“The country needs to create a market structure as soon as possible,” he claims. “Americans should get more bang for their buck,” he says.
This relates to the Clarity Act, a proposed piece of crypto legislation. The bill is primarily about clearly delineating the respective jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over crypto assets. In practice, however, the bill is stalled over bonuses that crypto holders may or may not receive to essentially compensate for the fact that crypto is considered digital cash and interest cannot be collected.
As Yahoo Finance notes, representatives of banks are withholding their blessings as crypto companies are essentially trying to reverse engineer interest by offering rewards of 4-5%, which could prompt people to move their money out of bank accounts that offer relatively low yields.
“Banks are making record profits, and we will not allow them to undermine our powerful crypto agenda, which will go to China and other countries if we don’t take care of the Clarity Act,” Trump’s Truth Social post said.
He also wrote that the banks are holding the bill “hostage” and that it is necessary if we want to maintain the crypto industry in the US.
On February 10, a meeting was held at the White House where representatives from the crypto and banking industries discussed the issue. A statement from the American Bankers Association published shortly after the meeting said market structure rules should exist, but they should embrace financial innovation “without undermining the safety and soundness, and without jeopardizing the bank deposits that drive local lending and economic activity.”
The Trump administration had set an unofficial deadline of February 28 to settle the yield debate and produce a bill that could pass. MLAs will soon take summer vacation and when they return, their focus will be on midterm elections.
One of the Trump family’s business ventures launched its own stable coin, USD1, last year.
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