Trump Backs Crypto Sector as Senate Stalls Digital Asset Bill Over Stablecoin Yield Dispute

U.S. President Donald Trump wrote on Truth Social that he would not allow the banking sector to undermine America's crypto agenda, urging Wall Street to reach a deal with the crypto industry to advance the Digital Asset Market Structure Act in the Senate, POLITICO reported on March 5. The legislation has stalled over a dispute between banks and crypto firms on whether exchanges should be allowed to pay yields on stablecoins, with banks concerned such products could draw deposits away from traditional accounts and weaken their lending base. Market participants broadly expect Trump's comments will not materially shift the Senate's voting landscape, and Senator Thom Tillis said the president's remarks will not change banks' stance on risk. Some in the crypto camp argue Trump's intervention could pressure banks to compromise, and Senator Cynthia Lummis warned that if banks are too inflexible on stablecoin yields they may face government pressure in other regulatory areas.