Key Insights:
- The latest Trump news shows that he wants the regulators to hasten the CLARITY Act, citing a threat from banks.
- Kraken gains a Federal Reserve Master account, officially becoming a core payment infrastructure.
The CLARITY Act is back in the headlines courtesy of the latest Trump News. POTUS has been the key driver of market headlines, especially with the ongoing situation between Iran and the US.
The latest Trump news is shifting attention back to crypto regulations, such as the CLARITY Act and GENUS Act, in a surprising turn of events. In a recent Truth Social post, POTUS expressed urgency in pushing the crypto bill forward.
President Trump also accused banks of holding back the GENIUS Act and CLARITY Act. He noted that the extended delay could give rivals, such as China, a leg up, allowing them to win the crypto race.
Trump News: POTUS Calls Out Banks For Blocking Crypto Regulatory Progress
President Trump acknowledged what the market has known all along. That banks have been playing rough by blocking regulatory progress.
The crypto regulatory process involving the GENIUS and CLARITY acts was supposed to run smoothly. Many proponents, including President Trump, expected the two regulatory frameworks to be passed into law before the end of 2025.
The regulatory approval process stalled due to an impasse over stablecoin yields. The official narrative was that banks believed stablecoin yields would render banks less attractive.
As per the latest Trump news, the POTUS expressed urgency in the CLARITY Act’s progress. He believes that the US has a narrow window to become the world’s crypto leader.
Meanwhile, JPMorgan CEO Jamie Dimon explained the bank’s perspective in a recent CNBC interview. He believes that crypto platforms that offer stablecoin rewards should be regulated under banking laws.
Mr. Dimon believes that crypto platforms pursuing stablecoin rewards should do so under banking regulation. Interestingly, Ripple happens to be pursuing a banking charter, and it recently received a conditional green light from the Office of the Comptroller of the Currency (OCC). World Liberty Financial (WLFI) also submitted its banking charter application to the regulator.
While crypto firms might be giving banks a run for their money, it is also possible that banks may also be incentivized to engage in stablecoin yield mining.
Kraken Scores Big Win Ahead of Its IPO
The Kraken crypto exchange announced plans to go public in November last year through an SEC filing. While that is still in the pipeline, the crypto exchange just scored a home run with another major US financial watchdog.
The Federal Reserve has reportedly granted Kraken a Master Account. This means the exchange now “has direct access to the core payments system in the US.
The approval essentially means Kraken is now one of the biggest crypto on-ramps in the US. The Master account privilege has historically been reserved for depository institutions such as banks and credit unions. This means Kraken can now use the FED’s financial rails to move large amounts without involving intermediaries.
The development also highlights one of the latest examples of crypto firms becoming deeply entrenched in the traditional financial markets. Kraken’s efforts over the last few months hint at major long-term moves.
It will be interesting to see how things unfold and how Kraken will position itself in the market over the next few months and years. Meanwhile, the CLARITY Act made it into the Trump news this week, hinting that the gears of crypto regulation may start turning soon.
Despite the renewed regulatory optimism, it remained unclear whether progress would be made anytime soon.