Trump backs UK stablecoin pact as CLARITY Act faces bank revolt

President Donald Trump has strengthened support for a new UK-US stablecoin framework as the Senate races to advance the CLARITY Act despite growing opposition from banking groups over its stablecoin provisions.

According to a joint statement released through the Transatlantic Taskforce for Markets of the Future, the United Kingdom and the United States have agreed that properly regulated stablecoins can improve cross-border payments, financial market infrastructure, and competition while providing businesses with more consistent regulatory treatment across both jurisdictions.

UK and US have aligned on core stablecoin standards

Created in September 2025, the Transatlantic Taskforce for Markets of the Future said both governments consider stablecoins “an important vehicle for innovation in digital money.”

The statement said the two countries intend to support their use in cross-border payments, settlement, and capital market transactions while coordinating their domestic regulatory frameworks to reduce unnecessary differences between the two markets.

The joint position also sets out common expectations for stablecoins intended for use as money. According to the statement, regulated stablecoins should be backed one-to-one with clearly defined, high-quality liquid reserve assets under each country’s legal framework.

Reserve and liquidity rules, the statement added, should reduce financial risks without creating unnecessary barriers for new entrants or limiting cross-border competition. It also calls for regulated issuers to maintain clear custody arrangements, separate reserve assets from company funds, and provide timely redemption for token holders.

During insolvency or restructuring proceedings, the UK and US governments said stablecoin holders should have legally protected claims over reserve assets ahead of other creditors, subject to each country’s domestic insolvency laws. The statement further said issuers should clearly disclose customer rights so holders understand how their assets are protected.

Senate faces pressure as banks challenge CLARITY Act

The transatlantic agreement arrives as Trump continues urging the Senate to approve the CLARITY Act before lawmakers begin their August recess. The president has repeatedly linked crypto legislation to his goal of making the United States the “crypto capital of the world.”

The bill remains one of the most closely watched crypto measures in Washington, with senators still negotiating provisions covering market structure, stablecoin oversight and ethics rules affecting elected officials. The compressed legislative timetable has increased pressure on lawmakers to finalize the text before Congress leaves for its summer break.

At the same time, major banking organizations have intensified criticism of the legislation’s stablecoin language. Banking groups have argued that several provisions remain too unclear and could encourage consumers and businesses to move money from traditional bank accounts into stablecoins.

Those organizations have warned that sustained deposit outflows could place additional pressure on community and regional banks that depend heavily on customer deposits for lending. They have called on lawmakers to tighten the bill’s wording and introduce stronger safeguards before the legislation moves forward.

The joint UK-US position does not address those banking concerns directly, but it places significant emphasis on fully backed reserves, customer protections and clear legal treatment of stablecoin assets. As both governments continue developing their domestic rulebooks, the coordinated framework signals a common regulatory direction even as debate over the final shape of the CLARITY Act continues in Washington.