In a wide-ranging and characteristically unscripted address at the World Economic Forum in Davos on January 21, 2026, U.S. President Donald Trump reaffirmed his administration's aggressive push to position America as the undisputed "crypto capital of the world." Highlighting both political gains and strategic imperatives, Trump announced expectations to sign comprehensive cryptocurrency market structure legislation "very soon," while touting the landmark GENIUS Act he signed into law in July 2025 as a foundational victory in the race against global competitors — particularly China.
Trump's remarks came amid ongoing congressional negotiations on broader crypto rules, often referred to in industry circles as the CLARITY Act or similar market structure bills. "Congress is working very hard on crypto market structure legislation — Bitcoin, all of them — which I hope to sign very soon," he stated, framing the move as a pathway to "unlock new pathways for Americans to reach financial freedom" and unleash innovation in savings and financing.
This follows the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), which established the first federal framework for payment stablecoins, requiring 100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries, monthly public disclosures, and prohibitions on misleading claims about government backing or insurance.
The GENIUS Act, passed with bipartisan support and signed by Trump on July 18, 2025, has already reshaped the stablecoin landscape. It mandates that only permitted issuers—such as subsidiaries of insured depository institutions or federally/state-qualified nonbank entities — can issue stablecoins for U.S. persons, with strict redemption policies and reserve transparency. Industry observers credit the law with boosting confidence, contributing to a surge in global crypto market capitalization beyond $4 trillion in late 2025 and spurring traditional banks to enter the $264 billion stablecoin market more aggressively.
Trump emphasized the dual motivations behind his crypto support: domestic political dividends and geopolitical strategy. "It was politically correct, and I got tremendous support," he noted, alluding to strong backing from the crypto community during his campaigns and tenure. More critically, he positioned the issue as a national security priority: "We cannot allow China to take control of this market." This echoes broader themes in his Davos speech, where he linked crypto dominance to leadership in emerging technologies like artificial intelligence, vowing U.S. supremacy across these frontiers to counter Beijing's ambitions.
The president's comments triggered an immediate market reaction. Bitcoin rose approximately 1.5% shortly after he began discussing crypto, briefly climbing toward $89,500–$90,000 amid the optimism, though it later moderated amid broader session volatility tied to other geopolitical topics like Greenland and tariffs. The uptick reflected trader enthusiasm for accelerated U.S. regulatory clarity, which many view as a catalyst for institutional adoption and mainstream integration.
Broader context reveals significant momentum. The GENIUS Act's passage last summer aligned federal and state oversight for issuers under $10 billion in circulation, while prohibiting interest passthroughs from reserves to users in certain cases — provisions that have sparked debates with banking lobbyists concerned about deposit flight to yield-bearing stablecoin alternatives.
Ongoing Senate discussions on the market structure bill address jurisdictional clarity between agencies like the SEC and CFTC, anti-money-laundering rules, and decentralized finance requirements. Trump’s public endorsement adds pressure to finalize compromises, especially as figures like Coinbase CEO Brian Armstrong advocate for "win-win" legislation at Davos.
Trump's family ties to crypto ventures, including projects like the USD1 stablecoin (now among the top globally), have drawn scrutiny from critics who question potential conflicts. However, supporters argue his policies have mainstreamed digital assets, with executive orders and pro-crypto appointments accelerating adoption.
As negotiations advance, the stakes extend beyond finance. A comprehensive framework could solidify U.S. advantages in blockchain innovation, tokenized assets, and cross-border payments — while preventing regulatory fragmentation that might cede ground to jurisdictions like China or the EU. Trump's Davos declaration signals that after years of uncertainty, decisive U.S. crypto regulation may arrive imminently, potentially transforming the sector's trajectory in 2026 and beyond.
Whether the final bill resolves lingering tensions over stablecoin yields or DeFi oversight remains key, but the president's words have once again placed digital assets at the center of America's technological and economic strategy.
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