Crypto Plumbing, Policy Improved in 2025, but Prices 'Did Not Cooperate'

Interactive Brokers announced on Thursday that it is enabling eligible global clients to fund their brokerage accounts with stablecoins. This functionality was introduced last month and allows clients to deposit funds and begin trading across 170 markets. The move reflects broader efforts by traditional financial firms to integrate digital assets into existing frameworks according to reports.

The Bank of America CEO, Brian Moynihan, warned that up to $6 trillion in U.S. bank deposits could migrate to stablecoins if Congress does not restrict interest-bearing structures. He attributed this projection to U.S. Treasury Department studies and emphasized the potential threat to banks' lending capacity and deposit spreads according to analysis.

Why Did This Happen?

Legislative efforts to regulate interest-bearing stablecoins have become a focal point for both traditional financial institutions and crypto companies. The Senate Banking Committee, led by Tim Scott, released a bill that bans passive interest on stablecoins but allows activity-based rewards. This distinction aims to preserve incentives for staking or liquidity provision while curbing the risk of destabilizing traditional banking according to reports.

Industry players have reacted with mixed responses. Coinbase CEO Brian Armstrong announced that the company could not support the latest version of the bill, citing concerns over its impact on stablecoin yields. The bill has also drawn criticism from other firms, who argue that it could drive crypto activity offshore according to analysis.

How Did Markets React?

Bitcoin prices have shown a mixed response to these regulatory developments. While institutional buying has stabilized, the market is in a transition phase following heavy selling at the end of 2025. Long-term investors are holding onto positions more firmly, and the overall market structure appears poised for a potential upswing according to data.

Technical analysis suggests that Bitcoin has formed a higher high before a drop in the Asian session. If this pattern continues, a breakout above key resistance levels could trigger a significant price rally. However, the market remains sensitive to regulatory developments and macroeconomic trends according to analysis.

What Are Analysts Watching Next?

The delay of the Senate Banking Committee's markup has heightened uncertainty for both crypto companies and banks. The proposed bill's restrictions on stablecoin yields are particularly contentious, with concerns over clarity in the language of permitted rewards. Fireblocks and TRM Labs have highlighted the importance of a clear regulatory framework to maintain the U.S.'s competitive position in the global digital asset market according to industry reports.

Analysts are also watching whether the bill will include broader ethics provisions and expanded financial surveillance powers for the Treasury Department. These elements have raised alarms among lawmakers and industry stakeholders, with some arguing that the bill could mirror the expansive reach of the USA PATRIOT Act according to analysis.

The ongoing negotiations have already prompted one major industry player, Coinbase, to withdraw its support for the bill. This move underscores the high stakes involved and the potential for further shifts in the regulatory landscape. With the Senate clock running down, the outcome of these discussions will likely shape the future trajectory of the U.S. crypto market according to reports.