Bitcoin stabilized on Wednesday, trading at $68,147.8 by 01:30 ET (06:30 GMT), after recovering to about $69,000 earlier in the week and then pulling back. Market participants found some encouragement from a public statement by U.S. President Donald Trump urging banks to support clearer crypto regulation, but ongoing geopolitical tensions with Iran kept risk appetite muted across the sector.
Trump used a social media post on Tuesday evening to criticize large U.S. banks, saying they were attempting to undermine the GENIUS act - legislation that governs stablecoins - by holding up passage of the separate CLARITY act in the U.S. Senate. In his post the president said: "Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda that will end up going to China, and other Countries if we don’t get The Clarity Act taken care of."
He added: "The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage. They need to make a good deal with the Crypto Industry." The message came after, according to a Politico report, a private meeting between Trump and Coinbase Global Inc (COIN) CEO Brian Armstrong. Armstrong has opposed a blanket ban on stablecoin yield payments.
The GENIUS act, which Congress approved in June 2025, restricts stablecoin issuers such as Tether from directly paying yields to holders. However, the law still permits third-party platforms, including crypto exchanges, to offer yields to stablecoin holders - a provision that has drawn criticism from major banking groups as a perceived loophole.
Banks have been pushing for a broader ban on stablecoin yield payments to be included in the CLARITY act, a separate bill meant to establish a market structure for crypto. While the House of Representatives passed CLARITY in July, the bill has not yet gained Senate approval. Disagreements over whether yield payments should be treated the same as bank interest have been central to that delay, with banks arguing stablecoin yields should face equivalent regulatory treatment to traditional interest payments.
Market reaction and broader crypto performance
Despite some regulatory optimism, broader crypto prices largely traded in a narrow range on Wednesday. The main restraint on risk-taking was continued unrest in the Middle East: reports indicated the U.S., Israel, and Iran conflict had extended into a fifth consecutive day, with hostilities against Tehran still active.
Investors cited concerns that the conflict could disrupt global oil supplies and therefore stoke inflation, a prospect that could prompt more hawkish moves from major global central banks. That macroeconomic uncertainty supported risk aversion and limited upside for crypto assets.
- Ether, the second-largest cryptocurrency by market value, slipped 1% to $1,979.99.
- XRP declined 0.2% to $1.3594.
- Solana and BNB saw little net movement.
- Cardano underperformed, dropping about 3%.
- Among meme tokens, Dogecoin fell 2.6% and $TRUMP lost roughly 3.4%.
Overall, the week’s price action reflected a tentative balance: political endorsements for clearer crypto rules provided some support, but macro and geopolitical uncertainties have so far prevented a sustained market rebound.
Outlook considerations
Market participants will likely watch developments in Washington on crypto legislation closely, particularly any shifts in the debate over stablecoin yield bans within CLARITY and the banking sector’s lobbying positions. At the same time, the trajectory of hostilities involving Iran and potential effects on oil markets are expected to remain key influences on investor risk appetite and, by extension, crypto price dynamics.