In late September 2025, Eric Trump offered a bullish outlook on the cryptocurrency market, anticipating an "unbelievable" surge throughout the fourth quarter. This prediction was grounded in two principal catalysts: an expected rise in the M2 money supply and the Federal Reserve's anticipated return to quantitative easing policies. Additionally, historical data pointing to Q4 as a traditionally strong period for crypto markets provided him further optimism.
However, subsequent market developments diverged sharply from these expectations. Bitcoin, which was priced around $113,400 at the end of September, retreated approximately 20% to near $89,900 by early 2026. Ethereum experienced a milder yet still notable decline of approximately 3.5% over the same timeframe. Both cryptocurrencies underwent substantial volatility and ultimately failed to achieve the predicted rally.
Eric Trump's Perspective on Legislative Barriers
During a recent interview conducted at the World Economic Forum in Davos, Switzerland, Eric Trump articulated frustration concerning delays in crypto-focused legislation. He suggested that entrenched interests within major banking institutions were obstructing regulatory progress to maintain control over traditional financial systems.
Trump emphasized how banks benefit financially from the conventional delays in money transfers, particularly citing the cessation of wire transfer operations after 5 p.m. on Fridays. This policy results in funds remaining idle over weekends, where banks accrue interest on these dormant balances. Cryptocurrencies, by contrast, enable near-instantaneous transfers, circumventing these delays and potentially diminishing banks' intermediary roles.
Legislative Delays and Industry Divisions
The Senate Banking Committee had been considering a crypto market structure bill that many hoped would invigorate the sector. Nonetheless, the legislation has encountered significant setbacks. Its introduction has been postponed until late February or March 2026, with the committee shifting focus toward housing legislation in the lead-up to congressional elections.
Complicating matters, Coinbase Global Inc. recently rescinded its backing of the bill. This withdrawal stemmed from unresolved disagreements with the banking sector, particularly concerning the provisions related to rewards for stablecoin usage. The impasse between financial institutions and crypto companies has stalled progress, with Republican members of the committee and the White House urging Coinbase and the wider crypto industry to reach accord with banking representatives before legislative advancement.
Parallel to this, the Senate Agriculture Committee unveiled a separate crypto regulatory proposal, with plans for markup scheduled for January 27. However, skepticism surrounds this effort due to the absence of bipartisan support, notably the opposition of Democratic Senator Cory Booker. Critics warn that the partisan nature of this bill may impede its passage, as it requires a 60-vote supermajority in the Senate.
Informants closely monitoring legislative developments suggest a best-case scenario where the Banking Committee could pass its version of the bill by late March 2026, potentially leading to a full Senate vote by July 4.
Market Reaction and Current Valuations
Following the failed rally, Bitcoin's value remains near $88,700, reflecting a moderate decrease of 0.74% within recent trading sessions. Ethereum is trading around $2,936, down approximately 1.44%. Coinbase shares have also seen declines, priced near $225.30 with a loss of 0.72%. These price movements highlight the ongoing volatility and investor caution in the absence of clear regulatory direction.
Technological and financial analysts continue to monitor these dynamics closely, with a focus on how forthcoming regulatory clarity may alter market sentiment and institutional adoption patterns. The resolution of legislative challenges bears significant implications for future crypto market trends.