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Reading: EU Freezes US Trade Deal as Trump Pitches America as “World’s Crypto Capital
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Crypto News

EU Freezes US Trade Deal as Trump Pitches America as “World’s Crypto Capital

Last updated: January 22, 2026 10:00 pm
Published: 3 months ago
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Escalating tensions between Washington & Brussels are met with a new, aggressive pro‑crypto stance from Donald Trump.

In a new video, crypto YouTuber and XRP-focused commentator Levi links an escalating EU-US trade rift with a more aggressive pro‑crypto posture from Donald Trump, arguing the mix could be short‑term bearish but structurally bullish for digital assets.

The most immediate claim: the European Union has “officially…suspended their trade deal with the United States” in response to US tariff moves tied to Greenland and broader NATO‑ally tariff hikes of 10-25%.

While specific legal details are not provided, the creator frames it as a clear deterioration in transatlantic trade relations that is already feeding risk‑off sentiment across markets.

Donald Trump: “America Is Still The Crypto Capital”

At the World Economic Forum, Trump is shown emphasizing US economic dominance and then directly addressing digital assets. In a clip the creator plays, Trump says he is “working to ensure America remains the crypto capital of the world” and references having signed a “landmark Genius Act” into law, describing it as part of an effort to “unleash innovation and savings and financing.”

He adds that Congress is “working very hard on crypto market structure legislation…which I hope to sign very soon” signaling continued White House support for a federal framework that would govern Bitcoin and other cryptocurrencies.

The video also highlights a separate Trump claim: that $2,000 “tariff stimulus checks” could be issued to all Americans “without congressional approval.” The host calls that “the most crazy thing for crypto,” invoking the 2020-21 stimulus episodes and arguing that new direct payments would likely spill over disproportionately into risk assets.

Banks & Legislation: The Long Game For XRP

To make the longer‑term bullish case, the creator leans heavily on remarks from investor David Sacks, who says once US “market structure” legislation passes, “the banks are gonna get fully into the crypto industry.” Combined with BlackRock CEO Larry Fink’s repeated enthusiasm for real‑world asset tokenization, the video presents this as confirmation that institutional crypto integration is a matter of timing rather than direction.

In the near term, however, the host expects pressure on Bitcoin, XRP, and major altcoins as trade tensions deepen. He cites Bitcoin briefly dropping below $92,000, roughly $800 million in liquidations across crypto, and synchronized drawdowns in Ethereum, Solana, and XRP as evidence that tariff headlines are already pushing investors out of speculative assets.

Still, the XRP analyst argues that rising US GDP, strong equities and gold, along with pending crypto legislation & potential cash injections via tariff‑linked stimulus, create a macro backdrop that favors long‑horizon crypto holders who can endure volatility.

For crypto investors, especially XRP holders, the practical takeaway is bi-fold: expect heightened headline risk from an EU-US trade confrontation in the short run, but watch Washington’s crypto market‑structure push and any concrete movement on stimulus or bank participation as the real catalysts for the next leg of the cycle.

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