Key Takeaways
The price of Bitcoin crossed $82,000 as Wall Street banking groups escalated their fight against a U.S. crypto bill, warning it could create a $6.6 trillion hole in the financial system.
"I am reaching out to make every bank leader in this country aware of an urgent advocacy fight that requires your immediate engagement,” American Bankers Association (ABA) chief executive Rob Nichols wrote in an open letter ahead of a key vote.
The letter targets the crypto market structure bill known as the Clarity Act, specifically a provision that would allow stablecoin balances to pay interest-like yield. The ABA and other banking groups cite a Treasury Department report estimating this could lead to as much as $6.6 trillion in deposit outflows. The odds of the Clarity Act passing this year jumped to 75 percent on the Polymarket prediction platform, up from 40 percent last month.
The bill is seen by many crypto investors as a major bullish catalyst for the market, potentially opening the door for more aggressive institutional participation during the second half of the year if it passes Congress. The legislative battle highlights the growing tension between traditional finance and the digital asset industry.
The ABA's letter sparked a strong rebuke from supporters of the bill. Senator Bernie Moreno, a Republican member of the Senate banking committee, accused the "banking cartel" of being in "full panic mode" and deceiving lawmakers. “Hands off the people’s money,” Moreno posted on X. “Let Americans choose real competition and better returns. No more shielding Wall Street from the future.”
The debate has also drawn comment from former U.S. President Donald Trump, who accused banks of trying to undermine his crypto agenda. "The banks are hitting record profits, and we are not going to allow them to undermine our powerful crypto agenda that will end up going to China," Trump posted in March.
The fresh legislative push coincides with a broad-based rally in digital assets. Bitcoin was trading at $82,145 as of 8 a.m. on May 11, according to CoinMarketCap data, up from lows near $60,000 in early February.
Other major cryptocurrencies have seen even stronger performance, with Ethereum (ETH) rising 1.59 percent to $2,377, while Solana (SOL) and Ripple (XRP) gained 2.76 percent and 3.26 percent, respectively. The outperformance of these more volatile "altcoins" is often seen as a sign of improving investor confidence and a growing appetite for risk.
Analysts caution that volatility remains a key risk. Ongoing geopolitical risks and uncertainties surrounding U.S. monetary policy could still lead to sharp price swings.
This article is for informational purposes only and does not constitute investment advice.
