TD Cowen said a US digital asset market structure bill is unlikely to advance without President Donald Trump’s direct involvement, citing unresolved industry disputes and a difficult path to winning Senate Democratic support.
Why TD Cowen says Trump must intervene
Jaret Seiberg, a managing director at TD Cowen’s Washington Research Group, wrote in a Monday note that Trump may need to personally push banks and bitcoin industry groups into compromise.
Seiberg’s comments came as White House bitcoin and digital assets adviser David Sacks was set to host a meeting with banking trade groups, digital asset trade groups, and Coinbase.
Stablecoin rewards remain the sticking point
The meeting is expected to focus on how stablecoin rewards should be treated in the Senate Banking Committee.
Banks have warned that allowing platforms to pay rewards without clear limits could pull deposits away from the traditional banking system, particularly community banks.
Some firms, including Coinbase, have argued the issue is being used to limit competition and say the question was already addressed during negotiations around the GENIUS Act, which was signed into law last July.
Oversight and competition concerns
Seiberg said payments on stablecoins are “inevitable,” but the key questions are when platforms would be granted that authority and what regulatory oversight they would accept.
He also pointed to tension within the industry, arguing legal ambiguity has acted as a barrier to entry that can benefit incumbents.
Democrats’ demands may be the bigger hurdle
Seiberg said the larger obstacle may be securing enough Democratic votes in the Senate, where up to 10 Democrats could be needed.
He said Democrats are expected to push for stronger investor protections, tougher anti-money-laundering and Bank Secrecy Act standards, and stricter conflict-of-interest rules.
Seiberg also flagged demands to bar the president, senior officials, and their families from owning or controlling digital asset entities, noting added sensitivity after a Wall Street Journal report alleging a $500 million investment tied to Trump-linked World Liberty Financial.
Seiberg concluded:
“Our view is that it will require President Trump’s personal intervention to force the crypto and banking industries to make the compromises needed for crypto market structure legislation to have a chance of advancing in Congress.”
