Trump Pledges Pro-Crypto Frameworks as Senator Schiff's 'COIN Act' Targets Officials' Crypto Dealings

According to @FoxNews, former President Donald Trump reiterated his pro-crypto stance at a Coinbase summit, promising his administration would work towards "clear and simple" market frameworks for digital assets. Trump also referenced his support for the GENIUS Act for stablecoins and claimed to have created a US Strategic Bitcoin Reserve, though this has not been actualized. This pro-crypto positioning contrasts with new legislative efforts from Democrats. Senator Adam Schiff, despite being considered a crypto ally, has introduced the 'COIN Act' to prohibit the president and other senior officials from issuing or sponsoring digital assets, citing ethical concerns over Trump's family profiting from crypto ventures. This bill is one of several similar proposals from Democrats, though they are unlikely to pass the Republican-controlled Congress. This political uncertainty unfolds as the crypto market experiences a downturn, with provided data showing Bitcoin (BTC) trading at $105,676 (-1.75%) and Ethereum (ETH) at $2,409 (-4.46%), while altcoins like Solana (SOL) and Cardano (ADA) have seen steeper drops of over 7%.
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The cryptocurrency market is navigating a complex landscape defined by both burgeoning political support and persistent regulatory headwinds, creating a volatile environment for traders. Recent developments in Washington underscore this dichotomy. President Donald Trump has amplified his pro-crypto rhetoric, stating in a recorded message at a Coinbase summit his administration will work toward "clear and simple market frameworks." He emphasized his commitment to making America a dominant force in the crypto and Bitcoin space, referencing the GENIUS Act for stablecoins and a proposed US Strategic Bitcoin Reserve. This narrative of top-level support provides a powerful tailwind for market sentiment, suggesting a friendlier regulatory future that could unlock significant institutional capital.
However, this optimism is tempered by legislative friction. Even as some Democrats show a willingness to engage, as seen with the 18 Democratic votes for the stablecoin bill, significant opposition remains. Senator Adam Schiff, despite being seen as a crypto ally with an 'A' grade from Stand With Crypto, introduced the COIN Act. This bill aims to prevent high-ranking officials, including the president, from issuing or sponsoring digital assets, citing ethical concerns over Trump's own family's disclosed profits from crypto ventures. This legislative push, echoed by other Democrats like Representative Ritchie Torres, highlights a deep-seated distrust that could stall or complicate the passage of comprehensive market structure bills. For traders, this political tug-of-war translates directly into headline risk and potential policy-driven volatility. Positive developments could send prices soaring, while restrictive proposals could trigger sharp sell-offs.
Market Reacts with Broad-Based Sell-Off Amid Uncertainty
While politicians debate the future, current market data reveals a decidedly bearish short-term picture. Bitcoin (BTC) is exhibiting signs of weakness, with the BTC/USDT pair trading at $105,676.46, down 1.75% over the last 24 hours. More critically, the price is hovering just above its 24-hour low of $105,329.35, indicating that sellers are in control. The 24-hour high of $107,709.04 now acts as a key short-term resistance level. A failure to reclaim the $106,000 level could see BTC retest and potentially break the recent low, opening the door for a deeper correction. The relatively low 24-hour volume of 9.37 BTC on this pair suggests a lack of strong buying conviction at these levels.
Altcoins Suffer Deeper Losses as ETH and SOL Lead the Downturn
The downturn is even more pronounced in the altcoin market, a classic sign of waning risk appetite. Ethereum (ETH) has shed 4.46% to trade at $2,409.05 against USDT, breaking below the psychological $2,500 support and approaching its 24-hour low of $2,397.75. The ETH/BTC pair is also down 1.32% to 0.02303, showing that Ethereum is underperforming Bitcoin. High-beta altcoins are facing even greater pressure. Solana (SOL) has plunged 7.04% to $146.18, and Cardano (ADA) is down a steep 7.81% to $0.5402. Both are testing their respective 24-hour lows, with SOL at $145.03 and ADA at $0.5362. The SOL/BTC pair’s 6.17% drop further confirms that capital is rotating out of riskier assets and into the relative safety of Bitcoin, or out of the market entirely. One notable exception is Avalanche (AVAX), with the AVAX/BTC pair showing a strong 6.73% gain, suggesting some idiosyncratic strength or a specific catalyst driving its performance against the broader market trend.
This market-wide retreat underscores the fragile state of investor confidence. While long-term narratives driven by figures like Trump and the potential for clearer regulation, as championed by Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire, offer hope, the immediate price action is dictated by fear and uncertainty. Traders should remain cautious, paying close attention to key support levels across major assets. A bounce led by Bitcoin regaining the $107,000 mark could provide a short-term relief rally for altcoins. Conversely, a continued slide could see assets like SOL and ADA test lower support zones, potentially offering strategic entry points for long-term believers or scalp opportunities for nimble traders. The divergence of AVAX also warrants attention, as it may signal where pockets of strength lie in a turbulent market.
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