On January 29, news reports indicate that cryptocurrency political funding is profoundly influencing the direction of U.S. policy. With less than a year until the midterm elections, the crypto industry has accumulated approximately $193 million in political funds. This force is pushing the White House to re-engage in digital asset legislative negotiations, with stablecoin regulation and crypto market structure becoming core focal points.
The Crypto Political Action Committee Fairshake stated that its funding has nearly reached the total amount from the previous election cycle. Major support has been provided by Ripple, a16z, and the United States’ largest compliant CEX. The organization will continue to support candidates who favor the crypto industry and pressure opponents. Although funds have not yet been fully deployed, political influence is already evident.
Legislatively, the CLARITY Act, due to its stablecoin yield provisions, has caused disagreements between crypto companies and traditional banks and was forced to be shelved earlier this month. Subsequently, the White House directly intervened, with the Trump administration’s crypto policy team convening senior executives from both sides to seek a compromise. Several industry associations have confirmed their attendance.
The banking sector strongly opposes the bill. Geoff Kendrick warned that if stablecoins grow to a $2 trillion scale, global bank deposits could lose up to $1.5 trillion within a few years. Currently, the market cap of USD stablecoins exceeds $300 billion, with funds continuously shifting from the banking system to on-chain assets. Brian Moynihan further pointed out that in the long term, up to $6 trillion in bank deposits could transfer into stablecoins.
More critically, these funds are not flowing back into the banking system. Reserves of Tether and Circle are mainly invested in government bonds and similar instruments, with a very low proportion remaining as deposits in banks, putting greater pressure on regional banks.
The core controversy lies in whether stablecoin issuers should be allowed to offer yields on tokens. Banks fear this will accelerate deposit outflows, while crypto companies argue that restricting reward mechanisms will hinder innovation and institutional adoption.
The White House’s intervention at this point aims both to break the legislative deadlock and to respond to election pressures. The $193 million is not only political funding but also a symbol of the crypto industry’s influence. The game over stablecoin regulation, U.S. crypto policy, and digital asset legislation is entering a new phase.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Tether buys Antalpha’s shares for an 8.2% stake; the chairman has voting and disposal rights
According to the Schedule 13D filing submitted to the U.S. Securities and Exchange Commission (SEC) on April 20, Tether holds 1,950,000 shares of the Bitcoin mining financial platform Antalpha through affiliated entities, representing a 8.2% ownership stake. Tether chairman Giancarlo Devasini has voting and disposition rights over the aforementioned shares.
MarketWhisper1h ago
Tether Backs Abu Dhabi Tokenization Startup Kaio With $8M Investment
Kaio, a tokenization firm in Abu Dhabi, raised $8 million from Tether and other investors to enhance blockchain asset distribution. With a total of $19 million, it manages around $100 million and plans to launch an on-chain fund with Mubadala Capital.
GateNews2h ago
KAIO Raises $8M in Strategic Funding Led by Tether
KAIO, a tokenization firm regulated in Abu Dhabi, secured $8 million in funding led by Tether, bringing total funding to $19 million. The company offers blockchain infrastructure for asset management and aims to expand into new products, managing about $100 million in assets.
GateNews13h ago
Tether Holds 8.2% Stake in Bitcoin Mining Finance Firm Antalpha Following $49.3M IPO
Tether and CEO Giancarlo Devasini own 1.95 million shares (8.2%) in Bitcoin mining finance company Antalpha, which raised $49.3 million in its IPO. Antalpha offers Bitcoin-collateralized lending and has a $1.6 billion loan portfolio.
GateNews13h ago
BIS calls for globally coordinated stablecoin regulation: warns that Tether and Circle account for 85% of those showing “security-like characteristics”
The Bank for International Settlements (BIS) once again emphasized the importance of global stablecoin regulatory coordination, pointing out three major risks that stablecoins face at this stage, including regulatory challenges related to cross-border flows and issues with market concentration. BIS proposed a unified ledger framework and argued that central banks need to lead the development of digital currencies, which would pose challenges to existing stablecoin issuers such as Tether and Circle. Overall, in the future, stablecoins may face a more stringent regulatory framework.
ChainNewsAbmedia18h ago
Tether: USDT transfer resumed, suspension during the rsETH incident investigation has been lifted
Tether and the LayerZero team’s all-chain stablecoin project USDT0 posted on the X platform on April 20. The USDT0 transfer function has been restored to normal, and overall system integrity has not been affected. There has been no change in risk exposure, and all transactions in progress prior to the suspension have been settled. Previously, USDT0, for precautionary purposes, paused the USDT0 OFT cross-chain bridge infrastructure during the rsETH incident investigation.
MarketWhisper21h ago
