US President Donald Trump made a harsh warning about the obstacles to digital assets’ relations with the banking sector. The President argued that the progress of the cryptocurrency-focused CLARITY Act in the Senate was stalled due to banks’ obstruction. This attack by Trump on banks coincided with a period when the crypto market was experiencing a serious rise.
The Role of Banks in the CLARITY Act
The CLARITY Act is a bill that aims to radically change the way digital assets are regulated in the United States. Although the bill passed the House of Representatives last year, it has failed to advance in the Senate. Trump cited the attitude of major banks towards digital assets as the basis for the delay. The main reason why banks oppose some articles is that they contain articles that will pave the way for crypto exchanges to provide return payments to users who hold stablecoins. Traditional financial institutions point out that this situation may cause their deposits to shift to digital platforms.
In his statement on his personal social media platform, Trump stated that banking barriers imposed on digital assets weaken national security. He emphasized that the USA should take steps compatible with the digital economy in order to maintain its global superiority in the financial field.
Trump said banks have made historically high profits, but the alleged obstructions should not be allowed to stand in the way of his “strong crypto agenda.”
Latest Developments in Legal Regulations
The US administration began to make changes in regulations along with legislation. Finally, a framework was created for issuers with the Genius Act, which came into force in July. However, this law did not make a provision for brokerage firms to offer returns to their users. The CLARITY Act was prepared to resolve this uncertainty.
Among the previous practices that limited the relations of banks and financial institutions with cryptocurrency companies were the indirect pressure strategies implemented during the Biden administration and referred to as “Operation Choke Point 2.0”. As of March 1, the OCC approval that banks must obtain for crypto transactions has been removed. However, information from the sector reveals that reservations continue in the banking sector despite the loosening of legal obstacles.
Rapid Rise in Bitcoin Price
In the shadow of all these developments, an accelerated rise began in the crypto market. Bitcoin had one of its best performances in recent weeks, rising over 6 percent to above $71,000 in European trading. The total crypto market value also exceeded the $2.4 trillion level.
The rise of Bitcoin was influenced by the fact that some investors shifted their portfolios to digital assets after the decline in precious metals. Following the US military initiative against Iran, the Bitcoin price rose by approximately 10 percent. Despite this, the strengthening of the US dollar does not seem to create a significant pressure in the crypto space.
Experts point out that if Bitcoin continues to stay above the $ 70,000 level, the upward movement may continue. Otherwise, the possibility of the price falling to the $66,000 support is evaluated. Macroeconomic data and increasing transaction volume to be announced in the near future are expected to be decisive on the direction Bitcoin can follow.
