Trump on Stablecoin Yield Dispute: “Americans Should Earn More Money on Their Money” as Clarity Act Stalls

US President Donald Trump publicly backed the crypto industry in its ongoing dispute with banks over stablecoin yield, intensifying political tensions around the proposed Clarity Act — legislation designed to establish a comprehensive regulatory framework for digital assets in the United States.

In a post on Truth Social, Trump said Americans “should earn more money on their money,” accusing banks of attempting to undermine his administration’s crypto agenda and warning that delays could push innovation offshore.

Stablecoin Yield at the Center of Regulatory Tensions

The dispute centers on whether stablecoin issuers and crypto platforms should be permitted to offer yield on digital dollar holdings.

The previously enacted Genius Act prohibited stablecoin issuers from paying interest, reflecting concerns from traditional banks that higher-yielding stablecoins could divert deposits from checking and savings accounts. However, ambiguity remained over whether third-party crypto platforms could offer yield-like incentives.

Banking groups have since lobbied lawmakers to tighten language in the Clarity Act to close what they view as a regulatory loophole. Crypto firms have pushed back, arguing that banks are attempting to revisit provisions settled under earlier legislation.

Compromise Efforts and Political Fallout

A revised draft of the Clarity Act earlier this year proposed banning passive yield on stablecoins while permitting rewards tied to transactional activity, including payments, transfers, remittances, and decentralized finance liquidity provision.

However, Brian Armstrong, CEO of Coinbase, withdrew support for the bill ahead of a scheduled vote, citing concerns over the passive yield ban. Following that move, Tim Scott, Chair of the Senate Banking Committee, postponed the vote indefinitely.