Coinbase CEO Brian Armstrong says big banks are “undermining” President Trump’s crypto agenda by pushing CLARITY Act language that would ban 4–5% stablecoin yields now fueling Coinbase’s $1.35b revenue line.

In a Fox Business interview, Coinbase CEO Brian Armstrong accused major U.S. banks of “trying to undermine the president’s crypto agenda” by pushing to strip Americans of the ability to earn yield on stablecoins. He described the latest Senate draft as a “giveaway to the banks” that would “ban their competition” by shutting down yield on digital dollars. Armstrong argued banks are “taking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits.”

Under the 2025 GENIUS Act, stablecoin issuers must fully back tokens with cash or short-term Treasuries and are barred from paying interest directly, but exchanges like Coinbase have been allowed to pass on roughly 4–5% Treasury returns to customers via rewards programs. A new CLARITY Act compromise circulating in Washington would prohibit stablecoin yield “directly, indirectly, and through anything economically or functionally equivalent to bank interest,” while allowing only activity-based rewards. Coinbase has told senators it “cannot support” the current text.

Trump’s Support and the Banking Lobby’s Fears

President Donald Trump has publicly sided with crypto firms, accusing banks on Truth Social of “threatening and undermining” the GENIUS Act and “holding the CLARITY Act hostage” over stablecoin yield. “Americans should earn money on their money,” Trump wrote, urging Congress to move the market-structure bill “ASAP.” According to reporting from Bloomberg, banks have cited Treasury studies suggesting they could lose up to hundreds of billions in deposits if stablecoin yields are permitted, warning this could pressure smaller institutions and weaken loan funding.

The numbers at stake explain the intensity. Coinbase generated about $1.35 billion in stablecoin revenue in 2025, roughly 19% of its total, driven largely by interest on USDC reserves backed by U.S. Treasuries. Total stablecoin volume reached an estimated $33 trillion last year, with USDC accounting for around $18.3 trillion of that flow. Analysts at Bloomberg Intelligence have projected that if USDC payment adoption accelerates, Coinbase’s stablecoin revenue could grow two- to sevenfold from its 2025 base.

For now, the yield fight has become the fulcrum of U.S. crypto policy: banks lobbying to close what they call a “loophole,” crypto platforms lobbying to preserve a core revenue line and a 4–5% return for users. With Trump publicly pressuring banks and Armstrong warning of “regulatory capture,” the eventual shape of the GENIUS–CLARITY framework will determine whether stablecoins remain a high-yield alternative to bank deposits or revert to being low-yield digital cash.

Tether is moving toward deeper financial transparency with a landmark step: hiring KPMG for its first full audit of USDT’s financial statements, while PwC assists in strengthening internal systems. The Financial Times reported the move, noting that the audit will extend beyond reserve snapshots and aim to cover the company’s assets, liabilities, and internal controls. This development follows Tether’s earlier pledge to enlist a Big Four firm for an inaugural financial statement audit, and it arrives as the company weighs broader ambitions in the US market amid evolving stablecoin regulation.

USDT remains the largest stablecoin by market capitalization, with about $185 billion in circulation. Tether disclosed in January that it held more than $122 billion in direct U.S. Treasury securities and about $141 billion in total Treasury exposure, including related instruments such as overnight reverse repurchase agreements. This backdrop helps frame why a comprehensive audit—beyond reserve attestations—could be pivotal for market confidence as the sector contends with regulatory scrutiny and evolving frameworks.

Related: Financial Times coverage highlights that Tether’s engagement with a Big Four firm for its inaugural financial statement audit marks a notable shift in its disclosure posture, following years of relying on reserve attestations from BDO Italia. Tether has publicly billed the forthcoming audit as “the biggest ever inaugural audit in the history of financial markets.”

The backdrop to the audit move includes ongoing corporate funding conversations and regulatory considerations. Reports last year suggested Tether was exploring a substantial equity raise, potentially up to $20 billion, which would imply a significant valuation. Tether’s leadership has disputed specific figures while continuing to point to a broader valuation target around $500 billion, anchored in earnings and market position. This context underscores why independent verification could be influential for both investors and regulators as the company presses ahead with its growth strategy.

Key takeaways

• First full audit under way: Tether has engaged KPMG to conduct its inaugural complete audit, with PwC assisting in enhancing internal controls and systems. The engagement follows years of reserve attestations and no disclosed audit timeline.
• Audit scope expanded beyond reserves: The KPMG engagement is expected to examine the full balance sheet—assets, liabilities, and internal controls—in addition to reserves, a move described by Tether as raising the standard for the digital-asset economy.
• Big Four selection and process: The choice of a Big Four firm came after a competitive process, and Tether notes it already operates to Big Four audit standards, though no completion date has been announced.
• Historical scrutiny and settlements: Tether has faced regulatory action in the past, including a $41 million CFTC fine and an $18.5 million settlement with the New York Attorney General, tied to reserve disclosures and investor disclosures. The NYAG agreement requires quarterly reserve reporting for two years.
• Market and regulatory context: USDT remains dominant with about $185 billion in circulation. The wider regulatory landscape, including the GENIUS Act, adds urgency to transparent, auditable reserve practices as policymakers weigh a federal framework for stablecoins.

Audit momentum and the broader implications

The decision to bring in KPMG for a full-scope audit signals a notable pivot toward verifiable governance for USDT. While previous attestations from BDO Italia provided periodic oversight of reserves, a full financial statement audit would offer a comprehensive view of Tether’s balance sheet and internal controls. By aligning with KPMG and leveraging PwC’s internal systems work, Tether appears intent on elevating both external credibility and internal risk management ahead of strategic moves in the U.S. market.

From an investor and user perspective, the audit could help address lingering questions about reserve composition, liquidity cushions, and the overall health of the issuer’s treasury management. In a market where stablecoins have become central to liquidity and trading, independent, auditable financial statements may influence counterparties’ risk pricing, collateral arrangements, and regulatory discussions. The timing also matters as stablecoin policy moves forward in Washington, with proposals like the GENIUS Act aiming to establish a clear federal framework for stablecoins and stablecoin issuers.

Beyond the audit itself, Tether’s broader financing ambitions—reported in earlier coverage as a potential equity raise—add another layer of complexity. While CEO Paulo Ardoino has pushed back on specific figures, the prospect of large-scale fundraising underscores the need for transparent financial reporting to support a higher enterprise valuation and broader investor appetite. Past enforcement actions, including a CFTC settlement and NYAG settlement, have already shaped public expectations around reserve management and disclosure discipline, making independent verification even more consequential for market trust.

Industry observers will be watching whether the audit timeline is announced and how the resulting financial statements address questions that have persisted since USDT’s early days. The intersection of rigorous audit standards with an evolving regulatory regime could set the tone for how stablecoins are funded, backed, and governed as they scale and compete for a larger share of the global payments and liquidity infrastructure.

As the process unfolds, readers should monitor the progress and the eventual release of the full audit results, alongside any updates from Tether on internal-control enhancements and related governance reforms. The coming quarters could reveal whether independent, multipoint verification translates into tangible improvements in transparency, resilience, and regulatory clarity for the stablecoin sector.

Sources consulted for context include coverage from the Financial Times detailing the audit mandate and the Big Four engagement, as well as prior Cointelegraph reporting on Tether’s audit strategy, past settlements, and the broader regulatory environment shaping stablecoins in the United States. For readers seeking deeper background, see the Financial Times article and related coverage linked above.

Five years have passed since Michael Saylor’s possibly home-destroying advice about using a mortgage to keep a hold of bitcoin (BTC).

As of this week, the US government-sponsored mortgage system will finally allow Saylor’s acolytes and other BTC owners to belatedly follow this advice.

When Saylor originally told an audience to mortgage their houses to buy BTC on March 10, 2021, BTC was trading near $56,000. If anyone actually took that advice, by November of the following year, BTC had cratered 72% to $15,500.

As a result, and given the high collateralization requirements of BTC-backed loans at that time, they would have likely lost their house — unless they had access to additional assets to re-collateralize their loan.

On Thursday, Coinbase and its Better Home & Finance partner announced their first crypto-backed mortgage that conforms to Fannie Mae standards. 

Coinbase’s first BTC-backed mortgage

Like Freddie Mac, Fannie Mae is a government-sponsored enterprise (GSE) under conservatorship of the US Federal Housing Finance Agency. The net worth of GSEs are periodically swept to the US Treasury.

A “conforming mortgage” is a standardized loan that enjoys interest rate subsidies from GSEs and can be easily packaged together with other, similar loans and re-hypothecated across Wall Street.

Borrowers receive two loans. The first is a standard, USD Fannie Mae mortgage on the home. The second, secured by the borrowers’ BTC or USDC, covers the initial down payment. Only two digital assets, BTC and Coinbase’s USDC, qualify at launch.

Incredibly, borrowers receive just 40% of the market price of BTC for its pledge as collateral. In other words, a borrower must lock up $250,000 in BTC to cover a $100,000 down payment.

USDC, a stablecoin that has traded in a somewhat narrower range between roughly $0.86 and $1.10 against USD on Kraken, gets a more generous 80% credit.

Customers reliquish private key control to their crypto, holding it in custody at Better’s Coinbase Prime account for the life of the mortgage loan.

Bill Pulte’s BTC mortgage pipeline

Federal Housing Finance Agency (FHFA) Director William “Bill” Pulte ordered Fannie Mae and Freddie Mac on June 25, 2025 to prepare to count cryptocurrency as a qualifying mortgage asset.

This product is the direct result of his initiative.

Pulte is a quintessential trust fund kid, the 37-year-old grandson of the billionaire PulteGroup founder. He made his name through Twitter philanthropy engagement farming, giving away cash to strangers on social media.

His Twitter antics earned him a retweet from Donald Trump in 2019, and eventually a nomination to run the FHFA. 

His family’s charitable foundation has publicly distanced itself from him, and PulteGroup’s board removed him from his decision-making role.

Pulte’s financial disclosures list up to $1 million in BTC, similar holdings in Solana tokens, and $5-25 million in Mara Holdings, a BTC mining company. 

After Trump’s nomination, he installed himself as chairman of both Fannie Mae and Freddie Mac boards, stacked them with allies, and then ordered the very crypto underwriting rules from which his BTC portfolio stands to benefit.

This time, at 60% LTV, no margin calls

Coinbase immediately highlighted the technicality that this BTC-backed mortgage features, after an initial 60% haircut on its market value, no further margin calls or collateral top-ups. 

If BTC drops 50%, the borrower owes nothing extra as long as the pre-agreed USD payments continue. The borrower pays interest on two loans, not one, and the non-crypto backed USD mortgage is entirely USD denominated from the start.

The pledged crypto cannot be traded. Coinbase’s partner returns it only after the mortgage is fully repaid. 

If the borrower falls 60 days behind on payments, Better can liquidate the BTC and/or USDC. 

Foreclosure on the home begins at 180 days.

Bitcoin (BTC) neared $66,000 at Friday’s Wall Street open as analysis called US inflation trends “objectively unsustainable.”

Key points:

• Bitcoin drops further on oil-supply woes as Iran closes the Strait of Hormuz.

• BTC price performance is set to seal its sixth straight month of losses at the March close.

• Traders eye the lows with $70,000 back as resistance.

Oil squeeze creates US bond-market havoc

Data from TradingView captured ongoing BTC price losses, which approached 4% on the day and threatened to turn March into Bitcoin’s sixth consecutive “red” month.

Macro headlines drove weakness across risk assets. US stocks opened downward after Iran closed the Strait of Hormuz, sharpening nerves over global oil supplies.

With the US-Iran war set to extend into April, markets showed stress everywhere — including US bonds.

“The US bond market is in major trouble today,” trading resource The Kobeissi Letter warned in a post on X.

Kobeissi noted that the 10-year Treasury note was now at its highest levels since the war began, creating a major headache for the Federal Reserve as it tries to tame inflation as labor-market conditions worsen.

“In less than one month, markets have gone from discussing rate cuts to rate hikes, with the base case showing a Fed PAUSE for the next 18 months,” it continued. 

“Keep in mind, the Fed was cutting interest rates because the labor market was weak, and it remains weak. However, inflation expectations have just become an even bigger problem than the labor market. This is objectively unsustainable.”

As Cointelegraph reported, oil prices have a pronounced impact on US inflation trends, while markets have also raised expectations of recession hitting in 2026.

“Inflation expectations have become so bad that the market is trading like an emergency Fed rate hike is imminent,” Kobeissi founder Adam Kobeissi added.

Bitcoin price resistance settles in at $70,000

Among Bitcoin traders, the mood was just as wary as BTC/USD circled its lowest levels in three weeks.

Related: Bitcoin value ‘off the chart’ as BTC price metric hits record lows in 2026

Analyzing four-hour time frames, Telegram trading resource Technical Crypto Analyst predicted a “likely” return to $64,000 next.

“BTC has clearly broken its ascending trendline and is now showing lower highs under the 70–72K supply, confirming a short-term bearish shift; with price losing the 68K support, continuation toward the 64–65K demand zone is likely, and only a reclaim above 70K would invalidate the bearish momentum,” it told subscribers.

Data from CoinGlass revealed the high stakes for price into the March monthly close, with BTC/USD readying its first six straight months of losses since the end of its 2018 bear market.

“Indeed seeing the market derisking into the weekend as expected and as we’ve been seeing several weeks now,” trader Daan Crypto Trades continued. 

“Eyes on that $65.6K low from last week Monday. Main area to watch for me will be the range low. Seeing there’s still quite a bit of liquidity around that area.”