Trump Slams Banks for Threatening GENIUS Act

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Trump accused banks of trying to weaken stablecoin rules, while figures like JPMorgan CEO Jamie Dimon argue that yield-bearing stablecoins should face bank level regulation. With analysts saying banks may ultimately lose the political battle, the outcome could shape the future of onchain dollars in the US.

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In Today's Email:

• What Matters: Trump Slams Banks for Threatening GENIUS Act 👀 

• Case Study: Visa & Stripe’s 100+ Countries Stablecoin Card Payments 🌐 

• Governance & Features: Aave Delegate ACI to Exit DAO in July 👻 

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WHAT MATTERS

Trump Slams Banks for Threatening GENIUS Act

State of play: President Donald Trump accused US banks of trying to weaken the GENIUS Act, a stablecoin framework law, as broader crypto market structure legislation remains stalled in Congress.

• He said Americans should be able to earn higher yields on their money and warned that banks are undermining the country’s crypto agenda.

• The dispute centers on yield-bearing stablecoins.

• Banks argue they could pull deposits away from traditional institutions and are pushing for stricter rules similar to banking regulations.

• The CLARITY Act, which would define SEC and CFTC oversight of digital assets, passed the House in 2025 but is now stalled in the Senate.

• Trump urged Congress to move quickly, warning that regulatory delays could push crypto innovation to other countries.

Meanwhile, JPMorgan CEO Jamie Dimon says that stablecoin platforms offering interest-like rewards should face the same rules as banks, including capital, liquidity, and reporting requirements.

• TD Cowen says banks will likely lose the stablecoin yield fight, but the dispute could still delay the CLARITY Act and broader US crypto regulation.

Why it matters: This fight shows how much stablecoins are starting to challenge the traditional banking model. Yield-bearing stablecoins could give users better returns than bank deposits, which explains why banks are pushing for tighter restrictions.

Our take: Banks have dominated dollar savings for decades while paying minimal interest to users. Stablecoins change that dynamic by allowing people to earn yield directly onchain. It is not surprising that the industry is pushing back.

For builders and investors: If clear rules like the CLARITY Act pass, the US could unlock a wave of stablecoin innovation.

CASE STUDY

Visa & Stripe’s 100+ Countries Stablecoin Card Payments

Visa and Stripe owned stablecoin firm Bridge plan to expand their stablecoin linked card issuance product to more than 100 countries.

• The cards allow users to spend stablecoins directly from wallets such as MetaMask and Phantom while using Visa’s network of 175M merchants.

• The product was launched in 2025 with a focus on Central and South America.

• The product is currently live in 18 countries and is set to expand across Europe, Asia Pacific, Africa, and the Middle East.

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INSIGHTS

Vitalik Calls for Devs to Build “Sanctuary Technologies”

State of play: Ethereum co founder Vitalik Buterin urged developers to focus on building “sanctuary technologies” that protect privacy, autonomy, and open collaboration rather than trying to emulate large tech companies like Apple or Google.

• He said Ethereum cannot solve all global problems but can create open digital spaces where people interact, coordinate, and build wealth without relying on centralized platforms.

• Buterin argued that Ethereum should help develop free and open source tools that allow people to communicate, manage risk, and organize communities while remaining resilient to government or corporate pressure.

• He added that such systems could reduce the risk of any single actor gaining total control over digital life, echoing ideas from early cypherpunk movements that emphasized privacy and decentralization.

FEATURES & GOVERNANCE UPDATE

Aave Delegate ACI to Exit DAO in July

The Aave Chan Initiative (ACI), a major Aave DAO delegate founded by Marc Zeller, will leave the DAO by July and wind down operations over four months.

• The decision follows the earlier exit of core contributor BGD Labs and comes amid rising governance tensions within the Aave ecosystem.

• The dispute began after fees from a CoW Swap integration were routed to Aave Labs instead of the DAO treasury without a governance vote.

• The issue later expanded into broader debates over transparency, funding, and control within the protocol.

• Zeller argued that Aave Labs’ voting power allowed proposals to pass despite community opposition.

Other notable feature updates:

• Perpl is launching mainnet.

• Reflect Money launches Reflect Whitelabel.

• Arbitrum DAO proposes a constitutional amendment.

• Lido expands institutional access to Ethereum staking rewards.

• Ether.fi partnered with FalconX, M11 Credit, Cap, and Symbiotic.

QUICK BITES

• Spot BTC ETFs post $458M in net inflows.

• CFTC signals rulemaking push on prediction markets.

• YZi Labs invests $100M into Hash Global's BNB fund.

• TD Cowen says banks likely to lose stablecoin yield fight.

• Trump says GENIUS stablecoin law 'threatened' by banks.

• ACI to leave Aave in July amid growing governance tensions.

• Jamie Dimon says stablecoin yields should face bank-style rules.

• Indiana to enact bill allowing crypto investments in retirement plans.

• Vitalik says dev should build 'sanctuary tech,' forget emulating big tech.

• Visa & Stripe plan global expansion of stablecoin card issuance product.

NOTEWORTHY READS & MEME

• Stacy Muur’s read on Crypto Scams.

• Nic Carter’s read on Prediction Markets Are Not Good Markets (Yet).

• The Kobeissi Letter’s read on Trump's CONFLICT Playbook: Investor's Guide.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.