US President Donald Trump issued a stern warning to the banking sector, claiming that obstacles posed by major banks are hindering progress on cryptocurrency legislation in the Senate. Trump’s remarks targeted the stalled momentum of the crypto-focused CLARITY Act, which he argued is being blocked by ongoing resistance from traditional financial institutions. His comments come at a moment when the cryptocurrency market is experiencing significant gains, drawing attention to the intersection of regulatory reform and digital asset growth.
Bank Influence Slows CLARITY Act
The CLARITY Act aims to reshape how digital assets are regulated in the United States, representing a pivotal shift in the legal framework. While the bill cleared the House of Representatives last year, it has struggled to advance in the Senate. According to Trump, the primary obstacle lies in the opposition from major banks. Financial institutions object to provisions that would allow crypto exchanges to offer yield on stablecoins held by users, cautioning that such measures could prompt deposit outflows from banks to digital platforms.
Trump used his personal social media platform to emphasize that continued banking barriers against digital assets undermine national security. He argued that, for the US to maintain its global financial leadership, it must adopt policies compatible with the digital economy.
Trump noted that banks have historically enjoyed high profits, but asserted that alleged banking restrictions should not be allowed to stand in the way of what he called a “strong crypto agenda.”
Regulatory Adjustments Take Shape
The US administration has started to introduce regulatory adjustments alongside proposed legislation. July saw the implementation of the Genius Act, designed to provide a framework for digital asset issuers. While this law set some parameters, it failed to address the issue of intermediaries offering yield to their users—an uncertainty the CLARITY Act aims to remedy.
Previous initiatives restricted relationships between banks and crypto firms, including a pressure tactic informally dubbed “Operation Choke Point 2.0,” enacted during the Biden administration. However, as of March 1, banks are no longer required to seek prior approval from the Office of the Comptroller of the Currency (OCC) for dealing with crypto-related transactions. Despite the removal of some regulatory hurdles, industry sources say hesitancy persists among banks in providing services to the digital asset sector.
Bitcoin Climbs Amid Regulatory Uncertainty
Amidst these policy debates, the cryptocurrency market has experienced a sharp upward trend. Bitcoin surged by more than six percent in European trading, climbing past the $71,000 mark—a performance unmatched in recent weeks. The total market capitalization for digital assets also crossed the $2.4 trillion threshold, underscoring strong momentum across the sector.
This rise in Bitcoin’s value has been fueled in part by investors hedging losses in precious metals, redirecting their portfolios toward digital assets. The cryptocurrency saw a notable jump of approximately ten percent following reports of US military action against Iran. Notably, ongoing strength in the US dollar has not exerted as much downward pressure on cryptocurrencies as some market watchers anticipated.
Experts suggest that if Bitcoin remains above the $70,000 level, the upward movement may continue. Conversely, a drop below this mark could see the price revisit support at $66,000. Forthcoming macroeconomic data and rising transaction volumes are expected to play a decisive role in determining Bitcoin’s trajectory in the near term.
