Banks’ refusal to support a White House compromise has stalled crypto legislation talks, casting doubt on its passage this year. President Donald Trump has accused lenders of undermining the bill.

During his second term, Trump pursued crypto reform, despite his campaign trail reliance on crypto cash and family benefit from its token. He criticized the financial industry on Truth Social Tuesday night. “We are not going to allow them to undermine our powerful Crypto Agenda,” he said.

Leaders of crypto startups claim a regulatory murky area has hampered their growth. Supporters think the Clarity Act bill will clarify restrictions to boost cryptocurrency use.
The law was halted in January due to banks’ opposition to allowing stablecoin producers and crypto businesses to give rewards that could compete with bank deposits and hinder lending.

Crypto companies like Coinbase (COIN.O) argue that offering rewards for user acquisition is necessary and would be anticompetitive. Standard Chartered predicts stablecoins could withdraw $500 billion in deposits from U.S. institutions by 2028.