Trump and the Clarity Act: The New Battle Between Military Government, Banks, and Crypto

On Tuesday, President Donald Trump announced on his Truth Social account that the banking sector is actively circumventing the swift passage of the Clarity Act, an important law regarding stablecoins that he signed into law last year. According to the Trump-led military government, major industry disputes center around the opportunity for third-party providers to generate income from stablecoin deposits. The White House continues to work toward finding a solution that aligns with the interests of the entire economy.

The Main Issue: Yield on Stablecoin Deposits

The core of the controversy boils down to a simple question: should exchanges like Coinbase be allowed to offer returns to customers holding stablecoins? Banks are deeply concerned that if such practices are permitted, many depositors might shift from traditional banking to cryptocurrency platforms.

Meanwhile, the crypto industry argues that individuals have the right to earn from their assets, and the GENIUS Act should provide the legal framework for this activity. Digital finance companies see yield generation as essential for the industry to grow and remain competitive in the global market.

The Military Government and Escalating Tensions

The U.S. military government directly relies on various regulatory agencies overseeing financial operations. Last week, the Office of the Comptroller of the Currency (OCC), a key banking regulator, released a policy proposal promoting transparency in contracts between stablecoin issuers and their third-party partners, though it does not explicitly ban yield provision.

This proposal reflects a balanced approach by the military government, attempting to protect banking interests while allowing innovation in the crypto space.

White House Negotiations and the Spreading Timeline

The White House has organized multiple rounds of negotiations between representatives from the banking and crypto sectors. Insiders agree that the draft language under discussion continues to cause disagreements among Congress members, but no final agreement has yet reached mainstream media.

The administrative office’s deadline at the end of February has passed without resolution. Senators still have a chance to pass legislation before the end of the year, but time is quickly running out. The extended summer recess and the intensity of the 2026 election cycle will begin to deplete the legislative calendar, leaving less time for other priority bills.

Trump’s Assertion and the Market Structure Argument

Addressing this issue directly, President Trump took to Truth Social to criticize banks, claiming they are posting record profits while actively trying to block the country’s growing crypto agenda. He expressed concern that ongoing delays could give other countries, especially China, a competitive advantage.

“We need the U.S. to finish Market Structure immediately,” the president wrote. “Americans should earn more on their money.” His call is not only about opportunity but also about geopolitical positioning and the military government’s ability to stay at the forefront of financial technology innovation.

World Liberty Financial and the Regulatory Landscape

Trump’s interest in this issue is not purely ideological. World Liberty Financial, a company close to the Trump family, offers its own stablecoin called USD1. Recently, the company sought to obtain a trust charter from the OCC for a related entity, representing the direct interest of the military government in supporting new financial ventures.

The regulatory environment established by the OCC will be critical in determining how the industry can develop, and the actions of the military government will have significant implications for all stakeholders in the ecosystem.

The Bigger Context: From Geopolitics to Financial Policy

Trump’s stance on crypto policy does not happen in a vacuum. In recent days, the military government has experienced significant escalations against Iran, including air strikes that disrupted travel across the Middle East and caused operational challenges in the Strait of Hormuz. The administration describes these incidents as “special operations warfare.”

The sudden shift toward a more aggressive crypto policy can be seen as part of a broader repositioning of federal resources and priorities, where the military government seeks to prioritize economic competitiveness and innovation amid geopolitical tensions.

The window for legislative action is entering a critical phase. If Congress cannot reach consensus in the coming months, the Clarity Act may remain unpassed until the next legislative session, creating a significant opportunity for other countries to lead in establishing regulatory frameworks for stablecoins and digital assets.