President Donald Trump called for the U.S. to have "the lowest interest rate in the world", speaking on September 13 from the Irish Open in Doonbeg. His comments came two days before the Federal Reserve's policy meeting begins on September 15. The federal funds rate is currently set in a target range of 3.50% to 3.75%. Trump has urged the Fed to move rates to 1% or lower, a cut of more than 250 basis points from current levels. Trump argues that higher rates leave the U.S. at a competitive disadvantage versus other countries, raise the cost of servicing a national debt now above $39 trillion, and weigh on economic growth. Markets, though, are focused on sticky inflation risks. Oil prices have risen and recent job data has remained strong, reinforcing expectations among some participants that Fed Chair Kevin Warsh, appointed by Trump earlier in 2026, could choose to raise rates rather than cut them. Trump also escalated his message online, posting: "LOWER THE RATE OR I'LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT." White House economic adviser Kevin Hassett struck a more cautious note, indicating Trump could accept a rate increase if conditions justified it. The September 15–16 Fed meeting is drawing heightened attention as investors weigh sharply different outcomes. A hold or a cut could support equities by lowering borrowing costs and improving risk appetite, with growth stocks and rate-sensitive groups such as technology and real estate likely to benefit most. A hike would tighten financial conditions, lifting costs from mortgages to corporate credit lines. Higher discount rates typically pressure valuations, especially for companies priced on expectations of future earnings. The current 3.50% to 3.75% range already reflects earlier cuts by prior Fed leadership aimed at cushioning the economy during periods of uncertainty. A shift toward hikes would signal the Fed views inflation as a bigger threat than slowing growth.

According to Wu Blockchain, Patrick J. Witt, executive director of the White House Digital Asset Advisory Council, and U.S. Treasury Secretary Scott Bessent are urging Democrats and Republicans to support the CLARITY Act's key Senate procedural vote scheduled for September 15. They warned that a failed vote could materially undermine the United States' current position as a global leader in blockchain and digital assets.

Senator Dave McCormick said the Senate should hold a vote Tuesday to advance the CLARITY Act, calling for its passage.

Senate Democrats are set to meet tonight to discuss the CLARITY Act as the party gears up for a pivotal procedural vote scheduled for Tuesday.

Senate Minority Leader Chuck Schumer gathered Senate Democrats on Sunday, September 13, to settle the party's negotiating stance on the Digital Asset Market Clarity Act, widely known as the CLARITY Act, ahead of a pivotal procedural vote set for September 15. Democrats are pressing for additional changes before committing support, with talks centering on ethics rules aimed at preventing government officials from profiting from crypto businesses while shaping policy. Party leaders have cited reports that former President Donald Trump's crypto-related income topped $1.4 billion in 2025 as a key example of why stricter guardrails are needed. A revised draft circulated on September 10 incorporated more than 100 modifications sought by Democrats over months of negotiations. Remaining disputes largely fall into two areas: tighter ethics language covering both current and former officials, and the treatment of stablecoin yield products. The stablecoin debate has drawn in community banks, with concerns that the bill's framework could leave smaller institutions at a disadvantage if they try to offer yield-bearing stablecoin products. Roughly a dozen Democratic senators have been directly involved in the negotiations. Schumer's weekend caucus was designed to align the broader conference on a unified position before the chamber is forced to take a public step Monday. Trump met with advisers on September 12 to discuss the proposed ethics provisions, signaling that his team views the language as potentially affecting his financial interests and raising the stakes around the final wording. The September 15 vote is procedural rather than a vote on final passage. It will determine whether the Senate moves forward toward a final vote on the CLARITY Act. With the chamber closely divided, a small number of Democratic votes could decide whether the bill advances, stalls, or returns for further revisions. Market participants are watching the stablecoin section closely. If the final text limits community banks' ability to offer stablecoin yield products, activity could shift toward larger institutions, potentially concentrating the market and dampening competition and innovation in a fast-growing segment.

A coalition of 77 state banking associations is pressing lawmakers to revise the CLARITY Act, calling for a ban on "balance-based" rewards tied to stablecoins, according to coverage of a letter sent by the groups. The request is narrowly framed. The associations are not urging a blanket prohibition on all stablecoin incentives. Instead, they are targeting rewards that scale with the size of a user's stablecoin holdings—a structure that can resemble interest paid on deposits. That likeness to deposit-like yield is central to why banking groups are focused on this provision. Public reporting does not include proposed statutory language or a clear legal definition that would determine which programs qualify as balance-based rewards. As a result, the potential scope of any ban—including which issuers, products, or distribution platforms might be affected—remains undefined based on the information available. The effort is currently an industry request, not an enacted policy. There is no indication that such a prohibition has been incorporated into the CLARITY Act, scheduled for a vote, or accompanied by amendment text, a legislative timeline, or an effective date. The CLARITY Act remains in flux as lawmakers debate multiple revisions. Senate Republicans have already updated the bill to address DeFi and prediction markets, and Democrats have advanced a separate vertical-integration proposal. A balance-based rewards ban would add another contested provision to a draft that continues to be reshaped. The broader stakes reflect an ongoing tug-of-war between banks and crypto firms: if stablecoin holders can earn yield simply by holding, it can compete with traditional bank deposits. That competitive pressure helps explain sustained banking-industry engagement on stablecoin policy, including developments such as Block's pursuit of a national trust bank charter to support stablecoin custody. Whether lawmakers adopt the associations' request remains unresolved. As of now, the 77 groups have made their case, and there is no public response from the CLARITY Act's authors. Additional source references: source document 1. Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.

Odaily Planet Daily reported that Senate Majority Leader Chuck Schumer has called the Senate Democratic caucus to meet Sunday evening to review newly leaked language of the CLARITY bill. The draft, circulated Thursday by Republican senators, contains more than 100 amendments said to have been proposed by Democrats. The Senate is set to vote Tuesday on whether to move forward with a cloture motion on the legislation or drop it altogether. Democrats remain divided over the bill's ethics provisions, while community banks are pushing back against rules governing stablecoin yields. Most Democratic senators are expected to oppose the measure. On Friday, U.S. President Donald Trump discussed revised ethics language with advisors as Democrats press for a requirement that public officials sell any existing cryptocurrency holdings. To advance to debate Tuesday, the bill would need support from at least seven Democratic senators, assuming all 53 Republican senators vote in favor. Some Republicans also object to the current stablecoin yield provisions. (Bitcoin.com News)

Senate Democrats are meeting privately as they prepare for Tuesday's pivotal vote on the Clarity Act.

Senate Majority Leader Chuck Schumer will convene the Senate Democratic caucus to weigh the next steps for the CLARITY Bill, with members expected to discuss the legislation's prospects and determine whether to advance it.