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Eric Trump accuses U.S. banks of blocking stablecoin yields
Eric Trump, the son of the U.S. president, sharply criticized major American banks for attempting to restrict stablecoin yields. According to him, such actions deprive consumers of access to more attractive financial products.
In a post on X, he accused JPMorgan Chase, Bank of America, and Wells Fargo of lobbying against initiatives that would allow crypto platforms to pay interest on stablecoin balances.
Trump claimed that the American Banking Association and other lobbying groups are spending millions of dollars to push changes to the CLARITY Act that would ban stablecoin yields of around 4–5%. He also argued that traditional banks offer customers extremely low interest rates on deposits — roughly 0.01–0.05% annually — while receiving about 3.65% from the Federal Reserve.
It is worth noting that Eric Trump is a co-founder of the crypto platform World Liberty Financial, which issues the USD1 stablecoin and the WLFI token. The Trump family’s involvement in the project has previously raised concerns about potential conflicts of interest.
Banks call for equal regulation
Representatives of the banking sector argue that allowing yield-bearing stablecoins could move trillions of dollars in deposits from traditional banks into crypto platforms and potentially create financial stability risks.JPMorgan CEO Jamie Dimon previously said that if platforms hold customer funds and pay interest, they should be regulated the same way as banks.
However, Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, disagreed with this interpretation. He said that paying yield itself does not automatically make a platform a bank — the key issue is whether those funds are used for lending or other financial activities.
Why the stablecoin yield debate matters
The debate over stablecoin yields has become one of the key issues in negotiations around the CLARITY Act, a bill aimed at establishing a regulatory framework for the U.S. crypto market. Banks fear that yield-bearing stablecoins could become an alternative to traditional deposits and reshape the financial system. Meanwhile, the crypto industry argues that such products could increase competition in financial services and offer better savings options for users.Due to disagreements over this issue, the bill has already faced several delays. The White House is currently facilitating talks between banking representatives and crypto firms, but no final compromise has yet been reached.
Earlier, we reported that the White House criticized JPMorgan’s stance on stablecoin yields.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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