White House Digital Asset Advisor Patrick Witt stated that Davos 2026 has become a critical turning point for the global normalization of cryptocurrencies, with stablecoins playing the role of an “entry drug” leading traditional finance into the crypto world.
(Background recap: Standard Chartered: Stablecoins may withdraw US$50 billion in deposits from the US banking sector by the end of 2028, a structural crisis that cannot be ignored)
(Additional context: The US government is no longer selling Bitcoin! Bissett announced that 200,000 Bitcoin have been transferred into “strategic reserves”)

Table of Contents

• Davos Forum: The Stage for Cryptocurrencies
• Regulatory Progress and Legislative Layout
• Stablecoins: The “Entry” Tool for Global Finance
• Future Outlook: Taxation and International Situations

Recently, White House Digital Asset Advisor Patrick Witt pointed out in an interview that the 2026 Davos World Economic Forum marks a key moment for cryptocurrencies to enter mainstream global finance. He described stablecoins as the “entry drug” for global finance and emphasized that the US is actively promoting regulatory clarity to ensure healthy development of the crypto industry.

Davos Forum: The Stage for Cryptocurrencies

Witt said that this World Economic Forum is not only a gathering of economic leaders but also a stage for the Trump administration to showcase its digital asset policy stance. During the forum, President Trump reaffirmed that the US will become the “Global Cryptocurrency Capital,” establishing a long-term position for digital assets in financial markets.

Witt believes that the government is trying to establish a “symbiotic” relationship between traditional financial institutions and emerging crypto companies, allowing both to compete and coexist, ultimately benefiting consumers and promoting technological innovation.

Regulatory Progress and Legislative Layout

On the regulatory front, Witt pointed out that the US Congress is accelerating the push for digital asset legislation:

• The Senate Agriculture Committee will review parts of the Market Structure Act on January 29.
• The Senate Banking Committee has postponed review due to issues related to stablecoin rewards and ethics.

Witt stated that even with delays, legislation will eventually be coordinated and sent to the Senate for a vote, demonstrating the government’s confidence in advancing the bill.

Stablecoins: The “Entry” Tool for Global Finance

Witt observed that stablecoins are gradually helping traditional financial players understand the potential and risks of crypto technology. He noted that traditional players often go through a cycle of “disinterest → fear → adoption,” eventually integrating crypto into their product lines.

He believes that although some Republican senators worry that stablecoins might lead to bank deposit outflows, with patience and cooperation, a smooth transition is entirely possible. He emphasized, “When consumers have choices, they are the winners.” At the same time, the government hopes that the integration of crypto and traditional finance will be steady and market-stable.

Future Outlook: Taxation and International Situations

Witt revealed that once major market structure bills pass, the government will shift focus to promoting large-scale crypto tax reform plans. Additionally, he pointed out that the international digital asset situation, especially assets involved in national security actions—such as Venezuela’s case—is under close US government scrutiny. Witt remains cautious about specific details but emphasized that national security agencies are involved in related investigations.

In summary, Patrick Witt believes that Davos 2026 is an important milestone for the global normalization of cryptocurrencies. The US is ensuring healthy development of the crypto industry through regulatory clarity and policy guidance, maintaining a leading position on the global financial stage. Stablecoins, as the “entry drug,” not only influence technological adoption but also redefine the landscape of financial competition.