Trump supports transatlantic stablecoin deal – why now?
The biggest cryptocurrency story of the past 24 hours isn’t a price candle — it’s a political one. President Trump has strengthened his support for a new UK-US stablecoin framework as the Senate races to advance the CLARITY Act despite growing opposition from banking groups over stablecoin provisions.
The framework itself came out of a body called the Transatlantic Task Force on Future Markets. Established in September 2025, the task force described stablecoins as “an important vehicle for digital money innovation,” and both governments agreed that properly regulated stablecoins could improve cross-border payments, financial market infrastructure, and competition while giving businesses more consistent regulatory treatment across both jurisdictions.
The technical tape set by both sides is the important part. Individually regulated stablecoins must be backed by clearly defined, high-quality liquid reserve assets under each country’s legal framework. Most importantly for anyone holding these tokens: during insolvency or restructuring, stablecoin holders should have legally protected claims on reserve assets before other creditors, subject to local insolvency laws.
Trump’s motive is not hidden. He has repeatedly linked cryptocurrency legislation to his goal of making the United States the “crypto capital of the world” and has continued to push the Senate to pass the CLARITY Act before the August recess.
What is the Law of Clarity – and why is it still stuck?
If you can’t follow this bill, you’re not alone, it’s been grinding in Washington for more than a year. The Digital Asset Market Clarity Act is a federal market structure bill that would split oversight of digital assets between the SEC and CFTC, establish intermediary rules, address self-custody and BSA coverage, and add anti-CBTC provisions. It received House approval with bipartisan support in July 2025.
Since then, she has been stuck in the Senate on one issue above all others. The bill has been bogged down by a highly controversial provision regarding stablecoins and whether digital asset companies can offer a return to customers.
Why are American banks revolting against it?
This is where the battle gets real. Banks don’t just hate cryptocurrencies here, they’re concerned about their deposit base. Banking groups have argued that many provisions remain too unclear and could encourage consumers and businesses to move money from traditional bank accounts to stablecoins. They warned that continued deposit outflows could put additional pressure on community and regional banks that rely heavily on customer deposits for lending, and called on lawmakers to tighten the bill’s wording before moving forward.
The numbers behind this fear are staggering. Standard Chartered analysts previously estimated that the yield provision, if enacted, could redirect as much as $1 trillion in deposits away from traditional banks and toward stablecoin products by 2028. This is the whole game of why the American Bankers Association is fighting this line by line.
Interestingly, even parts of the cryptocurrency industry are not fully compliant with the current draft. Coinbase CEO Brian Armstrong withdrew his support for the CLARITY Act shortly before the Senate Banking Committee review, calling the project “materially worse than the status quo” — a reminder that “bad crypto law” worries both sides for very different reasons.
How does this relate to Europe and Mica?
For EU readers, the transatlantic angle is important. Europe already has its own rulebook – MiCA – alive and in place, with fully backed reserves and recovery requirements that are very similar to what the US and UK have just agreed in principle. It is now clear that the direction of travel globally is towards individually backed and legally-fenced stablecoins. If you are choosing where to hold or trade them, using a MiCA regulated exchange is the safest bet as these frameworks become more stringent.
Want a MiCA-compliant home for your cryptocurrencies? We compared leading MiCA-regulated exchanges on fees, supported stablecoins, and security. ( See full comparison → )
Bitcoin Price Analysis: Cool Inflation Meets Political Tailwinds
While the regulatory drama continues, the market has received its own jolt from macro data. $ Bitcoin The US dollar reached a three-week high above $65,000 after US inflation data showed the Consumer Price Index fell 0.4% in June – the biggest monthly decline since April 2020, with annual inflation slowing to 3.5%, below analysts’ expectations. Core inflation, excluding food and energy, fell to 2.6% from 2.9%.
This reset interest rate hike expectations almost immediately. The odds of a Fed rate hike this month fell from 43% to just 13% after the data was released. But not everyone is convinced it will continue. The decline in inflation was largely driven by lower oil prices in June amid the US-Iran ceasefire – but as fighting resumed, Brent crude oil rose again towards $80, which may be showing in July’s CPI data.
As of writing, momentum has eased slightly. Bitcoin is still up about 3% over 24 hours but has fallen by about 0.5% since midnight, with Ethereum rising by 4.7% in 24 hours before a similar decline. Levels to Watch: Traders are closely monitoring a resistance level at $64,800, with some warning of a potential lower rally, while a sell wall is located at $65,000. A clear break above that level opens the door towards the June high near $67,250. Sentiment remains fragile, although the Cryptocurrency Fear and Greed Index rose to 25 but is still in the “extreme fear” zone.
Upcoming events to watch
- Senate Clarity Act -Trump wants to pass it before the August recess; Keep an eye on voting and any last-minute compromise on yield savings.
- US Producer Price Index and Personal Consumption Expenditures data — Producer prices to be released soon, with personal consumption expenditures nearing the end of the month; Both feed into the Fed’s next reading on inflation.
- July FOMC meeting (July 28-29) – The price decision around which all CPI centers revolve.
- Oil/Strait of Hormuz – Allowance that can spark inflation and withdraw risky assets.
