In July 2025, President Donald #TRUMP signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), the first federal law that establishes a regulatory framework for payment stablecoins in the U.S.

This law requires:

100% backing with liquid assets (dollars, short-term Treasuries, deposits in insured banks, etc.).

Public monthly disclosures of reserve composition.

Prohibition of paying interest directly to stablecoin holders.

Exemption from some traditional banking requirements, but with specific capital, liquidity, and risk management rules.

However, there is a significant friction point: the treatment of yields or rewards in stablecoins.

The GENIUS Act prohibits issuers from paying direct interest, but leaves a "gap" that allows platforms (like exchanges) to offer yields through indirect mechanisms ( #staking , lending, treasury management).

Traditional banks see this as a threat, as it could divert deposits from bank accounts (with low yields) to crypto, affecting their business and financial stability.

This has stalled broader legislation, such as the CLARITY Act (on crypto market structure, SEC/CFTC jurisdiction division).

The White House intervened actively:

Organized meetings (including a key one in early February 2026) with crypto executives (Coinbase, Ripple, associations like Digital Chamber) and banks.$XRP $SOL

Imposed an ultimatum / deadline by the end of February 2026 to reach a compromise on how to treat yields in stablecoins.

If no agreement is reached, it could withdraw support for the CLARITY Act or proceed without consensus, risking the collapse of legislative negotiation.

The goal is to balance crypto innovation with protection for the traditional banking system.

Sources indicate that the TRUMP administration seeks for #bancos and #crypto to "merge" eventually into a unified digital industry. #TrumpProCrypto