Also, President Trump has publicly sided with cryptocurrency firms in their ongoing battle with U.S. banks. The dispute centers on whether crypto companies should be allowed to offer interest-like rewards on stablecoins, according to CNBC. On his X page, Trump stated:

“The Genius Act is being threatened and undermined by the Banks, and that is unacceptable – We are not going to allow it. The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money.”

The key issue is whether exchanges like Coinbase should be permitted to offer rewards programs that pay customers an annual percentage yield (APY) for holding stablecoins. In many cases, these yields are higher than traditional bank deposit rates, which are currently near zero.

Banks are concerned that these higher yields could pull money out of traditional accounts. According to reports, banking groups have been lobbying lawmakers, warning that high-yield crypto products could drain deposits and weaken lenders. Executives from major banks such as JPMorgan Chase (NYSE: JPM) and Citigroup (NYSE: C) have reportedly pushed for tighter regulation or limits on crypto rewards programs.

How to Trade This Opportunity

If crypto-friendly legislation gains traction in the Senate, there are a few ways investors could position themselves.  One is by trading Coinbase. Another way is to jump into Bitcoin-focused exchange-traded funds (ETFs), which are beginning to rally again, too.

Here are a few ETF options for trading the long side of Bitcoin:

ProShares Bitcoin Strategy ETF (BITO)

With an expense ratio of 0.95%, BITO gives investors exposure to Bitcoin without needing to manage crypto wallets or private keys. Instead, you can buy it through a regular brokerage account. As noted by Money, one of the main attractions of crypto ETFs like BITO is their convenience. That is, investors get Bitcoin exposure without the technical complexity.

YieldMax Bitcoin Option Income Strategy ETF (YBIT)

YBIT has an expense ratio of 0.99% and a yield of 1.54%. It does not invest directly in Bitcoin. Instead, it uses a synthetic covered call strategy on select U.S.-listed Bitcoin exchange-traded products (ETPs). The goal is to generate current income.  The advantage? Investors don’t need to understand options strategies. You can simply buy the ETF, potentially benefit from Bitcoin’s upside, and collect dividend income along the way.

NEOS Bitcoin High Income ETF (BTCI)

With an expense ratio of 0.98%, a 30-day yield of 2.76%, and a distribution rate of 27.25%, the NEOS Bitcoin High Income ETF (BTCI) seeks to distribute monthly income generated from writing call options on Bitcoin Futures ETFs. It also pays out a dividend every month. 

Grayscale Bitcoin Covered Call ETF (BTCC)

With an expense ratio of 0.66%, a 30-day yield of 3.24%, and a distribution rate of 59.36%, the Grayscale Bitcoin Covered Call ETF (BTCC) generates income through covered call writing on Bitcoin exchange-traded products (BTPs). The fund does not directly invest in digital assets. In addition, the ETF distributes dividends twice per month.

Simplify Bitcoin Strategy PLUS Income ETF (MAXI)

With an expense ratio of 6.1%, a distribution rate of 13.49%, and a monthly dividend, the Simplify Bitcoin Strategy PLUS Income ETF (MAXI) seeks to generate capital gains and income while providing exposure to Bitcoin. It also generates income by selling short-dated put and/or call spreads on indices, ETFs, and stocks. All of which appeals to investors seeking growth potential and income from their investments.

Crypto Policy Could Be the Next Catalyst for Bitcoin

Bitcoin’s recent weakness triggered a pullback in many crypto-related stocks, but that correction may now be creating a new opportunity for investors. If Bitcoin successfully establishes a bottom and begins trending higher again, companies like Coinbase could benefit from renewed trading activity and investor demand.

At the same time, political support for crypto-friendly policies — including stablecoin reward programs — could serve as an additional catalyst for the industry. For investors who want exposure but prefer not to hold Bitcoin directly, ETFs tied to Bitcoin futures or income-generating strategies offer several alternatives. Whether through Coinbase stock or Bitcoin-focused ETFs, the sector may be entering another period where regulatory momentum and market sentiment align to support higher prices.