Trump Reaffirms US as Global Crypto Hub
Speaking at the World Economic Forum in Davos, Switzerland, Donald Trump renewed his ambition to position the United States as the global leader in digital assets. During his address, Trump said Congress is making strong progress on cryptocurrency market structure legislation and expressed confidence that he could sign the bill into law “very soon.”
According to Trump, the proposed legislation would provide long-awaited regulatory clarity for bitcoin, stablecoins, and the broader crypto market, reinforcing his administration’s pro-crypto stance.
Momentum Builds After a Turbulent Week
Efforts to advance the crypto market structure bill have intensified in recent days, despite setbacks. The push gained urgency after Coinbase withdrew its support last week, prompting the Senate Banking Committee to postpone a key hearing at the last minute.
The delay highlighted internal disagreements in Washington, even as lawmakers face growing pressure to deliver a clear regulatory framework while the political environment remains favorable to digital assets.
Stablecoin Rewards Spark Banking vs Crypto Clash
At the center of the debate is the treatment of stablecoin rewards. Banking groups have criticized provisions linked to the GENIUS stablecoin framework passed last summer. While the law prevents stablecoin issuers from paying direct interest, it allows third-party platforms to offer rewards to users.
Banks argue that this loophole could drain deposits from traditional financial institutions, particularly community banks. Crypto firms, however, counter that the rules were already negotiated and accuse banks of attempting to stifle competition in the digital asset economy.
White House Pushes for Compromise
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, warned that delaying legislation could cause the bill to lose momentum under the current administration. Echoing recent comments from Coinbase CEO Brian Armstrong, Witt emphasized that passing the right bill matters more than rushing flawed legislation.
Industry leaders have also urged lawmakers to act. Brad Garlinghouse, CEO of Ripple, said no regulation will ever satisfy everyone but stressed that a clear market structure is essential to allow innovation to thrive in the US crypto sector.
David Sacks Weighs In From Davos
White House AI and Crypto Czar David Sacks addressed the stablecoin yield issue in an interview with CNBC, saying he supports compromise to ensure the bill reaches the president’s desk.
Sacks highlighted the importance of balancing financial stability with innovation, a key theme as Washington seeks to regulate crypto markets without driving companies offshore.
Key Senate Hearings Ahead
The Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission and plays a growing role in crypto regulation, is scheduled to hold a hearing on January 27 to amend and vote on its version of the bill. Legislative text is expected to be released imminently.
Meanwhile, the Senate Banking Committee has yet to reschedule its postponed hearing, leaving the timeline uncertain. Still, with Trump openly backing the effort and industry leaders calling for action, pressure is mounting for Congress to deliver comprehensive crypto market structure legislation in the coming weeks.
