There’s been a long and winding saga of whether the Clarity Act legislation currently in progress will prevent interest or rewards on stablecoins, with several twists in the past couple of days. While it was leaning towards favoring banks, it has now changed direction. President Trump weighed in on a social media post, saying “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.”
That was followed by his White House digital asset advisor Patrick Witt pushing back on statements by Jamie Dimon. The JP Morgan CEO had said if stablecoins pay interest they should be regulated like banks. Witt asserted that banks are regulated strictly because of lending and re-hypothecation. This left the impression that perhaps Dimon’s comments had stirred the pot.
But it turns out Dimon’s input was probably incidental. What happened is Coinbase CEO Brian Armstrong had a meeting with President Trump shortly before the President’s social media post, as reported by Politico. Trump’s comments included wording frequently used by Armstrong that “Americans should earn more money on their money”. Politico also highlighted Coinbase’s role in the political action committee (PAC) Fairshake which has a war chest of $190 million ready for the midterm elections.
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