Trump Backs Crypto Firms in Battle with Banks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy COIN?
Source: Newsfilter
- Trump's Endorsement: Trump publicly supports crypto firms on social media, stating that banks' stance on stablecoin yields is unacceptable, indicating his desire to broker a favorable deal between the crypto industry and banks to protect American interests.
- Legislative Impasse: The yield issue on stablecoins is a key obstacle to the passage of the Clarity Act in Congress, which is a companion bill to the Genius Act approved last year, aimed at establishing a framework for regulated stablecoins.
- Potential Conflict of Interest: Trump's and his family's investments in the crypto industry raise questions about potential conflicts of interest, particularly given their reported hundreds of millions in wealth from firms like World Liberty Financial, which may influence his policy stance.
- Banking Concerns: Major banks like JPMorgan Chase and Bank of America warn that allowing yields on stablecoins could lead to a loss of up to $6.6 trillion in deposits, threatening the stability of smaller banks and the availability of funding for business loans.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 182.360
Low
230.00
Averages
361.63
High
440.00
Current: 182.360
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the cryptoeconomy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. Its platform helps people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and global transfers. It offers products and services to various customer groups: individuals, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime Trading, markets, base protocol and Coinbase wallet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Backs Coinbase in Crypto Bill Lobbying Dispute
- Trump Meets Coinbase CEO: U.S. President Trump privately met with Coinbase CEO Brian Armstrong on Tuesday, later publicly supporting Coinbase's stance in a lobbying dispute with banks, indicating his attention and support for the cryptocurrency industry.
- Crypto Bill Stalled: Trump urged banks to make a good deal with the crypto industry to advance the market-structure bill, emphasizing that the threat posed by banks to the recently adopted Genius Act is unacceptable, echoing Coinbase's position.
- High-Yield Rewards Controversy: Crypto platforms like Coinbase offer rewards of up to 3.5% annual yield for stablecoin holders, significantly higher than traditional bank deposit rates averaging below 0.1%, raising concerns on Wall Street about potential deposit shifts that could undermine lending supporting the broader economy.
- Call for New Regulatory Framework: The proposed bill aims to set new rules for regulating crypto tokens, with Coinbase playing a central role in advocating for this legislation, which seeks to provide much-needed regulatory clarity for the digital asset industry.
See More
Trump Backs Crypto Firms in Battle with Banks Over Stablecoin Yields
- Trump's Support: Trump publicly supports crypto firms on social media, urging banks to relent on stablecoin yield issues, a stance that could sway Republican votes and facilitate the passage of the Clarity Act.
- Market Reaction: Following Trump's endorsement, Coinbase shares surged by 11% in early trading on Wednesday, while shares of JPMorgan and Bank of America fell by less than 1%, reflecting market optimism towards the crypto sector.
- Bank Concerns: Executives from JPMorgan and Bank of America warned that allowing yields on stablecoins could lead to a loss of up to $6.6 trillion in deposits, destabilizing smaller banks and affecting their lending capabilities.
- Industry Meetings: Trump has hosted a series of meetings at the White House to broker a deal between crypto firms and banks, and while banks have yet to relent, his support may bring new hope to the crypto industry.
See More
Trump Backs Crypto Firms in Battle with Banks
- Trump's Endorsement: Trump publicly supports crypto firms on social media, stating that banks' stance on stablecoin yields is unacceptable, indicating his desire to broker a favorable deal between the crypto industry and banks to protect American interests.
- Legislative Impasse: The yield issue on stablecoins is a key obstacle to the passage of the Clarity Act in Congress, which is a companion bill to the Genius Act approved last year, aimed at establishing a framework for regulated stablecoins.
- Potential Conflict of Interest: Trump's and his family's investments in the crypto industry raise questions about potential conflicts of interest, particularly given their reported hundreds of millions in wealth from firms like World Liberty Financial, which may influence his policy stance.
- Banking Concerns: Major banks like JPMorgan Chase and Bank of America warn that allowing yields on stablecoins could lead to a loss of up to $6.6 trillion in deposits, threatening the stability of smaller banks and the availability of funding for business loans.
See More
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- Bitcoin Price Surge: Bitcoin crossed the $70,000 mark in early Wednesday trading, reaching $70,906.31, which represents a 4.85% increase over 24 hours and an 8.29% rise over the past week, indicating strong market demand and a recovery in investor confidence.
- Global Market Capitalization Growth: The global crypto market capitalization reached $2.41 trillion, up 4.64% in the past 24 hours, reflecting a resurgence of investor interest in crypto assets, which may attract more capital into the sector.
- Ethereum's Strong Performance: Ethereum traded at $2,051.11, up 3.67% in 24 hours, aligning with Bitcoin's upward trend and further enhancing the overall vitality of the crypto market.
- Market Context Analysis: Crypto-related stocks jumped in premarket trading as risk assets attempted to stabilize following global volatility tied to the Middle East conflict, although oil prices remained elevated, market sentiment improved due to U.S. Navy intervention measures.
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- Ross Stores Earnings Beat: Ross Stores reported fourth-quarter earnings of $2.00 per share, surpassing analysts' expectations of $1.90, with sales rising 12.2% year-over-year to $6.64 billion, demonstrating the company's ability to maintain strong sales growth amid economic uncertainty.
- CrowdStrike Strong Guidance: CrowdStrike anticipates earnings between $1.06 and $1.07 per share and revenue of $1.36 to $1.364 billion for the first quarter, both exceeding analyst expectations, indicating the company's ongoing growth potential in the cybersecurity sector.
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- Oil Price Surge: Amid the ongoing U.S.-Israel-Iran conflict, April WTI crude futures rose by 1.05% to $75.34 per barrel, reflecting market concerns over energy supply disruptions.
- Market Response: Despite the tensions in the Middle East, S&P futures increased by 0.13%, Dow futures edged up by 0.03%, and Nasdaq futures rose by 0.22%, indicating a recovery in investor confidence.
- Trump's Statement: President Trump announced that the U.S. will ensure the free flow of energy globally and may deploy the Navy to escort tankers through the Strait of Hormuz, aiming to alleviate concerns over potential supply interruptions.
- Bitcoin Impact: Bitcoin surged nearly 7% in the past 24 hours, boosting stocks like Strategy, Robinhood, and Coinbase in pre-market trading, highlighting the active state of the cryptocurrency market.
See More
Trump Backs Coinbase in Crypto Bill Lobbying Dispute
- Trump Meets Coinbase CEO: U.S. President Trump privately met with Coinbase CEO Brian Armstrong on Tuesday, later publicly supporting Coinbase's stance in a lobbying dispute with banks, indicating his attention and support for the cryptocurrency industry.
- Crypto Bill Stalled: Trump urged banks to make a good deal with the crypto industry to advance the market-structure bill, emphasizing that the threat posed by banks to the recently adopted Genius Act is unacceptable, echoing Coinbase's position.
- High-Yield Rewards Controversy: Crypto platforms like Coinbase offer rewards of up to 3.5% annual yield for stablecoin holders, significantly higher than traditional bank deposit rates averaging below 0.1%, raising concerns on Wall Street about potential deposit shifts that could undermine lending supporting the broader economy.
- Call for New Regulatory Framework: The proposed bill aims to set new rules for regulating crypto tokens, with Coinbase playing a central role in advocating for this legislation, which seeks to provide much-needed regulatory clarity for the digital asset industry.
See More
Trump Backs Crypto Firms in Battle with Banks Over Stablecoin Yields
- Trump's Support: Trump publicly supports crypto firms on social media, urging banks to relent on stablecoin yield issues, a stance that could sway Republican votes and facilitate the passage of the Clarity Act.
- Market Reaction: Following Trump's endorsement, Coinbase shares surged by 11% in early trading on Wednesday, while shares of JPMorgan and Bank of America fell by less than 1%, reflecting market optimism towards the crypto sector.
- Bank Concerns: Executives from JPMorgan and Bank of America warned that allowing yields on stablecoins could lead to a loss of up to $6.6 trillion in deposits, destabilizing smaller banks and affecting their lending capabilities.
- Industry Meetings: Trump has hosted a series of meetings at the White House to broker a deal between crypto firms and banks, and while banks have yet to relent, his support may bring new hope to the crypto industry.
See More
Trump Backs Crypto Firms in Battle with Banks
- Trump's Endorsement: Trump publicly supports crypto firms on social media, stating that banks' stance on stablecoin yields is unacceptable, indicating his desire to broker a favorable deal between the crypto industry and banks to protect American interests.
- Legislative Impasse: The yield issue on stablecoins is a key obstacle to the passage of the Clarity Act in Congress, which is a companion bill to the Genius Act approved last year, aimed at establishing a framework for regulated stablecoins.
- Potential Conflict of Interest: Trump's and his family's investments in the crypto industry raise questions about potential conflicts of interest, particularly given their reported hundreds of millions in wealth from firms like World Liberty Financial, which may influence his policy stance.
- Banking Concerns: Major banks like JPMorgan Chase and Bank of America warn that allowing yields on stablecoins could lead to a loss of up to $6.6 trillion in deposits, threatening the stability of smaller banks and the availability of funding for business loans.
See More
Bitcoin Surpasses $70,000, Boosting Crypto Stocks
- Bitcoin Price Surge: Bitcoin crossed the $70,000 mark in early Wednesday trading, reaching $70,906.31, which represents a 4.85% increase over 24 hours and an 8.29% rise over the past week, indicating strong market demand and a recovery in investor confidence.
- Global Market Capitalization Growth: The global crypto market capitalization reached $2.41 trillion, up 4.64% in the past 24 hours, reflecting a resurgence of investor interest in crypto assets, which may attract more capital into the sector.
- Ethereum's Strong Performance: Ethereum traded at $2,051.11, up 3.67% in 24 hours, aligning with Bitcoin's upward trend and further enhancing the overall vitality of the crypto market.
- Market Context Analysis: Crypto-related stocks jumped in premarket trading as risk assets attempted to stabilize following global volatility tied to the Middle East conflict, although oil prices remained elevated, market sentiment improved due to U.S. Navy intervention measures.
See More
Moderna Settles Covid Vaccine Patent Dispute for $2.25 Billion
- Moderna Settlement: Moderna has agreed to pay up to $2.25 billion to settle a patent dispute with Biopharma Corporation and Genevant Sciences GmbH over its Covid vaccine, which is expected to mitigate legal risks and stabilize the company's market performance moving forward.
- Ross Stores Earnings Beat: Ross Stores reported fourth-quarter earnings of $2.00 per share, surpassing analysts' expectations of $1.90, with sales rising 12.2% year-over-year to $6.64 billion, demonstrating the company's ability to maintain strong sales growth amid economic uncertainty.
- CrowdStrike Strong Guidance: CrowdStrike anticipates earnings between $1.06 and $1.07 per share and revenue of $1.36 to $1.364 billion for the first quarter, both exceeding analyst expectations, indicating the company's ongoing growth potential in the cybersecurity sector.
- Box Strong Performance: Box reported fourth-quarter earnings of 49 cents per share, exceeding the 34 cents expected by analysts, with revenue of $306 million, showcasing the company's competitiveness in the content management market and confidence in future growth.
See More
Crude Oil Prices Surge Amid Ongoing Middle East Conflict
- Oil Price Surge: Amid the ongoing U.S.-Israel-Iran conflict, April WTI crude futures rose by 1.05% to $75.34 per barrel, reflecting market concerns over energy supply disruptions.
- Market Response: Despite the tensions in the Middle East, S&P futures increased by 0.13%, Dow futures edged up by 0.03%, and Nasdaq futures rose by 0.22%, indicating a recovery in investor confidence.
- Trump's Statement: President Trump announced that the U.S. will ensure the free flow of energy globally and may deploy the Navy to escort tankers through the Strait of Hormuz, aiming to alleviate concerns over potential supply interruptions.
- Bitcoin Impact: Bitcoin surged nearly 7% in the past 24 hours, boosting stocks like Strategy, Robinhood, and Coinbase in pre-market trading, highlighting the active state of the cryptocurrency market.
See More
