Trump Expects to Sign Crypto Market Structure Bill Soon, Unleash Innovation
Speaking at the World Economic Forum (WEF) in Davos, United States President Donald Trump signals he expects to be able to sign the CLARITY Act soon. The Act is the crypto market’s structure bill that has been involved in public controversies due to fears of killing innovation in favor of traditional banks.
He then continued his speech mentioning the two reasons behind these acts. First, given crypto’s political strength, with millions of voters looking for a crypto-friendly candidate. Second, to prevent China from becoming the crypto capital of the world, which Trump recognizes as a risk.
In a follow-up post, Senator Cynthia Lummis shared and agreed with a clip from the video above, saying “It’s time to get the Clarity Act across the finish line.”
Coinbase Steps Back, Raises Concerns on the CLARITY Act
However, a group of crypto industry businesses seems to disagree with the “unleash innovation” and “financial freedom” part of the structure legislation in its current form. Controversy rose after Coinbase CEO Brian Armstrong posted on January 14 on X that “Coinbase unfortunately can’t support the bill as written.”
In the post, Armstrong listed a series of identified issues in the bill, including a ban on tokenized equities, DeFi prohibitions and anti-privacy attributes, “erosion of the CFTC’s authority, stifling innovation and making it subservient to the SEC” and prohibiting the possibility of stablecoins rewarding users with yield, “allowing banks to ban their competition,” in his words. On January 21, the Coinbase CEO doubled down on his positioning but demonstrated optimism while summarizing the controversy in a CNBC appearance.
Bitcoin crashed below $90,000 yesterday amid the uncertainty, causing massive liquidations in the market, as Coinspeaker reported. This was the second day in a row of significant long-position liquidations, following the nearly $900 million-liquidations from Jan. 19.
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