Former U.S. President Trump reiterates support for crypto industry legislation, but disagreements between companies like Coinbase and the banking sector have slowed the bill's progress

Summary

President Trump has reaffirmed his support for the FIT21 and CLARITY Acts to establish a US crypto framework The Block+ 2The Block. However, progress is stalled in the Senate Banking Committee due to a fierce dispute between crypto firms like Coinbase and the banking sector over stablecoin rewards The Block+ 2. Banks fear that allowing crypto platforms to offer yields will trigger a massive flight of traditional deposits NewsBTC.

Impact Analysis

So we’re seeing a classic structural clash: the White House is pushing for a digital asset framework, but the traditional banking lobby is digging in its heels over ‘deposit flight’ NewsBTC+ 2NewsBTC. The real battlefield is the CLARITY Act’s stance on stablecoin rewards. Banks are terrified that if firms like Coinbase can pass through yields, they’ll lose their cheap deposit base NewsBTC. We’re seeing a desperate attempt at a compromise—banning passive interest while allowing ‘activity-based’ rewards—to get this through the Senate Banking Committee before the midterms benzinga_article.

The signal here is that even a ‘crypto-friendly’ administration can’t simply steamroll the banking sector’s systemic concerns. If this bill stalls past May, Senator Lummis’s warning about a 2030 delay becomes a very real risk CoinLive. For the portfolio, this makes Coinbase a binary play on legislative timing. Their recent pivot to support the Act suggests they see a path to a regulatory moat, even with yield restrictions NewsBTC. Bottom line: don’t bet on a clean sweep; bet on a watered-down bill that favors ‘compliant’ giants over pure DeFi.