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CLARITY Act News: Trump Administration Confronts Banks Over Crypto Banking Access

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The CLARITY Act is back in the news again after Trump went on the offensive with US banks for blocking further progress

President Donald Trump has issued a direct warning to the banking industry: stop blocking crypto or face consequences. This came as the CLARITY Act is currently at a standstill, with the President now blaming the banks.

In a late Tuesday statement (March 3), Trump accused major financial institutions of undermining his administration’s digital asset agenda.

This news broke as the crypto market moved higher overnight, surging 2.6% and pushing the total crypto market cap over $2.4 trillion.

Bitcoin USD has surged in the European morning trading session, flying back above $71,000 with a +6% move, one of its best days in recent weeks.

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The CLARITY Act is back in the news again after Trump went on the offensive with US banks for blocking further progress
(SOURCE: TradingView)

The Battle for the Clarity Act: Trump Vs. The Banks

The immediate trigger for this confrontation is the stalled CLARITY Act. This market-structure bill, designed to reshape how digital assets are regulated in the US, passed the House last year but has hit a wall in the Senate.

Trump took to his Truth Social platform late on Tuesday to frame the delay as a national security failure:

“The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda,” Trump wrote. He argued that inaction would cede ground to China, framing the Trump crypto policy as vital to maintaining US financial dominance.

Banks are specifically opposing provisions that would allow crypto exchanges to pay yield to users holding stablecoins. Traditional finance institutions argue this could trigger a deposit flight, draining capital from retail bank crypto accounts into higher-yielding digital asset platforms.

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This follows the administration’s earlier legislative win, the Genius Act, signed in July. That law created a framework for issuers but remained silent on whether intermediaries could offer yield. The CLARITY Act aims to close that loop, and banks are scared.

EXPLORE: Best Crypto Presales to buy in 2026

Reversing Operation Choke Point

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The administration is not relying solely on legislation. The White House is actively moving to dismantle the legacy of Operation Choke Point 2.0.

This informal regulatory strategy, utilized during the previous administration under Joe Biden, pressured banks to sever ties with crypto clients under the guise of risk management.

On March 1, the OCC repealed Interpretive Letter #1179. This removed the requirement for banks to seek pre-approval before engaging in crypto activities. Yet, industry reports suggest that despite the regulatory green light, banks remain hesitant.

Trump’s latest comments signal he could be set to go on the offensive to push the CLARITY Act through once and for all. And by now, we all know what Donald wants; he seemingly gets it.

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The stakes for the industry are existential. Without reliable banking rails, crypto firms face higher operational costs and settlement risks. While the US struggles with basic access issues, other nations are integrating blockchain at the central bank level.

A similar contrast is evident globally, as the Bank of Japan explores blockchain-based reserve settlement, highlighting that traditional institutions elsewhere are adapting rather than obstructing.

As the CLARITY Act Nears, the Bitcoin Price Surges Past $70,000: What Next for BTC USD?

Bitcoin has resumed its rally, pumping more than 6% overnight and now trading at $71,200, even though sentiment across global equity markets remains risk-averse, as evidenced by falling precious metal prices.

There is a possibility that capital leaving the lagging silver market may be partially rotating into the surprisingly resilient BTC. Since the US attack on Iran, the Bitcoin price has risen by around 10%, after initially dropping to roughly $63,000 in the immediate aftermath.

At the same time, USD strength has not triggered declines in the crypto market, as it often does, potentially signaling renewed belief in crypto as a store-of-value amid growing global tensions.

BTC/USD now needs to hold above $70,000 to signal further upside. A loss here would signal weakness, and a drop back toward support at $66,000 becomes likely.

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However, holding $70,000 and a fresh injection of volume could see Bitcoin revisit its February high of $78,600. Macroeconomic news and volume are the two key indicators to watch when plotting BTC’s next move.

DISCOVER: Next Crypto to Explode in 2026

The post CLARITY Act News: Trump Administration Confronts Banks Over Crypto Banking Access appeared first on Cryptonews.

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Crypto World

Here is Why AI and Stablecoins Defy Crypto Market Weakness in 2026

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Here is Why AI and Stablecoins Defy Crypto Market Weakness in 2026

AI and stablecoin segments have outperformed the broader crypto market in 2026, with data pointing to continued usage growth despite declining prices elsewhere.

Key takeaways:

  • AI sector posts smallest loss in Q1/2026, down just 14%.

  • Stablecoin market cap hits a record $320 billion, with monthly transaction volumes at a record $1.8 trillion.

AI and stablecoin sectors buck the trend

Bitcoin (BTC) trades 18.5% lower in 2026, the total crypto market capitalization has slipped to $2.42 trillion, while most altcoins are lagging, as fear and uncertainty surrounding the US and Israel-Iran war and the Fed’s hawkishness grip the market.

Meanwhile, AI and stablecoin businesses continue to defy the trend, recording significant growth and strong fundamentals that highlight a rotation toward infrastructure over speculation.

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Related: Circle asks EU to ease crypto thresholds in proposed markets framework

For example, Circle’s USDC (USDC) supply is at $78 billion, a 220% increase since November 2023, data from Token Terminal shows

ChatGPT’s weekly active users have also grown to 900 million in March 2026 from 85 million in November 2023, a roughly 10x increase over the same period.

USDC supply and ChatGPT WAU. Source: Token Terminal

Grayscale’s Q1/2026 report reinforces this observation, revealing that the AI sector recorded the smallest loss at 14% during the first three months of the year, compared to Consumer and Culture at 31%, Smart Contract Platforms at 21%, and Currencies at 21%. 

This indicates that “investor appetite shifted away from momentum-driven and more speculative segments,” the digital-asset investment manager said, adding:

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“Despite subdued overall sentiment, capital appeared to rotate toward projects with stronger fundamentals and those aligned with key themes such as AI and tokenization.”

Returns for each sector were negative in Q1/2026. Source: Grayscale

The market capitalization of AI tokens now stands at $17.4 billion, up 30% over the last 30 days. Bittensor (TAO) and NEAR Protocol (NEAR) lead the growth, with 75% and 30% price increases, respectively, over the same period 

Market capitalization of top AI and big data tokens. Source: CoinMarketCap

Similarly, stablecoins continue to grow, with the total market capitalization hitting a record $320 billion on March 23. Tether’s USDt (USDT) maintains dominance around $184 billion, representing 57% of the total stablecoin supply.

Monthly transaction volumes hit a record $1.8 trillion in February, rivaling traditional payment rails. USDC led supply growth with an 80% month-to-month increase to a $1.26 trillion all-time high last month. 

Stablecoin market capitalization. Source: MacroMicro.me

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to fiat currencies like the US dollar, and can be hosted on multiple blockchains.

In a bear market, stablecoins serve as buying power and settlement rails, dominating trading pairs, supporting tokenized real-world assets, and enabling yield-bearing products. 

Ethereum and other chains see high transfer volumes, while institutional products from banks and fintechs integrate them for yield and treasury management. This infrastructural role persists even as speculative assets bleed.

“Structural tailwinds” drive growth convergence 

The two sectors thrive because they deliver measurable value even after speculation fades.

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“AI labs and stablecoin issuers are among the businesses with the strongest structural tailwinds of the 2020s,” Token Terminal said.

They sit at the “intersection of three distinct forces: technology, finance, and geopolitics,” with each of these drivers independently driving demand for these sectors, the crypto data provider said, adding:  

“AI drives productivity and defense capabilities, while stablecoins provide financial infrastructure for global dollar distribution.”

In an X post on Monday, Crypto trader Mando CT said AI and stablecoins are among the four dominant sectors in 2026. 

Explaining the convergence, the trader said that AI needs instant and low-fees payment systems to operate, while stablecoins are the “internet money” needed to make this happen.

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“These trends are connected,” Mando CT said, adding:

“2026 isn’t just another cycle. It’s the transition from: Speculation to Infrastructure.”

Cointelegraph reported that stablecoins could benefit from AI-driven payments by enabling easy, automatic, and rule-based transactions between entities, further driving long-term growth for both sectors.