On Wednesday, stocks of major cryptocurrency firms, most notably Coinbase, witnessed a substantial uplift after former President Donald Trump voiced his support for the crypto industry's ongoing dispute with U.S. banks over yield-generating stablecoins. This support acted as a catalyst, enhancing the positive market sentiment driven by a recovery in Bitcoin's price.
Coinbase saw its shares rise by more than 12%. Likewise, other digital asset companies like Strategy and Circle experienced gains of 9% and nearly 6%, respectively. In contrast, traditional banks such as JPMorgan Chase and Bank of America saw their shares dip by less than 1%.
"The Genius Act is being threatened and undermined by the Banks, and that is unacceptable," Trump declared in a social media post late on Tuesday. "They need to make a good deal with the Crypto Industry because that's what's in best interest of the American People."
This issue involves allowing firms to issue dollar-pegged digital tokens that provide returns similar to interest, which remains a crucial aspect of the Clarity Act – a proposed framework for regulating the crypto market in the U.S. Congress.
Additionally, the crypto sector benefited from a rebound in major cryptocurrencies, with both Bitcoin and Ether advancing 5% and 6% on Wednesday, respectively.