As the controversy over the Greenland episode rages, U.S. President Donald Trump arrived in Davos, Switzerland, on Jan. 21.
With stock market benchmarks like the S&P 500 and Nasdaq 100 and cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) struggling on the charts, Trump delivered a long speech to a packed audience at the World Economic Forum (WEF).
While he reiterated the U.S.'s claim over the island, he ruled out the use of force as European countries attempt to counter Uncle Sam's domineering pose.
Related: Billionaire warns Greenland episode shatters Bitcoin myth
Trump reiterates 'crypto capital of the world' promise
At the WEF, Trump sharply criticized the Joe Biden administration for failing the crypto industry and hailed his own administration for making quick progress as he completes one year of his second presidential term.
The president said that he is working hard to ensure the United States remains the "crypto capital of the world."
He reminded the audience that he signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law last year for the same purpose.
The first major crypto-related legislation to become a law in the U.S., the GENIUS Act regulates stablecoins pegged to the U.S. dollar.
Related: Explained: What is a stablecoin?
A stablecoin is a type of cryptocurrency that attempts to stabilize its value, unlike traditionally volatile cryptocurrencies such as Bitcoin , by being pegged to a traditional currency like the U.S. dollar.
Thanks to crypto's 24/7 and borderless nature, a stablecoin is being treated as a "digital dollar" by a small but growing section of the global finance industry which is using stablecoins for payment settlements when the traditional venues sleep.
The Trump administration has also attempted to instrumentalize the GENIUS Act to consolidate the dominance of the U.S. dollar through "digital dollars" as countries like China attempt the global de-dollarization drive.
Though Trump didn't mention it during the address, he also signed an executive order last year to establish a strategic Bitcoin reserve.
The reserve will consist of BTC seized by federal agencies as part of asset seizures. It could also include BTC acquired by budget-neutral strategies.
Not only that, but the House of Representatives last year passed the CBDC Anti-Surveillance State Act.
It blocks the Federal Reserve from issuing or testing a central bank digital currency (CBDC) without explicit congressional approval, an apparent nod to an anti-state surveillance stance. The legislation is awaiting the Senate vote.
More News:
-
Coinbase CEO denies reports of White House clash over crypto bill
-
Trump's new CFTC chair vows sweeping overhaul of decades-old rules
Trump says U.S. crypto leadership crucial to beat China
But there is the crypto market structure legislation currently under consideration in the Congress that has proved to be particularly contentious due to the banking and crypto industries battling over stablecoin rewards.
Last we checked, the largest crypto trading exchange in the U.S., Coinbase, withdrew its support from the bill, as CEO Brian Armstrong said,
"We'd rather have no bill than a bad bill."
Trump didn't ignore the contentious issue during the address and assured that the U.S. Congress is working hard on the legislation and he hopes to sign it "very soon." It will unlock new pathways for Americans to reach financial freedom, he added.
Trump shared two reasons why crypto is a top policy agenda item of his administration.
"Number one, I thought it was politically good, and it was,"he said. "I got tremendous political support."
The second reason Trump shared has less to do with the U.S. crypto industry and more to do with beating the dragon in innovation.
"But more importantly, China wanted that market too,"Trump said.
After all, China is the main target of Trump's ongoing tariff regime, and the tit-for-tat war hasn't ended yet.
Trump stated that the U.S. needs to focus on crypto so that China doesn't get ahold of it. Once the Asian superpower gets hold of digital assets, the U.S. will not be able to get it back, he admitted.
However, the restriction on stablecoin rewards in the draft of the crypto market structure legislation could benefit China, the Coinbase CEO recently argued .
Armstrong warned that in the U.S., "we are missing the forest through the trees" by excluding stablecoin rewards as China begins paying interest on their stablecoins.
To be precise, China is not paying interest on stablecoins but on the digital yuan, the CBDC issued by the People's Bank of China (PBOC).
Patrick Witt, Executive Director of the President's Council of Advisors for Digital Assets, meanwhile, criticized Armstrong's remarks and said that there will indeed be a crypto market structure bill. He added that it's a question of when, not if.
Witt said that while stakeholders might not like every part of the legislation, they will hate a future Democratic version even more.
Related: EU freezes U.S. trade deal as Greenland clash makes business 'impossible'
This story was originally published by TheStreet on Jan 21, 2026, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
