"Wall Street's tricks won't work"...Trump pushes for cryptocurrency power restructuring

▲ Bitcoin (BTC) Regulation / ChatGPT generated image

The traditional financial sector is intentionally employing delaying tactics to postpone the introduction of virtual asset regulations. However, a fierce battle over regulatory leadership is unfolding as the strong wills of the administration and Congress clash.

Bill Hughes, Global Head of Regulatory Affairs at Consensys, analyzed in an interview with the cryptocurrency YouTube channel Paul Barron Network on April 26 (local time) that traditional banks are using procedural means to delay the finalization of regulatory guidelines. Hughes pointed out that banks have requested a halt to rule-making by other agencies until the Office of the Comptroller of the Currency (OCC) issues its final rules. There are concerns that if this request is accepted, the implementation of the stablecoin regulation bill GENIUS could be pushed back to late 2026 or even 2027. Fortunately, the Treasury Department currently maintains a negative stance on the banking sector's request for an extension, so there remains a possibility that the regulatory schedule will proceed as planned.

There is also a risk that the OCC's policy direction could narrow the legislative intent of Congress. The OCC has indicated the possibility of expanding the scope of the stablecoin profit ban to include reward programs or third-party affiliate services. Hughes warned that the OCC's framework could act as a regulatory ceiling for other agencies, hindering industrial innovation. Attempts by regulators to interpret congressional bills more narrowly than intended will result in stifling the growth of the virtual asset ecosystem.

The US Cryptocurrency Market Structure Bill (CLARITY) and the GENIUS Act are following different paths but are closely linked in the legislative environment. Banking interest groups are employing tactics to block or delay both bills. In contrast, US President Donald Trump has influenced legislative negotiations with his message that Americans should earn more from their assets. Scott Bessent, a candidate for Treasury Secretary, also assessed the bill as a national security priority, stating that stablecoins contribute to dollar hegemony and demand for US Treasury bonds. The Trump administration is also expanding its influence in the virtual asset sector through actions such as freezing Iran-related funds.

The Senate Banking Committee aims to process the bill by mid-May. There is also a possibility that the Republican majority may push for a markup despite Democratic opposition. Hughes stated that the target is to have a full Senate vote before the August recess. The fate of the institutionalization of the virtual asset market, including Bitcoin (BTC), is expected to be decided by the success or failure of this bill. Even if the bill fails to pass this year, market clarity is expected to gradually improve through the Treasury Department's rulemaking process and the Securities and Exchange Commission's (SEC) innovation exemption clauses.

Despite obstruction from the banking sector, the virtual asset industry continues its efforts to enter the federal regulatory framework. As the White House and the Treasury Department prefer a resolution through negotiation, a foundation for virtual asset companies to innovate safely is expected to be established. The regulatory battle between traditional finance and virtual assets has now entered its final stage. The market is preparing for a new era of expansion by securing regulatory clarity.

*Disclaimer: This article is for investment reference only and is not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*