Bitcoin Holds Near $68K as Trump Calls for Stronger Crypto Regulation
Bitcoin traded mostly unchanged on Wednesday after receiving modest support from U.S. President Donald Trump, who called for stronger regulatory backing for the cryptocurrency industry.
However, ongoing concerns about the U.S.-Iran conflict and its potential impact on global inflation continued to weigh on the broader crypto market. These geopolitical risks also limited a brief recovery attempt in digital assets earlier in the week.
As of 01:30 ET (06:30 GMT), Bitcoin was trading nearly flat at $68,147.8. The world’s largest cryptocurrency had briefly climbed to $69,000 earlier in the week, before giving back part of those gains.
Trump Criticizes Banks Over Stablecoin Regulation
In a social media post on Tuesday evening, President Trump criticized major U.S. banks for allegedly trying to weaken the GENIUS Act, a law designed to regulate stablecoins. According to Trump, banks are attempting to stall the progress of another important crypto regulation bill, the CLARITY Act, in the U.S. Senate.
Trump argued that large banking institutions are protecting their own interests while hindering the growth of the cryptocurrency sector.
He stated that banks should not undermine the GENIUS Act or delay the passage of the CLARITY Act, emphasizing that the financial sector should instead work with the crypto industry to reach a fair regulatory framework.
Reports from Politico also revealed that Trump privately met with Coinbase CEO Brian Armstrong shortly before publishing his remarks. Armstrong has previously opposed proposals to ban stablecoin yield payments, which remain a controversial issue among regulators and traditional banks.
Stablecoin Regulation Debate Intensifies
The GENIUS Act, passed by Congress in June 2025, introduced regulatory oversight for stablecoins. One of its provisions prohibits stablecoin issuers, including companies such as Tether, from directly offering yield payments to token holders.
However, the legislation still allows third-party platforms like cryptocurrency exchanges to provide yield services on stablecoins. Banking institutions have criticized this arrangement, describing it as a regulatory loophole.
Major banking groups have therefore pushed for stricter rules within the CLARITY Act, a broader crypto regulation bill designed to establish a clear market structure for digital assets.
Although the House of Representatives approved the CLARITY Act in July, the bill remains stalled in the Senate. Disagreements over whether stablecoin yield payments should be treated similarly to bank interest payments have contributed significantly to the delay.
Altcoins Remain Under Pressure as Geopolitical Risks Persist
The broader cryptocurrency market remained relatively subdued on Wednesday. While optimism about potential U.S. crypto regulation offered some support, investor risk appetite remained limited due to ongoing geopolitical tensions in the Middle East.
Reports indicated that hostilities involving the United States, Israel, and Iran entered their fifth consecutive day, adding uncertainty to global financial markets.
Investors are particularly worried that the conflict could disrupt global oil supplies, potentially fueling higher inflation and prompting major central banks to maintain hawkish monetary policies.
Crypto Market Performance
Among major cryptocurrencies, Ethereum declined 1% to $1,979.99, while XRP slipped 0.2% to $1.3594.
Other large digital assets showed limited movement. Solana and BNB traded mostly unchanged, while Cardano lagged the market with a 3% decline.
In the meme coin segment, Dogecoin dropped 2.6%, and the $TRUMP token fell 3.4%.
