- Eric Trump has called out big banks for lobbying against high stablecoin yields via the CLARITY Act.
- Banks pay just 0.01%–0.05% APY, while stablecoin protocols offer over 4% yields.
- The CLARITY Act has stalled in the U.S. Senate amid debate over stablecoin yields.
Eric Trump has joined other pro-crypto American leaders in advocating for high stablecoin yields through the CLARITY Act. As the CLARITY Act debate gets heated up in the U.S. Senate, Eric highlighted that big banks are losing the fight to protect their profit margin.
“Next time you see a big bank dropping billions on a shiny new Midtown Manhattan HQ, you know exactly where that money comes from: the non-existent interest rate they ‘pay’ you! Fortunately, the big banks are losing this fight as customers wake up to the games,” Eric stated.
Eric Joins President Trump in Advocating for Higher Stablecoin Yields
Eric has joined his father, President Donald Trump, to advocate for higher, more stable yields on stablecoins through the CLARITY Act. According to Eric, big banks cannot continue to pay a flat rate of between 0.01% and 0.05% APY.
Eric highlighted that Web3 protocols offer higher yields on stablecoin deposits, often over 4% APY. Furthermore, Eric believes that big banks – led by JPMorgan Chase, Bank of America, Wells Fargo – should aim to offer higher yields since the Federal Reserve pays at least 4%.
Earlier this week, President Trump stated that banks should not be trying to undercut the GENIUS Act or hold the CLARITY Act hostage.
What’s Next for the CLARITY Act?
The CLARITY Act, which follows the GENIUS Act passed last year to regulate the issuance of stablecoins, has stalled in the U.S. Senate due to bipartisan delays. After passing the House of Representatives last year, the CLARITY Act has faced intense scrutiny in the U.S. Senate primarily due to the stablecoin yield debate.
Already, the CLARITY Act in its current form has divided the crypto leaders led by Brad Garlinghouse, Ripple Labs CEO, and Charles Hoskinson, founder of the Cardano (ADA) network. Earlier this week, Hoskinson stated that the CLARITY Act, in its current form, is anti-crypto growth in the United States.
Meanwhile, Brad Garlinghouse, CEO of Ripple, has supported the legislation, arguing that even imperfect regulatory clarity is better than the current uncertainty. Amid the growing debate on the crypto market structure bill, pro-Web3 Senator Cynthia Lummis has urged Congress to expedite the CLARITY Act to pave the way for a new financial system.
Cynthia Lummis said the United States cannot afford delays and urged Congress to move quickly to pass the CLARITY Act, emphasizing the need to position the country as the global hub for digital assets.
Related: Hoskinson Warns CLARITY Act Makes New Tokens Securities by Default
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Source: https://coinedition.com/eric-trump-slams-banks-low-rates-backs-stablecoin-yields/
