Trump Plans to Sign Crypto Bill, Coinbase Raises Concerns

Key Points on the CLARITY Act:

U.S. President Donald Trump expressed optimism at the World Economic Forum in Davos about signing the CLARITY Act, aimed at structuring the crypto market.
The Act has faced controversy due to fears it may stifle innovation and favor traditional banks over cryptocurrencies.
Trump emphasized the importance of the U.S. maintaining its position as a crypto leader to prevent China from dominating the market.
Senator Cynthia Lummis supports advancing the CLARITY Act.

Industry Response:

Coinbase CEO Brian Armstrong voiced opposition to the bill's current form, citing concerns about bans on tokenized equities, DeFi prohibitions, and anti-privacy measures.
Armstrong criticized the erosion of the Commodity Futures Trading Commission's authority and restrictions on stablecoin yields.
Despite objections, Armstrong expressed hope for a collaborative solution.

Market Impact:

Bitcoin fell below $90,000, triggering significant market liquidations amid uncertainty about the legislation.
This marked the second consecutive day of substantial long-position liquidations, following nearly $900 million in liquidations earlier.