Trump pushes for crypto legislation "coming soon" to be signed, but stablecoin controversy stalls US market structure reform

On January 22, during the World Economic Forum in Davos, Switzerland, U.S. President Trump stated that he hopes to sign the Cryptocurrency Market Structure Bill “soon,” and explicitly called it an important step toward financial freedom. However, the reality has not been smooth; the bill is currently at an impasse in the U.S. Congress, with core disagreements centered on stablecoin yields, creating significant uncertainty for this groundbreaking crypto regulatory reform.

In his speech, Trump rarely mentioned Bitcoin, emphasizing that the U.S. needs to maintain a leading position in digital assets. However, just a few days ago, the Senate Banking Committee suddenly canceled its review of the related bill, indicating a clear mismatch between the president’s political will and Congress’s pace. In contrast, the Senate Agriculture Committee, responsible for commodity regulation, still plans to advance legislation related to digital commodities on January 27, but this version does not touch on sensitive provisions regarding stablecoin yields.

The controversy mainly stems from the fact that the previously passed GENIUS Act allows stablecoin holders to earn interest-like returns, which the banking industry views as a threat to traditional deposit business. Banking lobbying groups want to include restrictions in the new Market Structure Bill, but Brian Armstrong, CEO of the leading compliant U.S. CEX, publicly opposes this, considering it akin to using regulation to stifle competition. He even stated that he would prefer no bill at all rather than a version that weakens stablecoin innovation.

The White House responded swiftly. Patrick Witt, head of the Trump Digital Asset Committee, warned that if the industry obstructs legislation during this critical window, the U.S. could miss the opportunity to establish a globally leading crypto regulatory system. Several lawmakers also expressed similar concerns; Cynthia Lummis bluntly said that if the legislation is delayed until after the midterm elections, it could be postponed for another two years.

Meanwhile, the market is not waiting for Congress’s outcome. The New York Stock Exchange has already begun promoting tokenized securities platforms, demonstrating that traditional finance is actively embracing blockchain. The prospects for the U.S. Cryptocurrency Market Structure Bill now depend on whether the aforementioned CEX and banking industry can reach a compromise on stablecoin yields, which will also directly impact the U.S.’s position in the global digital financial race.