US crypto bill soon at Davos 2026: Davos, Switzerland – In a major announcement that sent ripples through the cryptocurrency world, U.S. President Donald Trump declared during his speech at the World Economic Forum (WEF) on January 21, 2026, that he would be signing comprehensive crypto market structure legislation "very soon." This statement, delivered to a global audience of leaders, bankers, and innovators, reflects Trump's vision of establishing the U.S. as the "undisputed crypto capital of the world" amidst growing competition from countries like China.
Trump hints at signing the US crypto bill soon at Davos 2026
The president's words about crypto come at a crucial time for the cryptocurrency industry, which has been facing ongoing challenges due to regulatory uncertainty. Trump stated, "Congress is currently working hard on the Crypto Market Structure Bill—which includes Bitcoin and everything else, and I expect to sign it soon, giving Americans new opportunities to achieve financial freedom."
He also mentioned signing the GENIUS Act in 2025, which paved the way for the development and innovation of stablecoins in the digital asset space. This new legislation, commonly known as the CLARITY Act or the Digital Asset Market Structure Bill, aims to define regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), classify digital assets like Bitcoin as commodities, establish a framework for stablecoins, and address the regulation of decentralised finance (DeFi).
Market Reaction: Bitcoin Surges Past $90K Milestone
The announcement immediately caused market volatility, with Bitcoin (BTC) briefly surging past $90,000, a new high for 2026—but it stabilised amid broader economic pressures, including turmoil in the Japanese bond market. On platforms like X (formerly Twitter), crypto enthusiasts and traders hailed the news as a potential "institutional unlock," with influencers like @GordonGekko emphasising that the bill could pave the way for banks and traditional finance to embrace digital assets fully. One viral thread stated, "This regulatory foundation is being laid in real time," predicting clearer rules on stablecoin yields and a reduction in "regulation by enforcement."
However, reports of legal hurdles have dampened these expectations. According to sources, the Senate Banking Committee has prioritised housing affordability legislation—which aligns with Trump's executive order restricting institutional investors in single-family homes—potentially delaying the crypto bill until February or March 2026. Key points of contention include the debate over stablecoin rewards, which banks view as a threat to traditional deposits, while crypto firms like Coinbase argue they are essential for innovation.
Geopolitical Context: Racing Against China
Trump's initiative is being seen as a strategic move to counter China's advancements in digital currency. He warned that if immediate action isn't taken, the U.S. will fall behind in the global race to lead in the blockchain world, especially as Beijing is working on an interest-bearing digital yuan and AI-integrated stablecoins. "To promote innovation, savings, and finance, I'm also working to ensure that America remains the world's crypto capital," Trump reiterated, echoing themes from his 2024 campaign, where cryptocurrency emerged as a significant political issue.
Industry leaders at Davos were equally upbeat about the trend. BlackRock CEO Larry Fink drew a parallel between tokenisation and the internet boom of 1996. Meanwhile, conversations with Stellar's Denelle Dixon and Anthony Scaramucci underscored the growing demand for blockchain platforms that meet regulatory standards and appeal to institutional players.
One panel put it plainly: "What institutions want is native issuance, built-in compliance, and settlement finality—and that's exactly what's being developed." The message was clear: the gap between traditional finance and DeFi is closing.
What does this mean for crypto overall?
If this bill actually goes through, it could shake things up in a big way. For years, the industry has been stuck in limbo—regulators kept dragging their feet, companies got nervous, and plenty of projects simply packed up and moved overseas. But now, analysts think we might finally see real institutional money flowing in, with banks stepping into custody and trading. That could open doors for tokenised assets and Web3 apps to take off. Of course, not everyone's convinced. Some worry the rules might go too far, and with so many different voices in the room, the final version could end up getting watered down.
There was another interesting wrinkle—Trump showed up at Davos right when people were buzzing about who he might pick to run the Federal Reserve. BlackRock's Rick Rieder seems to be at the top of the list, and he's no crypto sceptic. He's called Bitcoin "digital gold" more than once. If he lands the job, monetary policy could tilt in a direction that keeps liquidity flowing—exactly what crypto markets love. Some are already calling it the setup for a "2026 super cycle."
Congress is back in session, and all eyes are on the Senate. Reports suggest they could begin working on the bill by the end of January. For those in the crypto world, Trump's recent comments aren't just talk – they're being seen as a sign of better days ahead, with clearer regulations and a real opportunity for growth. Whether "very soon" means things will move quickly or at the usual glacial pace remains to be seen. But one thing is certain – the excitement surrounding this is real. We'll be watching closely to see how it all unfolds, as the digital asset landscape continues to evolve.
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