Bitcoin and crypto-linked stocks rally as Trump bashes banks for standing in the way of key regulation
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- Bitcoin rose above $73,000 on Wednesday, marking a breakout from the crypto's recent rut.
- Crypto-linked stocks, like Coinbase, Strategy, and Robinhood, also climbed.
- Trump slammed banks, siding with crypto players, amid an ongoing debate about regulation.
Bitcoin rose over 8% on Wednesday, marking a breakout from a recent rut that also helped lift crypto-linked stocks.
The cryptocurrency was trading at $73,856.75 at 3:00 p.m. ET on Wednesday. Coinbase was up 16%, while Strategy and Robinhood were up 11% and 8%, respectively.
Comments from President Donald Trump weighing in on a debate over regulation in the space were among the catalysts that helped boost the token. Here's what crypto markets were watching on Wednesday.
Trump slams banks, backs crypto industry
Bitcoin's Wednesday rally gained momentum after the president took to Truth Social to criticize big banks. He accused them of undermining The GENIUS Act, which created a regulatory framework for stablecoins.
Trump called on regulators to pass another key piece of legislation for the crypto industry, the Clarity Act. He warned that the crypto industry will leave the US for China if Congress doesn't act. The Clarity Act has passed the House with bipartisan support and still faces a vote in the Senate.
@realDonaldTrump on Truth Social
Trump's post bashing banks for undermining the crypto industry followed a reported White House meeting with Coinbase CEO Brian Armstrong. Details of the meeting were not revealed, but Trump's position largely aligns with Coinbase and the industry's view how the market should be regulated.
In a Tuesday interview, CNBC asked JPMorgan CEO Jamie Dimon about stablecoin regulation.
"If you are going to be holding balances and paying interest, that's the bank. You should be regulated like a bank," Dimon said.
The JPMorgan CEO argued that treating crypto firms as banks would level the playing field, avoid unfair competition, and ensure public safety. Dimon's remarks came after the Office of the Comptroller of the Currency proposed a rule under the Genuis Act.
"The proposal would establish transition standards for certain state-qualified issuers with more than $10 billion in outstanding issuance and addresses affiliate arrangements and limitations relating to stablecoin yield," lawyers at Paul Hastings wrote.
Crypto regulation has been a hot-button issue for investors, Wall Street, and politicians. Trump has been vocal about crypto being a priority for his administration, and the Trump family also deepened ties to the crypto industry during the president's second term.