Trump's Effort to Make Crypto a Powerhouse for the United States Against China

President Donald Trump showcased America’s determined effort to become a global leader in the crypto industry, part of a broader strategy to prevent China’s rise in the digital asset sector. In his speech at the World Economic Forum in Davos, Switzerland, the former president highlighted how critical his support for laws aimed at strengthening the crypto ecosystem has been as part of the country’s national interest.

This effort began last year (2024) when he signed the landmark GENIUS Act, a law focused on providing a clear regulatory framework for stablecoins and other digital assets. It’s not just simple industry support—it’s a strategic move in geopolitical competition, according to Trump.

Why Crypto Is Critical to the US Strategy

Trump explicitly stated that crypto policy is one of his priorities for two main reasons. First, he saw political advantage—crypto companies and their stakeholders provided significant support, including hundreds of millions of USD to political action committees that made large donations in the 2024 elections and are preparing for the 2026 midterms.

But the deeper rationale is geopolitical. Like the AI industry, Trump believes the US should “lock in” the crypto market before China gains control. The message is clear: if the US doesn’t act, it will be a second mover in an industry that will become fundamental to the global economy.

The GENIUS Act and Next Steps in the Market

The administration’s efforts do not end with the GENIUS Act. The US Senate is currently reviewing more comprehensive market structure legislation through two congressional committees. Analysts expect one of the committees to release a draft bill as early as April, while the other has already voted and continues to study the law.

The proposed regulations aim to create a consistent framework for the market, providing clarity for businesses and investors. Trump said he hopes these laws will be signed “as soon as possible,” indicating momentum in the legislative process.

How the SEC Regulates Tokenized Assets

Alongside executive and legislative efforts, the Securities and Exchange Commission has released new regulatory guidance aimed at streamlining the framework for tokenized securities. The SEC makes a sharp distinction between two types of tokenized products:

Issuer-sponsored tokenized securities – Directly offered by companies representing actual ownership (equity ownership). These are easier to approve and regulate because they have a clear link to the underlying asset and issuer accountability.

Third-party synthetic products – Products that only offer exposure or custodial rights, not true ownership. The SEC has greater concerns about these, especially if targeted at retail investors, due to their higher risk profile.

The regulatory philosophy is clear: encourage issuer-controlled, fully transparent tokenization while reducing the proliferation of synthetic equity products among retail investors. It’s a balanced approach—support innovation while protecting consumers.

Real-World Application: Pudgy Penguins as an NFT-Native Brand

This effort is evident in real-world applications where traditional IP and blockchain converge. Pudgy Penguins has become one of the strongest NFT-native brands in this cycle, transitioning from speculative digital luxury goods to a comprehensive consumer IP platform.

The project’s strategy is sophisticated: initially attracting mainstream users through toys and retail partnerships, then onboarding them into Web3 via games, NFTs, and the PENGU token. The ecosystem now includes phygital products (over $13M in retail sales and more than 1M units sold), games with over 500K downloads in just two weeks, and widely distributed token airdrops to over 6M wallets.

Pudgy’s success proves that a well-executed tokenization strategy can generate sustainable value creation, where Web3 becomes a natural extension of consumer engagement rather than a separate speculative market.

The Bigger Picture: Systematic Efforts for Dominance

The combination of executive action (GENIUS Act), legislative initiatives (market structure bills), regulatory clarity (SEC guidance), and business innovation (Pudgy model) demonstrates a coordinated US effort to dominate the crypto landscape. This is not accidental—it’s a strategic response to global competition and the needs of the digital economy.

The message from Trump and the US government is energizing: crypto is not just a speculative asset but a critical infrastructure for the future. The effort to control and lead in this space will be a defining competition of the next decade.