Donald Trump took the stage at the World Economic Forum in Davos. The American leader confirmed the course to maintain the US status as the global crypto capital, announcing a personnel shake-up at the Fed. The key takeaway: the US is reclaiming the digital asset market to keep it out of China's hands.
From Genius Act to Full Regulation
Trump highlighted that he signed the Genius Act last year to spark innovation. Congress is now wrapping up comprehensive legislation on crypto market structure.
The President announced plans to sign this bill shortly. The goal is to open new pathways to financial freedom for Americans by cementing clear rules.
Trump reiterated that the Joe Biden administration was initially hostile to the industry. He argued that Democrats only pivoted their rhetoric just before the election when they sensed the risk of losing millions of crypto votes, but it was already too late.
Why the US Cannot Yield to China
Trump emphasized that supporting crypto is a geopolitical imperative for the White House, not merely economic. He drew a direct parallel with artificial intelligence, noting that China actively competed for leadership in both fields.
“The US had to seize the initiative to block Beijing's dominance in digital finance. If Washington had not acted quickly, regaining control of the market would have been impossible. Now, this threat is neutralized,” he declared.
Replacing the Fed Chair Amidst Records
Markets are bracing for a monetary policy shift. Trump blasted current Fed Chair Jerome Powell, dubbing him “Jerome too late Powell” for constant delays in interest rate decisions.
The President teased the imminent appointment of a new Federal Reserve Chair. No name has been dropped yet, but a leadership change is inevitable.
Trump noted that the economic backdrop for the crypto market is favorable. Inflation has been defeated (1.6% over the last three months), and Q4 GDP growth is projected at 5.4%. The stock market smashed all-time highs 52 times this year, adding $9 T to household wealth.
Energy Independence for Miners
He also touched upon power supply for the tech sector. To support AI clusters and data centers — infrastructure critical for mining — the US is fast-tracking new capacity.
The administration authorized tech giants to build their own power plants, banking on gas and nuclear energy. This alleviates strain on national grids, ensuring stability for energy-hungry industries.
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