Crypto News Today: Trump Backs Stablecoin Yield Against Banks, BTC Rebounds to $73K, Coinbase Surges 15%

Written by AffMiss Editorial · Published: 5 March 2026 · 8 min read

President Donald Trump accused US banks of sabotaging his crypto agenda in a Truth Social post on Tuesday evening. He said the GENIUS Act — the stablecoin law he signed in July 2025 — “is being threatened and undermined by the Banks” and called on Congress to pass the Clarity Act without delay.

The statement came hours after Coinbase CEO Brian Armstrong met Trump privately at the White House. Armstrong’s visit was part of ongoing negotiations between crypto firms and banks over stablecoin yield — the central dispute stalling the Clarity Act in the Senate.

What Is the Dispute About?

The GENIUS Act prohibits stablecoin issuers from paying interest directly to holders. However, it does not explicitly stop third-party platforms like Coinbase and Kraken from passing yield to users — a gap banks call a “loophole.” JPMorgan and Bank of America executives have cited a US Treasury study showing that yield-bearing stablecoins could trigger up to $6.6 trillion in deposit outflows from the banking sector. Bank of America CEO Brian Moynihan stated in January 2026 that the impact could drain 30–35% of all bank deposits.

On the same day, JPMorgan CEO Jamie Dimon argued on CNBC that firms offering stablecoin yield are “functionally operating as banks” and should face the same capital requirements, FDIC insurance obligations, and anti-money-laundering rules. Armstrong rejected that framing, predicting banks would eventually reverse course once competitive pressure from digital assets becomes unavoidable.

Legislative Timeline

The Clarity Act passed the House in July 2025 (294–134). The Senate Banking Committee postponed its markup vote indefinitely in January 2026 after Coinbase withdrew support over a proposed amendment restricting stablecoin rewards. Two White House meetings in February failed to produce a compromise. With summer recess and the 2026 midterm elections approaching, the legislative window is shrinking. Senator Cynthia Lummis reposted Trump’s message, adding: “America can’t afford to wait.”

Polymarket currently prices the Clarity Act’s likelihood of becoming law in 2026 at 74%, up from ~62% a week ago. Kalshi shows 70% odds.

Bitcoin Rebounds to $73,300 One-Month High Amid Geopolitical Chaos

BTC touched $73,300 this week — its highest level in over a month — after dropping as low as $60,062 on February 5 during the initial shock of Middle East tensions. The recovery came while traditional markets sold off: the Nasdaq fell 2.5%, gold dropped 4.3%, and European indices lost over 4%.

The rebound was fuelled by a short squeeze that liquidated overleveraged short positions and a return of institutional ETF inflows. On March 2, spot Bitcoin ETFs recorded $458 million in net inflows — one of the strongest inflow days of Q1 2026. ETF outflows have also improved: February saw just $206.5 million in outflows, down 94% from November 2025’s $3.48 billion peak.

BTC currently trades near $69,900, within a consolidation range of $66,000–$73,000. The Fear & Greed Index reads 10 (Extreme Fear) — a level that has historically marked correction floors more often than the start of prolonged bear markets. The last time sentiment was this uniformly negative was summer 2022, right before the cycle bottom at $15,500.

Strategy Buys $204 Million in Bitcoin, Holds 720,000+ BTC

Strategy (formerly MicroStrategy) purchased $204 million worth of BTC this week, bringing its total holdings above 720,000 BTC. The company now holds roughly 3.6% of all Bitcoin in circulation. Despite the aggressive accumulation, Strategy’s stock continues to face pressure as BTC trades 50% below its October 2025 all-time high of ~$126,000.

Strategy CEO Phong Le has maintained that 2026 will see increased nation-state and bank adoption of Bitcoin. The company’s average cost basis sits near $60,000 per BTC, meaning the current price range keeps the position in profit — but with a shrinking margin compared to the $90,000+ levels seen in late 2025.

Coinbase Stock Surges 15% on Trump’s Stablecoin Statement

Coinbase (COIN) shares jumped as much as 15% in midday trading on Wednesday after Trump’s Truth Social post backing stablecoin yield. The stock had been under pressure since Armstrong withdrew support for the Clarity Act’s Senate draft in January. Coinbase generated approximately $1.35 billion in stablecoin revenue in 2025, primarily through a revenue-sharing arrangement with USDC issuer Circle on interest earned from reserves.

The company supports the Fairshake super PAC, which holds over $190 million in campaign funds. Coinbase also contributed to Trump’s inaugural committee and a White House renovation fund — investments that appear to be paying political dividends as Trump directly supports the company’s core business model.

38% of Altcoins Trading Near All-Time Lows

Nearly 38% of altcoins are now trading near their all-time low levels, according to CryptoQuant analyst Darkfost. This is a deeper pullback than the period following the FTX collapse in November 2022 and marks the most severe altcoin drawdown of the current market cycle.

Bitcoin dominance held at 58.16% as of March 2026 — near cycle highs. Capital continues to rotate toward BTC and ETH, with altcoin liquidity drying up. SOL trades near $83 (down 39% from January highs), XRP at $1.37, and the broader market cap sits at approximately $2.34 trillion.

Market Outlook: Key Catalysts This Week

The Clarity Act markup is the single most important near-term catalyst. If the Senate Banking Committee advances the bill before recess, it would establish clear SEC/CFTC jurisdiction over digital assets and enable stablecoin yield for platforms like Coinbase. Combined with the CFTC’s expected guidance on perpetual futures (reported in our March 4 edition), the US regulatory framework for crypto could be substantially complete before mid-2026.

Crypto News FAQ — 5 March 2026

What is the Clarity Act and why does it matter for crypto?

The Clarity Act (Digital Asset Market Clarity Act) is a US market structure bill that assigns clear regulatory authority over crypto to the SEC and CFTC. It passed the House in July 2025 but stalled in the Senate over a dispute about whether crypto platforms can offer yield on stablecoins. If passed, it would provide the regulatory clarity needed for large-scale institutional participation in digital assets.

Why did Trump attack banks over stablecoins?

Banks are lobbying to ban crypto platforms from offering yield on stablecoin holdings, arguing it could drain up to $6.6 trillion in deposits. Trump sided with crypto firms, saying “Americans should earn more money on their money” and accusing banks of undermining the GENIUS Act he signed in July 2025. The dispute is the main obstacle to passing the Clarity Act.

Why is the Fear & Greed Index at 10?

The index reflects extreme bearish sentiment driven by BTC trading 50% below its October 2025 all-time high, geopolitical tensions in the Middle East, Trump’s tariff policies, and net ETF outflows earlier in the year. Historically, Extreme Fear readings of this magnitude have marked correction floors — not the start of prolonged bear markets. The last comparable reading was summer 2022, weeks before the cycle bottom.

How much Bitcoin does Strategy own?

Strategy (formerly MicroStrategy) holds over 720,000 BTC — approximately 3.6% of all Bitcoin in circulation. The company’s latest purchase was $204 million this week. Their average cost basis is near $60,000 per BTC.