Bitcoin stabilized on Wednesday, receiving a slight boost from US President Donald Trump's call for better regulatory support for the cryptocurrency industry.
But persistent concerns about the US-Iran conflict and its inflationary effects have kept cryptocurrency prices largely under pressure, and have hampered the sector's short-term recovery.
Bitcoin was steady at $68,147.80 by 9:30 AM Saudi time. The world's largest cryptocurrency had rebounded to $69,000 earlier this week before paring its gains.
Trump criticizes banks for undermining the Stable Currency Act and obstructing the Clarity Bill.
In a social media post Tuesday evening, Trump criticized major U.S. banks for trying to undermine the GENIUS Act – which regulates stablecoins – by blocking the passage of another key regulatory bill – the CLARITY Act – in the U.S. Senate.
Trump said: “Banks are making record profits, and we will not allow them to undermine our strong cryptocurrency agenda, which will end up going to China and other countries if we do not take care of the CLARITY Act.”
The president said: Banks should not try to undermine the GENIUS Act or hold the CLARITY Act hostage. They need to make a good deal with the cryptocurrency industry.
A report from Politico stated that Trump met privately with Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong just before publishing his post. Armstrong has been a vocal opponent of banning yield payments on stablecoins.
The GENIUS Act was passed by Congress in June 2025 to regulate stablecoins, with the law prohibiting stablecoin issuers such as Tether from paying returns directly to holders.
But external platforms such as cryptocurrency exchanges are still allowed to offer returns to holders of stablecoins - a feature that major banking groups have criticized as a loophole.
Banking groups have been seen pushing for a ban on all stablecoin payouts to be included in a separate cryptocurrency regulatory law - CLARITY - which aims to create a market structure for cryptocurrencies.
The bill was passed by the House of Representatives in July, but has yet to be approved by the Senate. Disagreements over banning yields have been a major part of the delay, with major banks arguing that yield payments on stablecoins should face the same regulatory treatment as interest payments made by banks.
Cryptocurrency prices today: Altcoins fluctuate amid ongoing tensions with Iran
Prices for the broader cryptocurrency market moved in a narrow range on Wednesday, as despite some optimism about US regulations, risk appetite remained largely subdued due to ongoing geopolitical turmoil in the Middle East.
Reports showed that the conflict between the United States, Israel and Iran entered its fifth consecutive day on Wednesday, with hostilities against Tehran largely continuing.
Concern about the inflationary effects of the conflict – particularly as it threatens to disrupt global oil supplies – has weighed heavily on markets, amid growing fears that stubborn inflation will lead to aggressive moves by the world’s major central banks.
This aversion to risk has remained widespread, with limited strength seen in cryptocurrency prices.
The world's second-largest cryptocurrency, Ether, fell 1% to $1,979.99, while XRP dropped 0.2% to $1.3594.
Solana and BNB moved slightly higher, while Cardano lagged behind with a 3% decline.
Among the meme symbols, Dogecoin fell by 2.6%, while $TRUMP lost 3.4%.
