Trump Pledges to Sign Crypto Market Structure Legislation 'Very Soon' at Davos Forum

Trump Addresses Crypto Policy at World Economic Forum

U.S. President Donald Trump announced his intention to sign major cryptocurrency market structure legislation in the near future during his address at the World Economic Forum in Davos, Switzerland on Wednesday ^[1][2]. The announcement triggered modest gains in Bitcoin, which briefly surged above $90,000 before pulling back ^[1][3].

"To unleash innovation and savings and financing I'm also working to ensure America remains the crypto capital of the world," Trump stated during his speech ^[1]. He added that "Congress is working very hard on crypto market structure legislation — Bitcoin, all of them — which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom" ^[1][2].

Legislative Framework and Market Impact

Trump referenced the GENIUS Act, which he described as a "landmark" piece of legislation he previously signed into law, as a foundational step toward his administration's crypto goals ^[1][2]. The President framed the broader crypto market structure rules as being close to becoming law ^[2].

Bitcoin's price reaction to the speech showed daily gains reaching 1.7% as Trump took the stage ^[1]. At the time of the reports, Bitcoin was trading around $89,942, approximately 2% above its seven-day low ^[2], though it later corrected below $89,000 after initially rising to $90,370 ^[3].

Political and Geopolitical Motivations

Trump openly discussed the dual motivations behind his cryptocurrency support. "China wanted that market too," he said. "It's just like they want the AI. And we've got that market, I think, pretty well locked up" ^[2][3]. The President also acknowledged that crypto delivered "tremendous political support" during elections ^[2].

In a critique of his predecessor, Trump claimed that Democrats only reversed their position on cryptocurrency late in the 2024 election cycle after recognizing voter interest in digital assets. "All of a sudden they loved it very much, but it was too late," Trump said. "They blew it" ^[2].

Legislative Challenges and Market Context

Despite Trump's optimistic timeline, the legislative process faces complications ^[3]. A key point of contention involves stablecoin rewards, with the banking sector expressing concerns that yields on stablecoins like USDT and USDC could draw deposits away from traditional financial institutions, while the crypto industry accuses banks of fearing competition ^[3].

The Senate is currently advancing market structure legislation through multiple committees, though final language has yet to be released and markups have experienced delays ^[2]. Political action committees backed by crypto firms spent hundreds of millions of dollars during the 2024 election cycle and are mobilizing ahead of the 2026 midterms ^[2].

Broader Market Conditions

Trump's crypto comments came amid broader market developments, including concerns about Japanese government bonds. Ten-year Japanese bond yields have risen to around 2.29%, levels not seen since 1999, exposing fiscal vulnerabilities in a country where government debt exceeds 240% of GDP ^[1]. Trading resource The Kobeissi Letter warned that Japanese government bond demand was "crashing" ^[1].

The S&P 500 was up 0.5% at the time of the speech ^[1]. Trump also predicted that the Dow Jones Industrial Average would reach 50,000 and "double, in a relatively short period of time" ^[1]. Additionally, he ruled out using military force to take over Greenland, a topic that had previously contributed to market tensions ^[1][3].