TD Cowen: Trump's social media statements are unlikely to advance the encryption bill.

Investment bank TD Cowen stated that while President Trump's recent call on social media for the banking and crypto industries to reach an agreement on the CLARITY Act (Clarity for Digital Asset Markets Act) is positive, it is insufficient to break the current legislative deadlock. Jaret Seiberg, Managing Director of TD Cowen's Washington Research Department, noted in a report that while Trump's frequent use of social media has limited practical impact on policy progress, individual posts require direct presidential involvement in negotiations between the banking and crypto industries to advance crypto market structure legislation. Seiberg believes that simply expressing positions through social media is unlikely to lead to a legislative breakthrough, and a real solution may require Trump to personally convene negotiations with all relevant parties. However, he also pointed out that given the current armed conflict between the US and Iran, the likelihood of Trump directly intervening in negotiations in the short term is low. Previously, Trump stated on Truth Social that the banking industry should reach a "reasonable agreement" with the crypto industry and should not oppose provisions allowing crypto platforms to offer yields to stablecoins, in order to push Congress to pass crypto market structure legislation as soon as possible. He also pointed out that the GENIUS Act, the stablecoin regulatory bill passed last year, is being "threatened and weakened" by the banking industry.