Archive · 17 Dec 2025
Crypto's Growing Threat to Traditional Banks
Crypto and traditional banks are both doing well, but they are starting to fight over who gets to be in charge.
The crypto industry has gained more power because of new laws and has a lot of money to influence elections.
Banks are worried because crypto is trying to do some of the same things banks do, like offering rewards to customers.
Banks used to be the most important financial group in the Republican Party, but now crypto is taking that spot.
This means banks might not always win when they argue with crypto companies.
It's like a big game where the rules are changing, and banks are not sure they can keep up.
Crypto industry has gained ground due to legal certainty from the GENIUS Act.
Bank stocks have risen 35% since Trump's election, but banks are losing political influence.
Stablecoin regulation is a major concern, with banks wanting to close loopholes that allow rewards.
Crypto firms believe banks' preferential treatment creates an unequal playing field.
Banks are now relying on Democratic senators and left-leaning groups to oppose crypto firms getting banking licenses.
- Who
- Crypto industry and traditional banks
- What
- Growing tension and competition between crypto and traditional banking
- When
- Ongoing, with recent developments in 2023
- Where
- United States
- Why
- Crypto's increasing political and regulatory influence threatens banks' traditional dominance
- Stablecoin Regulation
- GENIUS Act prohibits stablecoins from offering yields
- Bank Stocks
- Climbed 35% since Trump's election
- Crypto Political Action Committees
- Hundreds of millions in cash for 2026 elections
- Bank Trust Charters
- Approved for five digital-finance firms on December 12th
- Federal Reserve Governor
- Christopher Waller suggested more firms might access central bank’s payment rails