Big Banks vs. Bitcoin: Trump’s Crypto Revolution Faces Wall Street Resistance

What Happened

A new power struggle is unfolding in the financial world as President Trump pushes to make the United States the global leader in cryptocurrency. His administration has already backed significant pro-crypto legislation, including the GENIUS Act.

This act passed the Senate last week and lays the foundation for federal oversight of stablecoins. The bill, now heading to the House, represents the most concrete legislative step yet in formalizing America’s role in the future of digital finance.

But not everyone is on board. Wall Street’s biggest banks are quietly mounting resistance to Trump’s agenda. They warn that the rapid expansion of crypto-friendly policies could weaken their dominance over the financial system. Bank executives argue that loosening traditional regulatory structures and promoting decentralized digital currencies could lead to increased market volatility or gaps in consumer protections.

Despite these concerns, Trump’s pro-crypto platform is gaining momentum. Alongside the GENIUS Act, earlier legislation known as FIT21 passed the House in 2024. It aims to clarify how digital assets are regulated in the U.S. 

These moves suggest a clear shift in how the U.S. government – under the Trump administration – is embracing cryptocurrency. It’s doing so at a pace that leaves legacy financial institutions uneasy.

Why It Matters

The ongoing fight over crypto is more than a technical policy debate. It’s a clash over who controls the future of money. Trump’s vision, which is now backed by tangible legislation, seeks to unlock fintech innovation, attract investment, and reduce bureaucratic red tape that many critics believe has stifled blockchain development.

Supporters argue that by providing regulatory clarity, the U.S. can become the global epicenter for digital finance, competing with Europe and Asia’s rapidly growing crypto markets.

However, for Wall Street, the rise of crypto represents a threat to their longstanding grip on financial transactions, customer data, and global payment systems.

If stablecoins and other digital currencies continue to gain more mainstream acceptance, banks could see a decline in transaction fees, deposits, and influence over the money supply itself.

The GENIUS Act may be the first of many steps when it comes to formalizing crypto, but it signals broader disruption to the financial industry’s foundations.

How It Affects You

Trump’s push to legalize and regulate digital assets could bring more choices to consumers. It could also mean easier access to blockchain-based services, and financial products beyond the reach of traditional banks. That would translate to faster payments, lower fees, and new investment opportunities.

But there are risks, too. Should the crypto industry grow without sufficient guardrails, it could lead to increased scams, market crashes, or gaps in consumer protections. And supposing traditional banks lose ground, they may push back with higher fees, lobbying for stricter restrictions, or limiting access to financial services.

The fight over crypto regulation isn’t happening solely in the niche digital assets industry anymore. It’s happening in Congress and on Wall Street. Whether Trump’s vision reshapes the financial system for the better or simply shifts the balance of power remains to be seen.