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President Donald Trump is accusing banks of trying to derail his administration’s push for crypto reform after talks over landmark digital assets legislation hit a new snag in Washington.
“We will not allow them to undermine our powerful crypto agenda,” Trump wrote in a March 3 post on Real Social, criticizing banks that he says are trying to weaken legislation aimed at regulating the digital asset industry (1).
Talks stalled after banks pushed back against regulations that could have allowed crypto companies to offer rewards in stablecoins and other digital products. They warn that this could take deposits away from the traditional banking system.
Analysts at Standard Chartered estimate that stablecoins, or cryptocurrencies tied to fiat currencies, could take up to $500 billion out of US bank deposits by 2028 (2). This will reduce the pool of funds that banks rely on to lend to customers.
The dispute centers on the Clarity Act, a bill designed to create clearer federal regulations for crypto markets. Supporters say the legislation will provide long-awaited regulatory certainty for an industry that has operated in a gray area for years (3).
Here’s what’s happening, and how you can support your portfolio if the crypto market crashes.
At the center of the debate is a simple concern: Stablecoins compete directly with bank deposits, which are the lifeblood of the lending system.
Stablecoins are digital tokens that are usually pegged to the US dollar and are designed to maintain a stable value. Last year, on July 18, Trump signed into law the National Initiative for Guidance and Establishment for Stablecoins in the United States (GENIUS) Act, which created a framework for stablecoin regulation.
Crypto companies have argued that offering rewards or incentives can help them attract users.
On the other side of the fence, lenders warn that the rewarding Stalkcoin could encourage consumers to move their savings out of bank accounts and into digital wallets. Importantly, under the GENIUS Act, stablecoins are not considered bank deposits and therefore not FDIC insured, according to an analysis by Brookings (4).
This concern has become an important point in recent negotiations.
“The Genius Act is being threatened and undermined by the banks,” Trump wrote in the same True Social post. “This is unacceptable – we will not allow it.”
Trump argued that the United States should move quickly to pass crypto legislation to avoid losing the industry to other countries.
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Even before the banking controversy, the law faced significant political hurdles.
The bill still needs bipartisan support in the Senate, where at least seven Democrats would need to support the measure for it to pass.
Some legislators, such as Elizabeth Warren, have linked to elected officials their concerns about ethics provisions and potential conflicts that benefit crypto companies (5).
Time may also work against the bill.
With lawmakers gearing up for midterm election campaigns later this year, the window to pass major legislation is quickly shrinking.
“If it’s not passed and it’s put on the president’s desk in July, I think everyone’s going to feel like the window is going to be closed because of the midterms,” Adrian Wall, managing director of the Digital Governance Alliance, told Reuters.
“The calendar is the enemy of this law,” Brian Gardner, chief Washington strategist at Stifel, wrote in a March 3, 2026, note.
While lawmakers debate how to regulate digital assets, investors still have to decide how much risk they are willing to take.
Crypto markets are notoriously volatile, and regulatory uncertainty can add another layer of unpredictability.
Even if crypto reform stalls in Washington, investors should not sit on the sidelines. Many financial advisors recommend balancing speculative assets like crypto with diversified investments that can grow steadily over time.
Here are a few ways investors can create a balanced strategy.
One of the simplest ways to manage risk in uncertain markets is diversification.
Instead of putting all your money into one asset class, diversification spreads your investments across multiple sectors and asset types. Thus, a decline in one market does not necessarily wipe out your entire portfolio.
For long-term investors, exchange-traded funds (ETFs) have become one of the most popular ways to achieve diversification. ETFs allow you to buy stocks, bonds or other assets with a single investment, making it easy to build a balanced portfolio without picking individual winners.
The beauty of ETF investing is its accessibility – anyone, regardless of wealth, can benefit. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: Link your cards, and Acorns will round up every purchase to the nearest dollar, investing the difference — your spare change — in a diversified portfolio.
With Acorns, you can invest in a dividend ETF with as little as $5 – and, if you sign up today with regular monthly deposits, Acorns will add a $20 bonus to help you start your investment journey.
Diversified ETFs can help investors gain broad market exposure, but some people prefer a more hands-off approach.
For investors who want more control over their portfolio, opening a brokerage account can open up a wide range of opportunities.
Brokerage platforms allow you to directly buy individual stocks, ETFs and other securities. This makes it easy to tailor your portfolio to your goals, values and risk tolerance.
Platforms like Robinhood are designed to make investing easy and accessible.
If you prefer a more hands-on approach, you can also trade individual stocks, fractional shares and options (for qualified traders) – backed by 24/7 support. Stocks, ETFs and their option trades are commission-free.
With access to popular ETFs like the Vanguard S&P 500, you can build diversified exposure without having to pick individual stocks.
The platform offers both a traditional IRA and a Roth IRA, so you can choose a tax strategy that fits your retirement plan.
With its recurring investment feature, you can set up automatic investments in your favorite sub-shares, stocks and ETFs on your schedule.
Over time, it helps you get used to investing and steadily grow your portfolio.
Earn up to 3% on eligible account transfers through March 25 to a taxable Robin Hood account. Risks and conditions apply. Robinhood Gold ($5/mo) subscription may apply.
Even experienced investors struggle to keep up with the constant stream of financial news, economic data and company reports.
This is why many investors rely on research services to help them identify potential opportunities and understand market trends. These platforms analyze financial data, track market movements and provide insights that can help investors make informed decisions.
For people who don’t have time to sift through income reports or financial files, scheduled research can simplify the process.
Mobi provides expert research and recommendations to help you identify solid, long-term investments backed by the advice of veteran hedge fund analysts.
Over four years, and over nearly 400 stock picks, their recommendations beat the S&P 500 by an average of nearly 12%. They also offer a 30-day money-back guarantee.
Mobi’s team spends hundreds of hours sifting through financial news and data to bring you stock and crypto reports delivered directly to you. Their research keeps you up to date on market changes, and can help you reduce the guesswork behind choosing stocks and ETFs.
Plus, their reports are easy to understand for beginners, so you can become a smart investor in just five minutes.
Even the best investment tools are only part of the equation.
Building lasting wealth usually requires a comprehensive strategy — one that takes into account your income, spending habits, retirement goals and tolerance for market risk.
Building a strong financial future isn’t just about choosing the right investments; It’s about having a clear plan for how your money works together.
This includes understanding how much risk you are willing to take, how your investments align with your long-term goals and whether your savings strategy can withstand market volatility.
For many people, getting professional guidance can make this process easier.
That’s where Advisor.com comes in. The platform connects you with a specialist near you for free.
Advisor.com does the heavy lifting for you, evaluating advisors based on track record, client ratio and regulatory background. Additionally, their network includes trustees, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert who best fits your needs based on your specific financial goals and preferences.
Finding the right advisor isn’t always easy – there’s no one-size-fits-all solution. That’s why Advisor.com allows you to set up free initial consultations with no obligation to hire to see if they’re right for you.
Once you’ve got the right financial advisor in your corner, the next step is to get a clear picture of where your money is really going. It starts with the basics – budgeting and tracking your expenses.
The outcome of the crypto law is uncertain, and the political window for its passage may be closing.
But for investors, the basic principle remains the same: Planning can help you weather tough times, whether they come from the market, technology, or Washington.
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@realDonaldTrump (1); Reuters (2); Reuters (3); Brookings (4); CNBC (5)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
