President Donald Trump has been making one thing clear in recent weeks. He wants Americans to earn more on their savings.
The White House has been signaling that the current financial system isn't doing enough for everyday savers. That's why new initiatives, like the Trump Accounts program for children and retirement plans for non-401(k) workers, are the call of the hour.
Now, attention is turning to a key piece of legislation called the CLARITY Act that could reshape how Americans earn yield on their money.
And the debate around it is getting heated.
Related: Americans cut retirement savings as recession fears rise
The next regulation on the table
At its core, the CLARITY Act is a crypto market structure bill. But beyond the regulatory jargon, it could have real implications for how Americans grow their savings.
The bill aims to clearly define when a digital token is considered a commodity versus a security. It is a distinction that determines whether it falls under the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). It also proposes clearer registration pathways for crypto exchanges and platforms, reducing long-standing regulatory confusion .
Most importantly, it matters for savings.
One of the important clauses in the bill is stablecoins , or cryptocurrencies backed 1:1 by assets like the U.S. dollar. These reserves generate interest. If issuers pass some of that yield on to users, Americans could potentially earn returns closer to Treasury yields instead of the lower rates offered by many traditional savings accounts.
Stablecoins operate 24/7, settle instantly and can be integrated directly into digital wallets. For underbanked Americans, they may offer access to yield without high minimum balances.
They also carry risks. They are not FDIC insured, and users face counterparty and regulatory uncertainty.
But many in the traditional banking sector see it more as a competition for banks.
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Stablecoin rewards launches debate
Banks are pushing back against the stablecoin clause. In January, Bank of America warned that the growing adoption of stablecoins could quietly siphon $6 trillion in bank deposits out of the banking system.
The latest push back came from JPMorgan Chase CEO Jamie Dimon. The sticking point is whether stablecoin issuers should even be allowed to pay interest-like rewards on customer balances.
In an interview with CNBC , Dimon argued that if a company is holding customer balances and paying interest, it should be regulated like a bank. He drew a line between transaction-based rewards and interest paid on stored balances.
"Rewards are the same as interest,"Dimon said. "If you are going to be holding balances and paying interest, that's the bank. You should be regulated by a bank."
Banks say they are open to crypto platforms offering transaction incentives. But if those platforms begin functioning like deposit-taking institutions, they argue, they should follow the same capital, liquidity, anti-money laundering and insurance standards.
On the other side, Coinbase CEO Brian Armstrong has warned that certain draft language could give too much authority to the SEC and restrict stablecoin rewards. He has argued that innovation should not be boxed in by legacy banking frameworks.
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Trump takes a clear side in the debate
Trump has made his position unmistakable.
In a March 3 post on Truth Social, he accused banks of trying to undermine both the GENIUS Act and the CLARITY Act, calling such efforts "unacceptable."
"The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money. The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don't get The Clarity Act taken care of."
For Trump, this is about positioning the United States as the "Crypto Capital of the World," and ensuring innovation stays domestic.
"The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage. They need to make a good deal with the Crypto Industry because that's what's in best interest of the American People."
So far, the CLARITY Act failed to reach a consensus by its March 1 deadline. The Senate Banking Committee is gunning for a mid-to-late March markup, with breakout negotiations aimed for April.
Related: Will the crypto industry need to self-regulate under Trump?
This story was originally published by TheStreet on Mar 4, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
