Trump Urges Congress to Pass Clarity Act, Warns Banks Against Undermining Stablecoin Law

President Donald Trump on March 3 called on Congress to advance the Digital Asset Market Clarity Act and related market structure legislation, warning banks not to undermine the Guiding and Establishing National Innovation for U.S. Stablecoins Act (Genius Act), according to his Truth Social post. The Genius Act, enacted on July 18, 2025, established the first national framework for U.S. dollar-pegged payment stablecoins, requiring issuers to hold high-quality liquid reserves such as cash or short-term Treasuries, undergo monthly audits, and secure federal or state licenses. The Clarity Act, designed to delineate whether digital assets fall under the Securities and Exchange Commission or the Commodity Futures Trading Commission, passed the House in July but stalled in the Senate in early 2026 amid industry disputes, banking sector lobbying, and inter-committee jurisdictional conflicts. Coinbase CEO Brian Armstrong withdrew support for the Senate draft on January 14, citing concerns that its provisions could hinder tokenized equities trading on blockchain platforms, restrict decentralized finance data access, and potentially broaden SEC authority rather than reinforce the CFTC's role.