In a significant development for U.S. cryptocurrency regulation, the Trump administration is actively pushing for comprehensive legislation, while facing alleged resistance from traditional banking institutions. The push was highlighted by former President Donald Trump's remarks at the World Economic Forum in Davos, where he signaled that landmark crypto legislation could reach his desk "very soon," framing it as a priority to cement the United States as the global center of digital assets.
Eric Trump made explosive claims during a Fox Business interview in March 2025, asserting that major banking institutions are "doing everything they can" to prevent the passage of cryptocurrency-related legislation. These allegations suggest significant institutional resistance to regulatory clarity for digital assets, arriving amidst ongoing Congressional debates about multiple cryptocurrency bills currently under consideration by the 119th Congress.
The legislative process, however, has faced recent setbacks. Support for the bill fractured after Coinbase pulled its backing and a key Senate committee abruptly delayed a scheduled vote. The sharpest divide centers on stablecoins and whether rewards linked to them resemble traditional interest-bearing deposits. Banking groups argue that allowing platforms to offer rewards could drain deposits from smaller lenders and weaken the traditional banking system, while crypto firms contend that restricting third-party rewards would amount to shielding banks from competition.
Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, warned that momentum can evaporate quickly, even under a pro-crypto White House. This sense of urgency is shared by other officials and industry leaders. Brad Garlinghouse of Ripple argued that regulatory perfection is unrealistic and that a clear framework – even an imperfect one – would unlock innovation and investment.
Attention is now shifting to the Senate, where multiple committees hold pieces of the regulatory puzzle. The Senate Agriculture Committee is expected to release updated legislative text and hold a vote later this month, reflecting its expanding role in overseeing crypto markets through the Commodity Futures Trading Commission (CFTC). Meanwhile, the Senate Banking Committee has yet to reschedule its postponed hearing.
This development occurs within a specific political context where cryptocurrency regulation has become increasingly partisan. Republicans generally favor innovation-friendly frameworks with lighter oversight, while Democrats typically emphasize consumer protection and systemic risk mitigation. The Trump campaign began accepting cryptocurrency donations in 2024, representing a significant shift in Republican Party positioning on digital assets.
Financial policy experts offer nuanced interpretations. Dr. Sarah Chen of Georgetown University explained that "Banks face legitimate concerns about regulatory arbitrage," while former FDIC chair Jelena McWilliams suggested that "The banking industry seeks regulatory certainty like everyone else. Their advocacy focuses on ensuring any new framework maintains financial stability standards."
The stakes extend beyond a single bill, as this represents the first time a sitting U.S. president is openly pressing Congress to deliver comprehensive crypto legislation, with regulators and industry leaders largely aligned on the need for clarity. Whether lawmakers can bridge the remaining gaps will determine if this push becomes a historic turning point or another missed opportunity for U.S. crypto policy.
