President Trump has signaled a potential bypass of Congress to advance a U.S. stablecoin regulatory framework amid rising geopolitical tensions. Trump criticized traditional banks for obstructing the GENIUS and CLARITY Acts, warning that delays could shift emerging industries to countries like China. The conflict centers on whether stablecoins paying interest should be classified as banks, a stance opposed by banks like JPMorgan Chase.
In response, the White House, through Digital Assets Advisor Patrick Witt, emphasized that stablecoin issuers under the GENIUS Act are prohibited from lending or using reserve funds for investments, maintaining a "full reserve" status. With the CLARITY Act stalled in Congress, Trump has appointed Paul Atkins as SEC Chair and Michael Selig to oversee the CFTC, aiming to establish a unified regulatory framework by spring 2026. This move could redefine the U.S. financial system's power dynamics, challenging traditional banking structures.
Trump Considers Bypassing Congress for Stablecoin Regulation
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