United States cryptocurrency legislation has stalled in the Senate as banks said they opposed crypto companies offering yields.
The Clarity Act, another cryptocurrency regulation bill following last year’s Genius Act, includes a provision allowing crypto businesses to offer yield-bearing products. While the White House has recommended a compromise that would mainly allow yields on crypto in peer-to-peer payments, major U.S. banks have rejected it, Reuters reported.
“The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage. They need to make a good deal with the Crypto Industry because that’s what’s in best interest of the American People,” wrote U.S. President Donald Trump on social media.
U.S. banks could lose around $6.6 trillion in deposits to stablecoins if crypto companies offer a yield, according to a 2025 U.S. Treasury report.
These banks are already set to lose $500 billion in deposits to stablecoins by the end of 2026, Standard Chartered has predicted, with losses concentrated in smaller regional banks.
The White House’s suggested compromise would prevent crypto companies from offering yields on idle holdings, but would permit yields on peer-to-peer payments. Cryptocurrency companies have been willing to accept this, per Reuters.
The House of Representatives passed the Clarity Act last year, while the Senate Banking Committee continues to hold talks on the bill.
While JPMorgan analysts had said earlier this month that the Clarity Act would likely pass by mid-2026, Trump’s comments may not push the bill forward. “We do not see this posting as unsticking the bill,” wrote TD Cowen analyst Jaret Seiberg.
