Trump Backs Transatlantic Stablecoin Agreement – Why Now?
The biggest crypto story of the last 24 hours isn’t the price candle – it’s politics. President Trump has strengthened support for a new UK-US stablecoin plan as the Senate moves forward with the CLARITY Act despite growing opposition from banking groups over its stablecoin investment.
The plan itself came out of an organization called the Transatlantic Taskforce for Markets of the Future. Formed in September 2025, the working group described stablecoins as “an essential vehicle for the creation of digital currency,” and both governments agree that well-managed stablecoins can improve cross-border payments, financial market infrastructure, and competition while providing businesses with stability in both areas.
The ability to bar two parts that have been established is an important part. Regulated stablecoins must be backed one-on-one with a well-known, highly liquid asset under the laws of each country. And the most important thing for everyone who has these signs: in the event of insolvency or restructuring, the owners of stablecoin must be legally protected from the assets held before other creditors, according to domestic insolvency laws.
Trump’s intentions are not clear. He has repeatedly linked crypto legislation to his goal of making the United States the “crypto capital of the world” and continues to push the Senate to pass the CLARITY Act before the August deadline.
What is the CLARITY Act – and why does it stick?
If you’ve lost track of this bill, you’re not alone — it’s been brewing in Washington for over a year. The Digital Asset Market Clarity Act is a market-making bill that would divide oversight of digital assets between the SEC and CFTC, establish central rules, improve compliance and disclosure of the BSA, and add antitrust provisions to the CBDC. It passed the House with bipartisan support in July 2025.
Since then he has been locked up in the Senate on one issue above all others. The bill has been mired in controversy over stablecoins and whether digital asset companies can offer returns to customers.
Why Are US Banks Under Attack?
This is where the fight gets real. Banks don’t just hate crypto here – they’re worried about their depository sector. Banking groups say a number of factors are unclear and could encourage consumers and businesses to transfer money from traditional bank accounts to stablecoins. They have warned that continued bailouts could put pressure on local and regional banks that rely heavily on customer deposits to make loans, and have called on lawmakers to tighten the bill’s wording before it moves forward.
The numbers behind those fears are eye-popping. Analysts at Standard Chartered have previously reported that yield offers, if implemented, could redirect up to $1 trillion in deposits away from traditional banks to stablecoins by 2028. That’s the whole ballpark why the American Bankers Association has fought this line.
Interestingly, even some parts of the crypto industry are not comfortable with the current situation. Coinbase CEO Brian Armstrong withdrew his support for the CLARITY Act shortly before the Senate Banking Committee’s review, calling the bill “much worse than it is now” – a reminder that the “bad crypto law” worries both parties for different reasons.
How does this relate to Europe and MiCA?
For EU readers, the transatlantic aspect is important. Europe already has its own rulebook – MiCA – alive and well, with all the savings and redemption requirements that appear to be what the US and UK have just agreed to. Global trends are now moving towards stablecoins managed by one person, with legal frameworks. If you’re deciding where to hold or sell them, using an exchange regulated by MiCA is the safest bet because it’s secure.
Looking for a MiCA compatible home for your crypto? We’ve compared the leading exchanges powered by MiCA for pricing, backed stablecoins and security. ( See full comparison → )
Bitcoin Price Analysis: Cooldown Meets Political Tailwinds
Even as the management game played out, the market started to shake up from big data. $ Bitcoin it rose three weeks above $65K after US inflation data showed that the Consumer Price Index fell by 0.4% in June – the biggest monthly decline since April 2020, with annual inflation falling to 3.5%, below analysts’ forecasts. Inflation, excluding food and energy, fell to 2.6% from 2.9%.
Expect to resume inflation almost immediately. The odds of a Fed hike this month fell from 43% to 13% after the data was released. Not everyone believes it will end, however. The drop in prices was mainly driven by low oil prices in June amid the end of the US-Iran – but the war resumed, Brent crude rose back to $ 80, which can be seen in the CPI data for July.
As you write, the speed has cooled down a bit. Bitcoin is still up 3% over 24 hours but is down about 0.5% since midnight, with Ethereum up 4.7% in 24 hours before the same pullback. Levels to watch: traders are keeping an eye on the $64,800 resistance, with a warning of a possible drop, while the selling wall is at $65,000. A clean break above that opens the door to the June upside near $67,250. Sentiment is still fragile, though – the Crypto Fear and Greed Index rose to 25 but remains in the “very fearful” category.
Upcoming Events
- CLARITY Act Senate action – Trump wants it to pass before August; check the bottom vote and any discrepancies in yield.
- US PPI & PCE data – Producer prices are due soon, with PCE near the end of the month; both feed the Fed’s next reading on inflation.
- July FOMC meeting (July 28-29) – the price decision that all CPIs have.
- Oil / Strait of Hormuz – a wildcard that can lead to inflation and drag on dangerous goods.
