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Stablecoin Growth as a Threat to Traditional Finance
A recent analysis suggests that Donald Trump’s pro-crypto policy could shake up Wall Street, especially with the growing influence of stablecoins. If stablecoins were to gain strong regulatory backing, they could compete with traditional bank deposits, fundamentally shifting the balance in the financial sector.
While Trump’s administration embraces cryptocurrencies, Silicon Valley is expanding its influence in finance, which could disrupt Wall Street’s dominance in capital markets and investments.
Trump’s Crypto Agenda and the Risk to Wall Street
According to a report by Financial Times, Trump’s crypto-friendly stance could pose a significant risk to Wall Street. The rise of stablecoins could empower Silicon Valley, leading to a major disruption of the traditional financial system.
A proposed regulatory framework for stablecoins, backed by Congress, could allow stablecoins to compete directly with traditional banking products, making them an attractive alternative for investors looking beyond conventional banking.
If stablecoins become a viable alternative to bank deposits, investors may shift their funds away from traditional banks, creating a serious challenge for Wall Street.
Silicon Valley Expanding into Finance, Threatening Wall Street
A new Congressional proposal could enable tech giants to issue their own stablecoins, fundamentally reshaping the financial sector.
If social media platforms and e-commerce giants start accepting stablecoins as deposits, they could evolve into “super apps”, directly competing with the traditional banking system.
At the same time, Trump’s administration has weakened regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB), reducing their ability to enforce new rules on payment technologies. This move paves the way for Silicon Valley’s deeper involvement in finance and makes it harder for Wall Street to resist competition.
As Financial Times notes, Wall Street should be cautious, as it may become the next industry disrupted by Silicon Valley. Some economists argue that traditional finance needs innovation, and disruption from crypto is inevitable.
Wall Street Analyzing Trump’s Crypto Policy
During Trump’s “memecoin frenzy”, major Wall Street institutions analyzed his crypto stance. They expected a policy that would boost crypto investments, but also hoped to profit from the growth themselves.
However, it now appears that the crypto economy may take a different path, one that challenges the traditional financial system rather than complementing it.
Trump’s Crypto Strategy and Global Impact
Since the start of his 2024 presidential campaign, Donald Trump has positioned himself as a strong supporter of cryptocurrencies. This stance boosted confidence in the crypto market, leading to price surges in Bitcoin and altcoins.
Additionally, his administration announced the creation of a U.S. strategic crypto reserve, placing the country at the forefront of the global crypto economy.
However, Congress’s proposals for stablecoin regulation have raised concerns about the potential disruption of traditional finance. If Financial Times' predictions hold true, Trump’s crypto revolution could deeply shake Wall Street’s foundations.

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