US President Donald Trump has taken the spotlight by supporting the crypto industry in the stablecoin yield dispute, insisting that people should get more for their money.
The dispute stems from the Clarity Act, a bill designed to provide a clear regulatory framework for cryptocurrencies in the US.
Some stablecoin issuers want to pay their customers interest or rewards to attract more users.
But banks, which are enjoying record profits, are trying to close the loophole, worried that their customers will switch to the digital world.
Trump made no secret of the fact that if the law fails, crypto interest could move to other countries, including China.
The President's support has clearly raised political tensions, especially since his son, Eric Trump, has slammed banks for trying to prevent crypto companies from offering real rewards to their users.
However, this fight is about more than just economic principles.
It also touches on family interests, as Trump's company, DT Marks DEFI LLC, owns 38% of the USD1 stablecoin issuer through World Liberty Financial.
Critics from Democrats have accused Trump of a conflict of interest, but the White House insists his assets are controlled by trusts managed by his children.
Amid the impasse, Coinbase withdrew its support for the Clarity Act over its ban on passive yield payments, causing the vote to be postponed indefinitely.
The failure clearly threatens Trump’s plan to make the US the ‘Crypto Capital of the World’.
The stablecoin battle is not just about money or technology. It is symbolic of an age-old battle between traditional institutions comfortable with their fixed profits and the crypto world that promises freedom and higher returns.
Trump has also positioned himself as a pro-crypto force, trying to ensure that America does not fall behind in the global digital race.
