TLDR
- Trump stated at the World Economic Forum in Davos that the US must prevent China from dominating the cryptocurrency market because control would be impossible to regain.
- The president signed the GENIUS Act in July 2024, which establishes initial consumer protections for payment stablecoins, primarily to counter China’s interest in the market.
- Trump said Congress is working on crypto market structure legislation called the CLARITY Act, which he hopes to sign soon.
- China’s central bank began allowing commercial banks to pay interest on digital yuan deposits in January 2025, while US banking groups oppose similar yields for stablecoins.
- The CLARITY Act was delayed for markup after Coinbase CEO Brian Armstrong said he could not support the bill as written.
President Donald Trump told business leaders at the World Economic Forum in Davos that preventing China from controlling cryptocurrency markets is a key reason behind his administration’s crypto policies. Trump addressed the forum on Wednesday, speaking about the recently signed GENIUS Act and upcoming legislation.
JUST IN 🚨 Trump in Davos: “I'm also working to ensure America remains the Crypto Capital of the World… Congress is working very hard on Crypto market structure legislation, which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom." pic.twitter.com/qxzQ5hk5l0
— Insider Paper (@TheInsiderPaper) January 21, 2026
Trump said he supported the GENIUS Act, which focuses on payment stablecoins, because it was politically popular. However, he emphasized that the more important reason was responding to China’s interest in the market. The president warned that if China gains control of crypto, the US would not be able to get it back.
The GENIUS Act passed both the House and Senate with bipartisan support in 2024. Trump signed the legislation into law in July. The act sets initial guardrails and consumer protections for stablecoins, which are cryptocurrencies tied to stable assets like the US dollar to reduce price volatility.
Trump spoke virtually from Washington DC at the WEF’s 2025 meeting, where he pledged to make the US the world capital of artificial intelligence and crypto. His Wednesday speech in Davos marked his second address to the WEF since taking office in January 2025.
The president mentioned that Congress is working on additional crypto market structure legislation called the CLARITY Act. Trump said he hopes to sign the bill very soon. The legislation has faced delays and is currently under consideration in the Senate.
CLARITY Act Faces Industry Pushback
The CLARITY Act was delayed for markup earlier this month following concerns from industry leaders. Coinbase CEO Brian Armstrong stated he could not support the bill as written. Armstrong and other crypto industry leaders attended events in Davos this week as part of the WEF.
Some experts have raised concerns that the CLARITY Act may put US dollar-pegged stablecoins at a disadvantage compared to China’s digital yuan. The bill lacks clarity on whether stablecoin issuers can offer rewards to users. This has become a point of contention between the crypto industry and traditional banking groups.
The People’s Bank of China started allowing commercial banks to pay interest on digital yuan deposits in January 2025. This move gives China’s central bank digital currency a potential advantage in attracting users. Many US banking groups continue to push for language in the CLARITY Act that would ban third-party platforms and issuers from paying stablecoin yields.
The GENIUS Act requires implementation within 120 days after US agencies approve regulations or 18 months after enactment. This timeline means the full effects of the legislation may not be seen until later in 2025 or early 2026.
As of Wednesday, the US Senate Banking Committee had not scheduled another markup on the CLARITY Act. Some lawmakers and industry leaders have indicated it could be weeks before the bill returns for consideration. Trump criticized former President Joe Biden’s administration for initially opposing crypto before changing positions during the election campaign.
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