Trump accuses banks of weakening, undermining digital asset regulations

US President Donald Trump has accused banks of attempting to undermine regulations governing digital assets, warning that his administration would not allow financial institutions to weaken legislation regulating the stablecoin market.

In a Tuesday post on his Truth Social platform, Trump said the Genius Act, which he signed last year to establish a regulatory framework for stablecoins, is not getting the deference it deserves from banks.

"The Genius Act is being threatened and undermined by the Banks, and that is unacceptable — We are not going to allow it," he said.

Trump stressed that a broader market structure framework for digital assets must be finalized as soon as possible, arguing that Americans should be able to generate greater returns from their money.

"The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don't get The Clarity Act taken care of," he said.

He also warned that without regulatory clarity, the digital asset sector could shift to countries such as China and others. Trump also emphasized the need to pass the Clarity Act, which aims to provide legal certainty for digital assets.

Describing the Genius Act as the first major step toward making the United States the "crypto capital of the world," Trump said passage of the Clarity Act would complete the process and help ensure the rapidly growing sector remains in the country.

"The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage. They need to make a good deal with the Crypto Industry because that's what's in best interest of the American People," Trump stressed.

Trump added that the industry cannot be taken away from the American people when it is so close to becoming truly successful.

Once a fierce critic of cryptocurrency, after May 2024 presidential candidate Trump became an enthusiastic backer, followed by his family also becoming heavily involved in the business.

His involvement has drawn criticism. "Congress needs to grow a spine and put a stop to Trump's crypto corruption," Democratic Senator Elizabeth Warren said last month, alleging a connection between a Trump crypto deal and an agreement to sell powerful AI-capable computer chips abroad.

In a statement, White House Counsel David Warrington hit back, saying: "President Trump performs his constitutional duties in an ethically sound manner and to suggest so otherwise is either ill-informed or malicious."