Trump addresses the crypto bill at Davos, but the reality behind CLARITY facing cold reception in the Senate

Trump stated at the World Economic Forum in Davos that Congress is working on regulations for the cryptocurrency market structure and hopes to sign the crypto legislation as soon as possible. While this stance appears positive, the reality is more complex. Just two days ago, the so-called crypto-friendly CLARITY Act faced resistance in the Senate, and the crypto market itself also declined due to Trump’s tariff threats, with risk appetite sharply cooling down. There is a clear tension between the ideal policy push and market realities.

The Duality of Policy Promotion

Positive attitude but slow progress

Trump’s remarks in Davos sent a clear signal: the government supports cryptocurrency legislation. However, this contrasts with the setbacks faced by the CLARITY Act. According to the latest news, this highly anticipated bill by the crypto community encountered resistance in the Senate, and its progress is not smooth. This reflects a reality: presidential support does not guarantee smooth passage of the bill. Political disagreements in Congress and the tug-of-war among various interest groups will influence the final legislative outcome.

The complexity of the regulatory framework

The “cryptocurrency market structure regulation” mentioned by Trump involves multiple dimensions. It requires defining the legal status of crypto assets and coordinating the jurisdictional responsibilities of agencies like the SEC and CFTC. This complexity means that even with political will, the legislative process could take longer.

Market Background Pressures

The current crypto market faces multiple pressures. Trump announced tariffs on eight European countries (planned to increase from 6% to 25% starting in June), which has heightened geopolitical risks. Data shows Bitcoin quickly fell from $97,000 to around $92,000, Ethereum dropped below $3,200, and approximately $593 million in liquidations occurred across the network. Analysts point out that this decline is driven by both Trump-related uncertainties and rising expectations of a “hawkish” shift in the Federal Reserve’s new chair nomination.

Under this market sentiment pressure, the progress of crypto legislation faces the risk of declining public attention. Investors may focus more on macro risks and market volatility rather than policy details.

Perspective

Trump’s remarks are indeed a positive signal, but should not be overinterpreted. The final signing of the crypto bill depends on multiple factors: political support in Congress, coordination among interest groups, cooperation from regulatory agencies, and market stability. The current market decline and political disagreements could delay the legislative process.

Summary

Trump’s call for crypto legislation at Davos reflects government support, but there is still a long way to go before actual signing. The cold reception of the CLARITY Act in the Senate reminds us that there is a significant gap between political promises and legislative reality. The crypto market is currently under pressure from geopolitical risks and macroeconomic uncertainties, which also affect the prioritization of the bill. In the short term, the market is more concerned with risk appetite recovery than the details of legislation. Policy advancement takes time, and investors should view this process rationally.