šØ Things Arenāt Going Well for the Most Important Cryptocurrency Law in the US! āTrump is Being Cited as the Biggest Obstacle!ā šØ
The GENIUS Actāthe bipartisan bill that would finally create a federal framework for stablecoinsāhas hit a brick wall, and the surprise road-block is President Trump himself, according to three Senate staffers who spoke to CryptoNews. Despite earlier White House signals of support, Trump is now privately demanding the bill include a ban on yield-bearing stablecoins and a 100% Treasury-only reserve mandate, provisions that would gut the business model of bank-issued tokens and split the Republican coalition.
šKey points
š¹ What Trump wants
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No interest: stablecoins must be non-yielding to protect money-market funds
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T-bills only: reserves cannot include repo, agency or bank depositsāa direct shot at bank charters that rely on FDIC-insured sweeps
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Pre-emption clause: federal law must override New Yorkās BitLicense and Wyomingās SPDIsāstates-rights GOP members balk
š¹ Why he flipped: Sources say Trumpās new crypto czar David Sacks convinced him that yield-bearing tokens would cannibalise Treasury demand and inflate Fedās RRP balance; Trump now sees āstablecoin = shadow bankingā that could undermine his debt-issuance program.
š¹ Vote math broken
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Republican āyesā count drops from 13 ā 7 if bank reserves are outlawed
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Democratic moderates (4 needed) refuse to back state pre-emption language
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Cloture fails at 51 vs 60 required; Banking Chair Tim Scott delays markup indefinitely
š¹ Industry panic: Circle, Paxos and Centre lobbyists rewrote reserve language twice in December; American Bankers Association now opposes the bill it once co-wrote, fearing Treasury-only mandates make bank stablecoins unprofitable.
š¹ Clock ticking: Congress has six legislative weeks before April recess; after that, 2026 mid-term campaigning begins and comprehensive crypto bills historically die.
šWhy it matters
š¹ Regulatory limbo continues: No GENIUS Act means no federal clarity on reserves, auditing or redemptions; state patchwork (BitLicense, MTL, OCC interpretive letters) remains only game in town, keeping institutional capital on sidelines.
š¹ Market structure freeze: SECās accounting bulletin 121 stays in forceābanks must hold stablecoin liabilities on balance-sheet, killing tokenised deposit products JPMorgan and BofA had queued for 2026.
š¹ Stablecoin supply choke: Analysts estimate 28B in new issuance is on hold pending federal law; shrinking on-chain liquidity could widen USDC/USDT spreads and push DeFi lending rates >15% again.
š¹ Global competitiveness slip: EUās MiCA goes full throttle Jan 2026; UK finalises stablecoin regime Q2 2026; U.S. issuers risk losing 60B market cap to Euro- and Sterling-denominated tokens with passport rights.
šÆConclusion: Trumpās last-minute ideological pivot has turned the most important crypto law in America into a hostage of Treasury orthodoxy; unless the White House softens its yield-ban or Congress removes pre-emption, GENIUS is dead on arrivalāand U.S. stablecoin dominance could evaporate before the mid-terms.
https://en.bitcoinsistemi.com/things-aren-t-going-well-for-the-most-important-cryptocurrency-law-in-the-us-trump-is-being-cited-as/