Bitcoin was little changed on Wednesday, drawing modest support after Donald Trump called for stronger regulatory backing of the crypto sector.
Still, lingering concerns over the escalating U.S.-Iran conflict—and its potential inflationary fallout—kept broader digital asset markets under pressure, capping what had been a brief rebound earlier in the week.
Bitcoin was flat at $68,147.8 as of 01:30 ET (06:30 GMT). The token had briefly climbed back toward $69,000 earlier this week before surrendering part of those gains.
Trump targets banks over crypto legislation
In a Tuesday evening social media post, Trump accused major U.S. banks of attempting to weaken the GENIUS Act—legislation regulating stablecoins—by delaying progress on the CLARITY Act in the Senate. The latter bill aims to establish a broader regulatory framework for crypto markets.
Trump argued that record bank profits should not come at the expense of the administration’s crypto agenda, warning that failure to pass the CLARITY Act could drive innovation overseas. He urged banks to support, rather than obstruct, efforts to formalize rules for the industry.
According to reports, Trump met privately with Brian Armstrong, CEO of Coinbase, shortly before issuing his remarks. Armstrong has opposed a full ban on yield payments for stablecoins.
The GENIUS Act, passed in June 2025, prohibits issuers such as Tether from directly paying yields to holders. However, third-party platforms like exchanges may still offer such returns—an arrangement banking groups argue creates a regulatory loophole.
The CLARITY Act, approved by the House in July but still awaiting Senate passage, has faced delays largely due to disagreements over whether stablecoin yield payments should be regulated similarly to bank interest payments.
Altcoins muted amid geopolitical strain
Broader crypto markets traded within a narrow range on Wednesday. While optimism over potential U.S. regulatory clarity provided some support, investor sentiment remained constrained by ongoing tensions in the Middle East.
With the U.S., Israel, and Iran conflict entering its fifth day, fears of supply disruptions—particularly in global oil markets—have fueled inflation concerns. Persistent price pressures could prompt major central banks to maintain a hawkish stance, dampening appetite for risk assets, including cryptocurrencies.
Among major tokens, Ethereum fell 1% to $1,979.99, while XRP slipped 0.2% to $1.3594. Solana and BNB were little changed, while Cardano declined 3%. In the meme coin segment, Dogecoin dropped 2.6%, and TRUMP slid 3.4%.
Sources: Ambar Warrick
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