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Eric Trump calls banks opposing stablecoin yields ‘anti-American’

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Eric Trump calls banks opposing stablecoin yields ‘anti-American’

Eric Trump has accused major U.S. banks of lobbying aggressively against crypto platforms offering higher yields to consumers, escalating tensions between the traditional financial sector and the digital asset industry.

Summary

  • Eric Trump accused major U.S. banks of lobbying against crypto and stablecoin yield products.
  • The comments come as debate intensifies around the CLARITY Act and GENIUS Act.
  • Donald Trump also criticized banks, arguing legislation is needed to keep the U.S. competitive in the crypto sector.

Eric Trump accuses big banks of lobbying against crypto yields

In a post on X, Eric Trump claimed that institutions such as JPMorgan Chase, Bank of America, and Wells Fargo are attempting to block Americans from earning higher returns through crypto-based savings products.

“Big banks are lobbying overtime to block Americans from getting higher yields on their savings,” Trump wrote, arguing that traditional lenders offer extremely low annual percentage yields, often between 0.01% and 0.05%, despite benefiting from higher interest rates paid by the Federal Reserve.

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According to Trump, the banking sector is particularly concerned about crypto and stablecoin platforms that are planning to offer yields or rewards in the 4% to 5% range. He alleged that banking lobby groups are spending heavily to restrict those products through legislation and regulatory pressure.

The comments come as lawmakers debate new digital asset legislation in Washington, including the CLARITY Act, which aims to define the regulatory framework for cryptocurrencies, and the GENIUS Act.

Trump argued that banks are invoking concerns about “fairness” and financial stability while attempting to protect profit margins built on the gap between the interest they receive and the rates paid to depositors.

The criticism echoes remarks made by Donald Trump, who recently said large banks are attempting to undermine crypto legislation that could strengthen the United States’ position in the global digital asset industry.

In a statement posted on Truth Social, the president said Congress must move quickly on market structure legislation to prevent the crypto industry from shifting to other countries.

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The debate highlights growing friction between the banking industry and crypto firms as policymakers weigh how to regulate digital assets while maintaining the competitiveness of the U.S. financial system.

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Crypto World

Morgan Stanley Sets Bitcoin ETF Fee at Ultra-Low 0.14%

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Morgan Stanley Sets Bitcoin ETF Fee at Ultra-Low 0.14%

Investment bank Morgan Stanley is seeking to launch its spot Bitcoin exchange-traded fund at a 0.14% fee, which would make it the cheapest in the US market and potentially force rivals to cut fees to stay competitive.

The 0.14% fee, proposed in Morgan Stanley’s latest S-1 registration statement on Friday, would be one basis point below the Grayscale Bitcoin Mini Trust ETF (BTC), currently the cheapest in the US market, and 11 basis points below the BlackRock-issued iShares Bitcoin Trust ETF (IBIT).

“Big move here. They are not messing around,” Bloomberg ETF analyst James Seyffart said, predicting that the Morgan Stanley Bitcoin Trust (MSBT) is “likely to launch in early April.”

Source: James Seyffart

Fellow Bloomberg ETF analyst Eric Balchunas said the low fee means that none of Morgan Stanley’s roughly 16,000 financial advisors — which manage $6.2 trillion in client assets — would feel conflicted in recommending the product to its clients.

Given that spot Bitcoin ETFs track the price movements of Bitcoin (BTC), Morgan Stanley’s ultra-low fee could spark a fresh fee war in the $83 billion market, putting immediate pressure on rivals to cut costs or risk losing assets.

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Regulatory approval would make Morgan Stanley the first bank to issue a spot Bitcoin ETF, expanding access to Bitcoin exposure for millions of its high-net-worth clients.

“They are the ultimate gatekeepers of rich boomer money,” Balchunas added.

Morgan Stanley previously selected Coinbase and Bank of New York Mellon as the proposed custodians for its Bitcoin ETF.

Morgan Stanley seeking suite of crypto ETFs, banking charter

Morgan Stanley, previously one of the more crypto-hesitant Wall Street firms, filed for the spot Bitcoin ETF in the first week of January, along with a Solana (SOL) ETF.

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Related: Bitcoin traders see 53% odds of sub-$66K BTC by April 24 

It then filed papers for a staked Ether (ETH) ETF later that week, and by the end of the month, the bank appointed one of Morgan Stanley’s longest-standing executives, Amy Oldenburg, to lead its digital asset team.

Source: James Seyffart

Morgan Stanley also applied for a national trust banking charter on Feb. 18, seeking to custody certain digital assets and execute purchases, sales and swaps for clients in addition to staking services.

In October, before the investment bank adopted its institutional crypto strategy, it recommended a 2% to 4% allocation to crypto portfolios for investors. It also allowed its financial advisors to recommend crypto funds to clients with individual retirement accounts (IRAs) and 401(k)s.

Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins

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