‘Move on beyond greed!’ White House blasts banks over stablecoin yield opposition

The White House and banks are still not on the same page on the stablecoin yield deal.

Unfortunately, the ongoing fallout could further derail momentum for the market structure bill, the CLARITY Act.  

Stablecoin yield fallout: White House vs. banks

On the 17th of April, President Donald Trump’s crypto advisor, Patrick Witt, stressed that the recent stablecoin yield deal adequately addressed the banks’ concerns about the deposit flight. 

For the unfamiliar, the proposal restricted stablecoin yield to activity and not ‘just idle balances.’ Although Coinbase opposed the narrow yield restrictions, there haven’t been any public details on any changes to the compromise, at least as of the time of writing. 

The details were scheduled to be released this week but were delayed until the Senate Banking Committee (SBC) declares a calendar for markup. 

However, according to PunchBowl News, the banks were opposed to the latest deal. Notably, some banking trade associations were reportedly raising concerns about the latest version of the stablecoin yield deal with other members of the SBC. 

Responding to banks’ behind-the-scenes lobbying against the latest yield deal, Witt castigated, 

The stablecoin yield issue delayed the January markup attempt and has remained a stumbling block since then. Still, to advance before the midterm elections, the bill has to be cleared by the Senate Banking Committee and move to a final floor vote.

Afterward, the House will also vote on it before it is forwarded to the President’s desk to be signed into law. But the Congress calendar is now limited ahead of the November elections. 

As such, there is fear that failure to clear markup by the end of April and a final Senate floor vote by May would likely stall the bill until 2027. 

Stablecoin market tops $320B

That said, the stablecoin market supply hit a new high of $321 billion. The sector has added over $70 billion since the stablecoin law, the GENIUS Act, was passed into law last year.

And the growth has been explosive for yield-bearing money-market-like tokens such as Sky (formerly Maker), sUSDS, and Circle’s USYC. 

Final Summary

• Trump’s crypto advisor called banks ‘ignorant and greedy’ for the persistent lobbying against the latest stablecoin yield deal, which addresses their deposit flight concerns.
• Despite uncertainty on the CLARITY Act, stablecoin market supply hit a record level of $321 billion.