Donald Trump blasted the banks, demanded clarity on the passage of the law

Ripple CEO Brad Garlinghouse supported President Trump’s comments, saying they were in the public interest.

US President Donald Trump has accused the traditional banking lobby of violating the GENIUS Act and holding the CLARITY Act “hostage” to protect their profits, inserting himself directly into the legislative battle over stablecoin revenue.

The intervention marks a significant escalation in the fight over whether crypto platforms can offer interest bonuses to stablecoins, which experimental banks say will trigger a mass exodus from traditional savings accounts.

Trump hits back at banks against Stablecoin

In a post on Social Truth, Trump called the controversy an existential threat to American innovation.

“The Genius Act is being threatened and undermined by the banks and this is unacceptable – We will not allow it,” he wrote. “The U.S. needs to complete market structure as soon as possible. Americans need to get more bang for their buck.”

The GENIUS Act, signed into law in July 2025, created the first federal framework for stablecoins, but prohibited issuers from paying interest directly to holders. It left an important question unanswered: whether third-party platforms like Coinbase can make money for customers.

Banks then aggressively lobbied to include these “people” in the CLARITY Act, a broader market structure bill that would establish clear jurisdiction over digital assets.

Their position led to disagreements with some players in the crypto industry, which reached a boiling point in January when Coinbase CEO Brian Armstrong withdrew support for the bill ahead of an expected Senate reading, citing proposed amendments that would ban passive income in stablecoins.

The White House has set a deadline of March 1 for stakeholders to resolve their differences, but no public agreement has been reached by that date.

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“Banks should not try to undermine the Genius Act or hold the Clarity Act hostage,” Trump said. “They need to make a good deal with the Crypto Industry because it’s in the best interest of the American people.”

Earlier this year, Jeff Kendrick, global head of crypto research at Standard Chartered, warned that stablecoins could attract up to $500 billion in deposits from banks by 2028, with the most exposed regional US lenders.

As banks face cartel charges, industry rejoices

Trump’s statement drew immediate praise from crypto leaders, with Ripple CEO Brad Garlinghouse calling it “an incredibly clear message about what’s in the best interest of the American people.”

Senator Cynthia Lummis echoed that urgency, urging Congress to move quickly to pass the legislation. Meanwhile, Eric Trump, the president’s son and co-founder of World Liberty Financial, accused big banks of losing the “digital finance race” in a “public panic”.

However, some, such as Charles Hoskinson, criticized the legislation, with Cardano founder describing it as a “horrible and wasteful bill” and warning that the “security by default” framework would trap new projects under the SEC’s jurisdiction and “destroy all future American cryptocurrency projects.”

He argued that while legacy tokens like Cardano may be grandfathered, future innovations will be forced overseas. This puts him at odds with Garlinghouse, who claimed that “enlightenment conquers chaos” and that industry would not be “absolutely the enemy of progress.”