🚨 Things Aren’t Going Well for the Most Important Cryptocurrency Law in the US! “Trump is Being Cited as the Biggest Obstacle!” 🚨
The GENIUS Act—the bipartisan bill that would finally create a federal framework for stablecoins—has 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.
🔑Key points
🔹 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 deposits—a direct shot at bank charters that rely on FDIC-insured sweeps
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Pre-emption clause: federal law must override New York’s BitLicense and Wyoming’s SPDIs—states-rights GOP members balk
🔹 Why he flipped: Sources say Trump’s new crypto czar David Sacks convinced him that yield-bearing tokens would cannibalise Treasury demand and inflate Fed’s RRP balance; Trump now sees “stablecoin = shadow banking” that could undermine his debt-issuance program.
🔹 Vote math broken
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Republican “yes” count drops from 13 → 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
🔹 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.
🔹 Clock ticking: Congress has six legislative weeks before April recess; after that, 2026 mid-term campaigning begins and comprehensive crypto bills historically die.
🔎Why it matters
🔹 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.
🔹 Market structure freeze: SEC’s accounting bulletin 121 stays in force—banks must hold stablecoin liabilities on balance-sheet, killing tokenised deposit products JPMorgan and BofA had queued for 2026.
🔹 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.
🔹 Global competitiveness slip: EU’s 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.
🎯Conclusion: Trump’s 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 arrival—and 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/