The landscape of the US financial system and geopolitics experienced a significant shift this week. In Washington, regulators are preparing to integrate banking and crypto, while in Davos, President Trump eased transatlantic tensions with a surprise announcement regarding Greenland.
Trump in Davos: No Use of Military Force
During his keynote address at the World Economic Forum (WEF) on Thursday, President Donald Trump stated that the United States would not use military force to take control of Greenland. His remarks marked a turning point after weeks of speculation that had strained diplomatic relations.
Trump emphasized that the US had no intention of using force and framed Washington’s interest in Greenland as strategic rather than coercive. He portrayed the issue as a matter of national interest rather than territorial aggression.
At the same time, Trump underscored Greenland’s importance to US national security, describing it as a strategic location for his proposed “Golden Dome” missile defense system. He also criticized European allies, arguing that Denmark had shown a lack of appreciation by rejecting acquisition talks. Trump further reminded the audience of the US role in World War II, suggesting that Europe’s postwar reality would have been very different without American intervention.
New Breakthrough: Framework Deal with NATO & Tariff Rollback
Market tensions eased immediately after Trump announced that the US had reached a framework for a future agreement covering Greenland and the broader Arctic region. The breakthrough followed what he described as a productive meeting with NATO Secretary General Mark Rutte.
As part of the diplomatic progress, Trump confirmed that tariff threats previously directed at European countries opposing the Greenland plan had been withdrawn. This decision provided much-needed clarity for global markets and helped improve investor sentiment.
Domestic Vision: One Digital Asset Industry
Meanwhile, in Davos, White House “Crypto Czar” David Sacks continued to outline the US vision for its digital economy. He reiterated that the longstanding divide between Wall Street and the crypto sector was expected to disappear.
Sacks argued that banking and crypto would ultimately converge into a single digital asset industry. He also projected that US banks would begin offering yield-bearing stablecoins once the CLARITY Act, a long-awaited market structure bill, is enacted.
CFTC Launches “Future Proof” Initiative
In Washington, Commodity Futures Trading Commission (CFTC) Chair Mike Selig responded to the modernization push by launching the “Future Proof” initiative.
The program formally signaled a shift away from regulation by enforcement, with priorities including updating rules for 24/7 digital markets, adopting a lighter regulatory approach to support innovation, and increasing oversight of the rapidly expanding prediction markets sector.
Legislative Delays Continue
Despite swift action from the executive branch, Congress continues to move more slowly. The Senate Agriculture Committee postponed final discussions on the crypto market structure bill until January 27, 2026, to further refine DeFi oversight provisions. Nevertheless, easing geopolitical tensions in Davos and clearer regulatory signals from the CFTC have contributed to a more optimistic industry outlook.
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