US traders are on edge as President Donald Trump’s tariff war threatens to spark a “crisis scenario” for the bitcoin price. The US Treasury Secretary has surprised endorsed bitcoin, while BlackRock’s CEO warns of a near-$1 trillion impact on the US dollar.
Wall Street banks are bracing for an “existential” crisis if Trump pushes forward with radical new legislation. A stablecoin bill is being pushed through Congress, which could see interest paid out to people holding dollar-pegged cryptocurrencies. This has raised concerns that taxpayers could be on the hook.
The stablecoin market has grown rapidly in recent years, led by Tether’s $144 billion USDT. Financial technology companies and Wall Street giants are rushing to launch their own stablecoins, enticed by the massive profit from backing various financial instruments.
Industry experts predict a stablecoin will become a “de facto checking account tool” for both banks and crypto companies. However, lawmakers must decide whether stablecoins will benefit one industry over another. Coinbase CEO Brian Armstrong argues that banks and crypto companies should be incentivized to share interest with consumers.
Trump’s tariff war has sent bitcoin prices soaring, outperforming stocks. The US Treasury Secretary’s surprise endorsement has added to the market’s volatility. As Congress weighs the fate of stablecoins, traders are left wondering what this means for their investments.
Source: https://www.forbes.com/sites/digital-assets/2025/04/06/existential-threat-wall-street-suddenly-braced-for-a-bitcoin-and-crypto-price-game-changer