Trump delivers statement at Davos: New legislation propels the US toward becoming the "Global Cryptocurrency Capital"

“We are working hard to ensure that the United States maintains its position as the ‘Global Cryptocurrency Capital,’” Trump pledged at the World Economic Forum on January 21, revealing that Congress is actively pushing forward a comprehensive market structure legislation, which is expected to be signed into law soon. He was referring to the highly anticipated “2025 Digital Asset Market CLARITY Act.” The bill aims to establish a federal digital asset trading and custody framework, clarifying when digital assets should be considered securities and when they should be considered commodities.

Davos Declaration and Legislative Progress

At the Davos forum, Trump emphasized his administration’s determination to make the U.S. a global hub for cryptocurrencies. He specifically pointed out that Congress is “working very diligently” to craft a new set of rules for digital assets, which he “hopes to sign into law soon.”

Since taking office in 2025, the Trump administration has shifted its digital asset policy from defensive regulation to proactive rulemaking, aiming to strengthen America’s leadership in digital financial technology. The Trump administration has already signed the GENIUS Act, primarily regulating stablecoins, requiring issuers to hold adequate reserves, and explicitly prohibiting paying interest to holders. The CLARITY Act is a more comprehensive market structure legislation.

Core Framework of the CLARITY Act

The core innovation of the CLARITY Act is the introduction of the concept of “mature blockchain systems.” Under this logic, digital assets in the initial fundraising stage may be regulated as “investment contract assets” by the U.S. Securities and Exchange Commission (SEC), but as the network becomes sufficiently decentralized, they can transition to “digital commodities,” regulated by the U.S. Commodity Futures Trading Commission (CFTC).

The bill will clearly delineate the regulatory authority between the SEC and CFTC: the SEC will oversee “digital investment assets” or “digital securities,” while the CFTC will oversee “digital commodities.” Both agencies will also jointly regulate financial market intermediaries engaged in digital asset trading. Standards for determining “maturity” include: no single entity holding more than 20% of tokens, and the project’s value mainly derived from actual use rather than speculation.

New Movements in Regulatory Agencies

In line with the legislative process, personnel and policy shifts are also evident among major U.S. financial regulators. Trump appointed Paul Atkins, considered crypto-friendly, as SEC Chairman, who has pledged to develop clear standards for digital asset classification.

More notably, new CFTC Chairman Mike Selleck has explicitly stated that the agency will move away from an “enforcement-first” regulatory approach and establish formal rules for emerging markets like digital assets. Selleck pointed out that the digital asset economy has grown from a “novelty” to a market worth approximately $3 trillion, and he promised to create a more stable regulatory framework through formal rulemaking procedures, as well as establish an Innovation Advisory Committee to guide financial innovations including crypto assets.

Controversies and Challenges of the Bill

Despite government support, the legislative process for the CLARITY Act has not been smooth. The bill’s review by the Senate Banking Committee has been postponed to early 2026. One point of controversy is whether stablecoins should be allowed to pay interest. Banking institutions worry that if stablecoins can generate yields, they might compete with traditional bank deposits, leading to capital outflows. This controversy has previously caused a pause in the bill’s review.

Another core dispute concerns the regulation of decentralized finance (DeFi). Industry groups believe that applying traditional securities rules strictly to DeFi protocols could push these innovative activities out of the U.S. market.

Market Reactions and Investment Impact

Trump’s remarks at Davos immediately triggered market volatility. Reports indicated that Bitcoin’s price initially fell but then partially rebounded, climbing back to around $90,000. The sharp market reaction highlights how sensitive policy signals are to the cryptocurrency sector.

According to Gate data, as of January 23, 2026, Bitcoin’s price was $89,662.5, with a market cap of $1.79 trillion, accounting for 56.51% of the entire crypto market. Ethereum was priced at $2,956.79, with a market cap of $35.695 billion, holding an 11.26% market share.

Analysts believe that if the CLARITY Act passes, it will bring long-term benefits to the crypto market by reducing regulatory uncertainty and creating conditions for large-scale institutional investment. However, some warn that certain restrictive provisions in the bill could hinder innovation.

Significance for Investors and Traders

For ordinary investors, the gradual clarification of the U.S. cryptocurrency regulatory framework means a safer trading environment. The passage of the CLARITY Act will establish a nationwide unified digital asset trading and custody framework, ending the current patchwork of state regulations.

The provisions regarding tokens transitioning from securities to commodities may encourage more long-term project development and practical application, rather than short-term speculation. This could foster a healthier crypto ecosystem. With the CFTC adopting a more friendly regulatory stance, derivatives and futures products may further develop, providing traders with more diverse risk management tools.

When asked about the Federal Reserve’s next chair at Davos, Trump said he would soon announce a “respected male” to fill the position. He jokingly expressed concern that the next chair might change behavior “and betray” him after taking office, but then acknowledged that “the other person must do what they believe is right.” As the CLARITY Act continues to be reviewed in the Senate, the future of U.S. cryptocurrency will gradually unfold in the debate rooms of Congress and on trading screens in global markets. The clarity of regulation, like the morning sun in Davos, may be temporarily obscured by clouds but will ultimately pierce through the fog of uncertainty, illuminating the path for the U.S. to become the “Global Cryptocurrency Capital.”