President Donald Trump recently urged Congress to urgently pass the CLARITY Act, the first comprehensive regulation of the U.S. cryptocurrency market. The bill was originally expected to be passed next month, but is currently stalled in the Senate due to disputes over some provisions.
The main issue at stake is the stablecoin returns offered by crypto platforms. Currently, crypto platforms offer stablecoins with an annual return of about 5%, while regular bank checking accounts offer only about 0.1%.
Major banks such as JPMorgan and Bank of America have warned that the high returns on stablecoins could lead to a large shift of capital from traditional banking systems to the crypto market.
However, Trump criticized the banking industry’s position as “unacceptable” and stressed that the United States needs to take urgent action to maintain its competitiveness in the global digital asset market.
