Trump Backs Crypto Industry, but Struggles to Shake Wall Street's Ground: Stablecoin Yield Battle Emerging as Key Hurdle to US Legislation

BlockBeats News, March 5th. According to POLITICO, U.S. President Donald Trump recently posted on the social platform Truth Social, stating that he will not allow the banking industry to "undermine America's strong crypto agenda." He urged Wall Street to reach an agreement with the crypto industry to advance the stalled Digital Asset Market Structure Bill in the Senate.

The bill is currently stuck on a key disagreement between the banking industry and the crypto industry: whether crypto exchanges can offer yield to stablecoin holders. Banking institutions are concerned that this move could lead depositors to shift funds from bank accounts to stablecoin products, thereby weakening the bank deposit base and impacting credit supply.

Despite Trump's public support for the crypto industry, it is widely believed within the industry that this stance is unlikely to change the Senate's voting dynamics. Senator Thom Tillis, a member of the Senate Banking Committee, stated that the President's voice will not alter the banking industry's position on risk issues.

The crypto community, however, believes that Trump's intervention may compel banks to make concessions in negotiations. Senator Cynthia Lummis pointed out that if banks take a too firm stance on stablecoin yield issues, they may face government pressure on other regulatory issues.

Currently, U.S. government officials have intervened to coordinate negotiations between the banking industry and crypto companies, but the two sides have yet to reach a consensus on the stablecoin yield mechanism. This has become a key obstacle to advancing digital asset legislation.