Even as US President Donald Trump steps up support for a joint US-UK stablecoin framework, a group that was expected to benefit most is pushing back: major American banks. This resistance emerges just as the US Senate rushes to pass the CLARITY Act, a bill Trump directly linked to his ambition of making the US the ‘crypto capital of the world.’
The news broke via a post from @WatcherGuru, an account with 4.46 million followers: ‘US and UK announce joint plan to support cross-border tokenized assets and crypto stablecoins.’ Within hours, the tweet garnered more than 6,000 likes and over 900 retweets, sparking global discussions about what the agreement actually entails.
What the Two Countries Actually Agreed On
The joint statement was released through the Transatlantic Taskforce for Markets of the Future, a task force established in September 2025. In essence, the UK and the US agreed that properly regulated stablecoins could improve cross-border payments, financial market infrastructure, and competition.
The technical details are quite strict. Stablecoins used as payment instruments must be fully backed 1:1 by high-quality liquid reserve assets. Issuers must segregate reserve assets from corporate funds, maintain clear custody arrangements, and provide timely redemptions for token holders. There are even protections promised in worst-case scenarios: if an issuer goes bankrupt or undergoes restructuring, stablecoin holders in both countries are promised priority legal claims on reserve assets ahead of other creditors.
Why Banks Are Alarmed
Here lies the drama. Instead of welcoming the framework, major banking groups are increasingly critical of the bill’s stablecoin language. Their concern is simple yet fundamental: these rules could prompt customers to shift funds from bank accounts to stablecoins. If this happens on a large scale, the liquidity of community and regional banks that rely on customer deposits to extend credit could be eroded.
Banks are demanding that lawmakers tighten the bill’s language and add safeguards before the CLARITY Act moves forward. Meanwhile, the bill itself remains debated on multiple fronts - from market structure and stablecoin oversight to ethics rules for elected officials.
Two Conflicting Signals
What makes this moment worth watching is the simultaneous tug-of-war between two powerful forces. On one hand, two of the Western world’s largest economies have agreed to grant stablecoins a clear legal pathway - something the crypto industry has coveted for years. On the other hand, the traditional banking sector, backed by formidable lobbying power, is trying to tap the brakes. While the US-UK agreement does not directly resolve banking concerns, it highlights full reserves and legal clarity as guarantees. For anyone holding or using stablecoins, the compromise reached between these two camps will determine the rules of the game over the coming months.
Source: crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
