Trump’s social media post on crypto bill ‘not enough’ to move legislation, TD Cowen says

TD Cowen's Jaret Seiberg stated that while President Trump's call for banks to reach a deal with the crypto industry regarding the CLARITY Act is constructive, his social media post alone is insufficient to break the legislative deadlock. Seiberg argues that direct presidential participation in negotiations between banks and the crypto sector is required, which seems unlikely given current geopolitical tensions. The legislation is stalled primarily over two issues: whether crypto companies can offer yield on stablecoins (which banks oppose due to financial stability concerns) and proposed conflict-of-interest rules restricting senior government officials' crypto activities. Seiberg suggests a compromise on the yield issue might involve delaying the conflict-of-interest restrictions until after 2029. The bill, which aims to create a comprehensive digital asset regulatory framework, needs support from ten Democratic senators to advance in the Senate, and talks are paused pending resolution of the yield dispute.

(Source：The Block)