Stablecoins face yield fight as Trump presses Congress

Trump’s ASAP push seeks to break stablecoin yield stalemate in Congress

President Donald Trump urged Congress to pass a crypto market structure bill “ASAP” and accused large banks of stalling progress, saying the stablecoin law he signed last year is being undermined, as reported by The Hill. His intervention centers on the rules for how stablecoins and trading platforms interact with the banking system and what forms of returns to consumers are permissible.

The central sticking point is whether crypto firms should be allowed to offer “stablecoin yield,” a feature that has divided stakeholders and slowed negotiations. Trump’s call is aimed at unblocking those talks and setting a path for implementation that clarifies the roles of banks, exchanges, and regulators.

What the crypto market structure bill would change

The pending market structure legislation is designed to set clearer lines for oversight of digital asset markets, establish consumer-protection baselines, and define how banks can serve crypto firms without running afoul of prudential and AML expectations. In practice, one of the most contested design choices is how the bill treats stablecoin yield, what it is, who can offer it, and under what safeguards.

Trump has taken a side in that debate, which is one of the issues holding up passage of the broader package, according to The Block. The distinction is important: a stablecoin framework was signed into law last year, while the expansive market structure provisions, especially those touching yield, remain pending.

Several lawmakers have signaled they want stronger guardrails on anti-money laundering, national security, and consumer protection before endorsing final text, according to CBS News. That pressure reflects a broader push to ensure yield-like features don’t outpace disclosures, custody standards, or supervisory visibility that consumers and counterparties would reasonably expect.

Separately, the Federal Deposit Insurance Corporation is reexamining earlier guidance that discouraged banks from servicing crypto firms, a shift highlighted by Acting Chair Travis Hill and reported by CoinDesk. Any updated approach could determine how readily insured institutions participate in stablecoin custody, payments, and any permissible yield-related activities under the eventual statute.

At the time of this writing, the figures indicate Bitcoin (BTC) trading near 67,621 with a neutral RSI (around 46) and medium volatility (~4.5%), while trend measures such as the 50- and 200-day simple moving averages are higher than spot. Sentiment readings described as “bearish” and a recent tally of 12 green days in 30 suggest choppy conditions as policy headlines continue to shape liquidity and risk appetite.

Bank lobbying and industry views: Coinbase, FDIC, stablecoin yield

Industry advisers close to the administration have argued that once a market structure bill crosses the finish line, banks and crypto firms will converge under clearer rules, and that a pragmatic compromise on stablecoin yield could unlock the stalemate, according to CryptoBriefing. That view holds that prohibiting yield outright would entrench bank advantages, while a compliant pathway could broaden access without sacrificing supervision.

Ahead of the latest drafts, Coinbase’s leadership has warned against curbing yield in ways that nullify core innovation. After weeks of back-and-forth, Brian Armstrong, CEO of Coinbase, said, “Some versions that curb stablecoin yield look like a giveaway to the banks,” adding that he would “prefer no bill” over one that “strips out entire categories of digital asset innovation.”

On the banking oversight front, some Republicans have criticized prior regulatory pressure that led banks to distance themselves from crypto companies, with Sen. Tim Scott calling such debanking “disgusting and disheartening,” as covered by CNBC. The FDIC’s ongoing review, together with congressional negotiations over yield and consumer safeguards, will likely determine how far insured institutions go in offering custody, payments, and any yield-adjacent services once the bill is finalized.