Eric Trump, co-founder of family-backed crypto firm World Liberty Financial and son of President Donald Trump, has amplified criticism of banks as Congress debates how to regulate stablecoin rewards. In a post on X this week that tagged his company, he accused banks of “desperately targeting” cryptocurrencies and stablecoins, echoing his father’s earlier complaint that banks were holding up a market structure bill.
At the heart of the dispute is whether stablecoin issuers should be allowed to offer yields or other rewards to users. Many in the crypto industry oppose proposals that would ban those rewards, arguing such a ban would prevent platforms from providing incentives that attract and retain customers. Banking groups counter that paying interest-like rewards on stablecoins could disrupt traditional bank credit models and create risks of deposit outflows.
Attempts to resolve the issue have so far stalled. Three meetings between White House officials and representatives from both the banking and crypto sectors failed to produce an agreement, contributing to delays in advancing market structure legislation. The package, known in the House as the CLARITY Act after passing last July, has been further complicated by a 43-day government shutdown and disputes over ethics provisions, tokenized securities, and the stablecoin language.
In January the Senate Agriculture Committee moved forward its version of the market structure bill, but the Senate Banking Committee postponed its markup and had not rescheduled it as of Thursday. Lawmakers will likely need to reconcile differing committee versions before the full Senate can vote.
A spokesperson for World Liberty Financial, responding to questions about Eric Trump’s post, said the company is not a political organization and that Eric Trump has been open about his reasons for founding the firm.
The clash over stablecoin yields remains a major sticking point in broader crypto legislation. Industry leaders, banking groups, and policymakers continue to press competing perspectives as Congress seeks a compromise that addresses financial stability concerns while accommodating innovation in digital assets.