US President Donald Trump told a Davos audience Wednesday he backed signing the payment stablecoin bill, the GENIUS Act, in July because it was “politically good” and because “China wanted that market, too,” as he stated. He added that supporting the law was also meant to prevent China from gaining control of the market.
Trump warned that stablecoins must not fall under foreign control and said they were popular at home. He said, “[I]t is politically popular,” and also, “But it’s, much more importantly, we have to make it so that China doesn’t get the hold of it. And once they have that hold, we’re not going to be able to get it back.”
He has previously pledged to make the United States the “world capital of artificial intelligence and crypto.” A related clip of his remarks is also available mentioned online.
The Senate bill known as the CLARITY Act was delayed for a markup after Brian Armstrong, CEO of Coinbase, said he could not support the measure “as written.” Industry leaders, including Armstrong, are attending Davos events this week.
The GENIUS Act requires implementation 120 days after agencies issue regulations, or 18 months after enactment (Ed. note: agencies must still issue those regulations). China’s central bank started allowing commercial banks to pay interest on digital yuan deposits in January, while some U.S. banks seek language to ban third‑party stablecoin yields. The Senate Banking Committee has not scheduled another CLARITY Act markup.
