angrily criticizes banks as "anti-American," and crypto regulation bills stall.
March 5 News: The conflict between U.S. crypto regulation and the banking industry has escalated again. Eric Trump, co-founder of World Liberty Financial (WLFI), recently publicly criticized traditional banks’ opposition to stablecoin yield rates, claiming this is an attempt to maintain a “monopoly on low interest rates,” and even outright called this behavior “un-American.” At the same time, President Trump also strongly criticized banking lobbying groups, accusing them of trying to block key crypto regulation legislation.
Eric Trump posted on X that major U.S. banks typically offer savings account interest rates of only 0.01% to 0.05%, while the Federal Reserve pays over 4% interest to the banking system. This huge spread generates significant profits for banks but does not benefit ordinary savers. He named institutions like JPMorgan Chase, Bank of America, and Wells Fargo, accusing these financial giants of lobbying on a large scale to prevent American consumers from earning higher savings returns.
In his view, stablecoins and related crypto financial products offer yields of 4% to 5% or even higher, directly competing with traditional banking systems. Eric Trump stated that the American Bankers Association (ABA) and other lobbying groups are spending millions of dollars to restrict stablecoin yield mechanisms through legislation, aiming to prevent funds from flowing into the digital asset sector.
Meanwhile, legislative debates over the structure of the crypto market continue to intensify. In July 2025, the U.S. House of Representatives supported bipartisan passage of the CLARITY Act, which aims to clarify the responsibilities of the SEC and CFTC in digital asset regulation. However, progress has been slow after the bill was sent to the Senate Banking Committee, with one core dispute being whether stablecoins can pay interest or rewards to holders.
The Senate version of the Market Structure Act imposes strict restrictions on stablecoin yields, including prohibiting interest payments solely based on account balances and limiting reward mechanisms. This clause has caused clear disagreements between the banking industry and the crypto sector. The White House had set March 1, 2026, as the deadline for reaching a consensus on stablecoin yield rules, but no breakthrough has been achieved so far.
Trump previously also publicly stated that the banking industry should not attempt to weaken the GENIUS Act, nor hinder the progress of the CLARITY Act. He emphasized that the U.S. needs to establish a regulatory framework conducive to digital asset innovation, or risk falling behind in the global crypto financial competition.
Currently, the Senate Banking Committee is considering holding a hearing in mid to late March. Market consensus suggests that if Congress cannot resolve the stablecoin yield dispute before the election season heats up, regulatory uncertainty for the U.S. crypto industry may continue.
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