Eric Trump Accuses Major US Banks of Lobbying Against Stablecoin Interest

Eric Trump’s Criticism of Big Banks

In a post on X on Wednesday, Eric Trump, son of the U.S. President, denounced large U.S. banks for what he described as efforts to prevent Americans from accessing higher-yield stablecoin products. He specifically named JPMorgan Chase, Bank of America, and Wells Fargo as opposing moves to allow U.S. crypto platforms to pay interest on stablecoin holdings.

Trump asserted that the American Banking Association and other lobbyists are “spending millions” to ban stablecoin yields in the range of 4–5% through the Clarity Act. He said that big banks are “lobbying overtime to block Americans from getting higher yields on their savings — while trying to block any rewards or perks from being given to customers.”

The real estate and crypto entrepreneur claimed that U.S. banks currently pay “rock-bottom” interest rates of approximately 0.01% to 0.05% in annual percentage yield, which he contrasted with what he said is about 3.65% in interest paid to banks by the Federal Reserve. According to Trump, this reflects an effort to protect a “low-rate monopoly,” which he characterized as “anti-retail, anti-consumer, and straight-up anti-American.” Eric Trump is a co-founder of crypto platform World Liberty Financial, issuer of the USD1 stablecoin and WLFI cryptocurrency.

Regulatory Debate Around Stablecoin Yields

Traditional banks have argued that permitting yield on stablecoin holdings could pull trillions of dollars in deposits away from banks and create potential financial instability. Earlier this week, JPMorgan CEO Jamie Dimon called for a “level playing field,” stating that stablecoins offering yield should be subject to the same regulatory standards as traditional bank deposits.

Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, challenged Dimon’s position, describing it as a “deceit” to link stablecoin yields directly to bank-like regulatory treatment. The Clarity Act, which addresses stablecoin-related issues, is facing delays amid these disputes over interest on stablecoin products.

As the legislative process continues, the White House has been facilitating high-level discussions between representatives of traditional finance and crypto firms, seeking to navigate the regulatory and competitive tensions between banks and digital asset platforms.

FAQ

What did Eric Trump accuse big banks of doing regarding stablecoins?
Eric Trump accused major U.S. banks and banking lobbyists of lobbying to block U.S. crypto platforms from offering 4–5% yields on stablecoin holdings and to restrict rewards or perks to customers.

Which banks were specifically mentioned by Eric Trump?
Eric Trump specifically named JPMorgan Chase, Bank of America, and Wells Fargo in his criticism.

What concerns have banks raised about stablecoin yields?
Banks have argued that allowing yields on stablecoins could drain trillions of dollars in deposits from traditional institutions and may create financial instability.

What is the Clarity Act in this context?
The Clarity Act is described as legislation at the center of the dispute over stablecoin yields, with lobbyists reportedly seeking to use it to limit or ban 4–5% stablecoin interest rates; disagreements over these provisions are contributing to delays in its progress.