Bitcoin surged past $98,000 in early trading Thursday, fueled by Donald Trump’s public endorsement of the Clarity for Payment Stablecoins Act. The move signals a potential pivot in Washington’s approach to digital assets, sending crypto-linked stocks like Coinbase and MicroStrategy rallying alongside the broader market.
Trump’s vocal support for the legislation—a bill designed to establish a federal regulatory framework for stablecoins—has shifted market sentiment overnight. Investors view his comments as a clear departure from the regulatory hostility that defined the previous administration’s stance on decentralized finance.
“We need a framework that provides certainty, not one that punishes innovation,” Trump said in a statement Wednesday.
The market response was immediate. Bitcoin climbed 4% within hours of the news, while major altcoins followed the upward trend. Wall Street firms, previously cautious about the regulatory landscape, are now recalibrating their positions.
Analysts point out that the Clarity Act would provide the legal certainty institutional players have demanded for years. By bringing stablecoins under the oversight of the Federal Reserve rather than a patchwork of state regulators, the bill aims to stabilize the sector.
For crypto exchanges, the stakes are high. Coinbase shares climbed 7% in pre-market trading, reflecting optimism that a federal mandate could end the ongoing legal battles with the Securities and Exchange Commission.
Yet, the bill faces hurdles. Critics in the Senate argue that the current draft lacks sufficient consumer protections and could undermine existing banking regulations. Democratic leadership has signaled they will push for tighter controls on reserve requirements before allowing the bill to reach the floor.
Despite the legislative friction, the political shift is undeniable. Investors are pricing in a new era of federal oversight that trades the SEC’s “regulation by enforcement” approach for a concrete, industry-friendly statute.
Whether the bill clears Congress before the session ends is an open question. For now, the market is betting that the political winds have finally turned in its favor.
