Eric Trump, one of the sons of US President Donald Trump and a co-founder of the crypto company World Liberty Financial, went after the banking industry on Tuesday over their opposition to allowing stablecoin dividends in the legislation on the structure of the crypto market.
“Big Banks (think JPMorgan Chase, Bank of America, Wells Fargo, etc.) are lobbying overtime to block Americans from getting higher returns on their savings — while trying to block any rewards or perks from being given to customers,” he said in a post on X, the site formerly known as Twitter.
He said the banks pay a marginal interest rate compared to the interest paid to them by the Federal Reserve and keep the funds as profits.
“Today banks are desperately targeting crypto/stablecoins where platforms plan to offer 4-5%+ dividends or rewards,” he said.
“The ABA and other lobbyists are spending millions trying to ban or limit these dividends via bills like the Clarity Act, shouting ‘fairness’ and using words like ‘stability’ – when really it’s about protecting their low-interest rate monopoly and preventing deposit flight. This is anti-retail, anti-consumer, and downright anti-American,” he said.
World Liberty, the company he co-founded, is issuing its own stablecoin, USD1. The World Liberty umbrella is also in the process of seeking a charter through the Office of the Comptroller of the Currency.
Trump has shared his grievances with banks over the past year, saying at several conferences that they rejected him and his family.
His father, the US president, wrote about the Clarity Act on Tuesday, urging Congress to advance the bill and similarly attacking banks for being recalcitrant in negotiating the stablecoin dividend in the bill. It is so far unclear whether his post, or indeed Eric Trump’s, will move the needle significantly in the negotiations.
Donald Trump wrote shortly after meeting with Coinbase CEO Brian Armstrong, who publicly withdrew support from the bill in January over the stablecoin provisions and other sections the crypto boss deemed problematic.
Patrick Witt, the White House’s executive director of crypto issuance, also pushed back at JP Morgan CEO Jamie Dimon earlier Wednesday after Dimon said stablecoin issuers should be regulated like banks.
