TLDR
- In its initial month, the Trump administration rolled out bold crypto-centered measures, instituting the Department of Government Efficiency (DOGE) with Elon Musk at the helm and installing regulators favorable to cryptocurrency.
- The Trump family initiated World Liberty Financial (WLFI), amassing $326 million in crypto assets, and debuted TRUMP and MELANIA memecoins on the Solana platform.
- Significant regulatory updates involved recommending Paul Atkins to succeed Gary Gensler at the SEC, forming a dedicated crypto task force, and unveiling a $500 billion AI project dubbed 'Stargate'.
- Trump granted clemency to Silk Road creator Ross Ulbricht and created a crypto task force aspiring to make the U.S. a world leader in cryptocurrency.
- Transformations in U.S. policy are accelerating global crypto acceptance, with institutions pledging long-term investments and banks reassessing cryptocurrency offerings.
During the initial 30 days of Trump's leadership, extensive alterations were made to U.S. cryptocurrency strategy via executive orders, federal appointments, and regulatory changes. From January 20 to February 19, 2025, the administration launched several initiatives that redefined federal digital asset strategies.
On the inauguration day, Trump's family made a significant entrance into the crypto world. The president introduced TRUMP, a memecoin on Solana, quickly amassing a $15 billion market cap before declining by 40%. Subsequently, First Lady Melania Trump launched her token, MELANIA. Their venture, World Liberty Financial (WLFI), invested $47 million in cryptocurrencies, reaching $326 million in total holdings.
The administration established the Department of Government Efficiency (DOGE) under Elon Musk's leadership. This new department faced immediate legal scrutiny from watchdog groups citing possible breaches of the Federal Advisory Committee Act, necessitating public participation in federal advisory entities.
Key regulatory agency changes began on January 21. Paul Atkins was suggested to replace Gary Gensler as chair of the SEC, alongside Mark Uyeda as Acting Chair. Under Uyeda, the SEC created a cryptocurrency task force headed by Commissioner Hester Peirce to draft clearer guidelines and registration mechanisms.
The administration introduced 'Stargate', a $500 billion private investment project aimed at advancing the U.S. AI sector. Key initial investors included OpenAI, SoftBank, and Oracle, though Elon Musk expressed doubts about their financial commitment.
On January 22, Trump pardoned Ross Ulbricht, the Silk Road founder, who had spent almost a decade imprisoned. This pardon fulfilled a campaign promise and came following advocacy from prison reform advocates and leaders within the crypto sector.
Federal Crypto Shift
Through an executive order on January 23, the president instituted a crypto working group, which excludes the Federal Reserve and Federal Deposit Insurance Corporation. This group will explore a national crypto reserve and formulate regulations. The initiative is spearheaded by David Sacks, the administration's head of AI and crypto.
With a 68-29 vote, the Senate confirmed Scott Bessent as Treasury Secretary on January 27. Known for his crypto-enthusiastic perspective, Bessent is optimistic about the administration's digital asset strategies aligning with Republican values.
February experienced market fluctuations as Trump put new tariffs into effect. On February 2, tariffs on imports from Mexico, Canada, and China led to declines in tech stocks and crypto markets. While levies on Mexico and Canada were temporarily halted, an additional 25% tariff on steel and aluminum imposed on February 9 further decreased Bitcoin's value.
Leadership modifications extended through February. On February 3, Trump dismissed Rohit Chopra as head of the Consumer Financial Protection Bureau. CFTC Chairman Rostin Behnam resigned on February 7, with Brian Quintenz, known for his crypto background, nominated as his successor.
On February 12, the U.S. arranged a prisoner swap with Russia, exchanging Alexander Vinnik, former head of crypto exchange BTC-e, for American educator Marc Fogel. Vinnik admitted to currency laundering in May 2024.
The Senate approved Howard Lutnick as Commerce Secretary with a 52-45 vote on February 19. As the former Cantor Fitzgerald CEO, Lutnick agreed to sell his Tether shares and other private interests within 90 days.
These strategic changes are causing worldwide repercussions. According to Bitpanda CEO Eric Demuth, U.S. policy shifts are compelling global markets to adjust, with institutions making long-term investments rather than speculative plays. Bitcoin ETFs have garnered nearly $58 billion in assets in just a year of trading.
Banks are adapting to this climate. Demuth predicts more U.S. banks will issue stablecoins, and tokenized asset growth, including government bonds and real estate, is expected. Allies of the administration in Congress are crafting stablecoin legislation to bring the industry 'onshore' to the U.S.
At the state level, legislators are investigating the creation of state-backed Bitcoin and crypto reserves. Under Musk's leadership, the DOGE department is reportedly evaluating the SEC's operations next, as per a February 17 Politico report.
