President Trump will soon sign Cryptocurrency Market Structure Act to unleash innovation

important notes

President Trump said Congress is moving forward with a virtual currency market structure bill to prevent China from dominating the digital asset sector. Coinbase CEO Brian Armstrong pointed out that the current bill has important issues, including a ban on tokenized stocks and a ban on DeFi. Bitcoin fell below $90,000 amid regulatory uncertainty, triggering mass liquidations across the crypto market.

Speaking at the World Economic Forum (WEF) in Davos, US President Donald Trump expressed hope that he could sign the CLARITY Act soon. The law, which is a bill to structure the cryptocurrency market, has been embroiled in public controversy over concerns that it would kill innovation in favor of traditional banks.

“To unlock innovation and savings and financing, I am committed to ensuring that America remains the crypto capital of the world. And to that end, I signed the landmark GENIUS Act last year. Now Congress is hard at work on the Cryptocurrency Market Structure Act for Bitcoin and all of that. I hope to sign it soon and open a new path for Americans to reach financial freedom.” President Trump said.

He then continued his speech and mentioned two reasons behind these actions. First, given the political strength of cryptocurrencies, with millions of voters looking for crypto-friendly candidates. Second, it is to prevent China from becoming the crypto capital of the world, which President Trump sees as a risk.

“The first (reason) was that we thought it was a good thing politically, and we were right. We got a lot of political support. But more importantly, as much as China wants AI, they want that market. And I think we’ve locked in that market pretty tightly. (…) Once they (China) take that role, we won’t be able to take it back.”

JUST IN: 🇺🇸 President Trump said he hopes to sign the Cryptocurrency Market Structure Act (CLARITY Act) soon. pic.twitter.com/2tQQqeefwP

— Altcoin Daily (@AltcoinDaily) January 21, 2026

Sen. Cynthia Lummis agreed in a follow-up post, sharing a clip from the video above and saying, “It’s time to get the Transparency Act to the finish line.”

Coinbase withdraws, expresses concerns over CLARITY Act

However, corporate groups in the cryptocurrency industry do not seem to agree with the “freedom of innovation” and “economic freedom” sections of the current structure law. Controversy arose after Coinbase CEO Brian Armstrong posted on X on January 14, “Unfortunately, Coinbase cannot support this bill as written.”

In his post, Armstrong listed a series of issues identified in the bill, including a ban on tokenized stocks, a ban on DeFi, anti-privacy attributes, “eroding the CFTC’s authority, stifling innovation, and subordinating it to the SEC,” banning the possibility of stablecoins that provide yield to users, and, in his words, “enabling non-competition of banks.” On January 21, Coinbase’s CEO further emphasized his position while summarizing the controversy in an appearance on CNBC, but expressed optimism.

Here’s a quick summary of what happened last week regarding the CLARITY Act.

Right now, we are all working together to find a win-win scenario, especially for the American people. pic.twitter.com/Wcry97B3qf

— Brian Armstrong (@brian_armstrong) January 21, 2026

As reported by CoinSpeaker, Bitcoin crashed below $90,000 yesterday amid uncertainty, causing massive liquidations in the market. This is the second consecutive day of significant long position liquidations, following the liquidation of approximately $900 million from January 19th.

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