What Has President Trump Done for Crypto?

Introduction

The Trump administration has a complicated relationship with crypto. Over the course of his presidential campaign, Trump promised to foster a favorable regulatory climate for cryptocurrency and even pledged to make the US the “crypto capital” and “Bitcoin superpower” of the planet. While investors were optimistic about the future of crypto after Trump's re-election in November, his actions as president and a private citizen have left many despondent. Follow along to learn about areas where Trump has followed through on his ambitions for cryptocurrency and others where he has fallen short of expectations. 

Where Trump Has Followed Through

Soon after his re-election, Trump began acting on his so-called crypto-friendly agenda. He selected Paul Atkins, a “strong” backer of cryptocurrencies, as the new chair of the Securities and Exchange Commission, named Solana enthusiast David Sacks his AI and crypto czar, and instituted a Council of Advisers on Digital Assets. 

Since his inauguration, Trump has signed a number of cryptocurrency-related executive orders, including one which created a Strategic Bitcoin Reserve and US Digital Asset Stockpile. At the White House's first ever Digital Assets Summit in March, Treasury Secretary Scott Bessent remarked that these accounts would "position the United States as a leader among nations in the digital asset strategy." 

Trump's administration has since made commitments to work alongside the SEC to clarify how new tokens can be issued legally and continued to express interest in pushing landmark legislation regulating cryptocurrency. One notable upcoming piece of legislation is the STABLE Act, which is expected to pass this spring and establish a proper regulatory framework for stablecoins. 

Where Trump Has Fallen Short

Until the Trump administration passes the STABLE Act, however, its impact on cryptocurrency remains largely symbolic. While a presidential acknowledgment of the role of cryptocurrency in the American and global economy is beneficial, it will have a limited impact on cryptocurrency in the long run.

Additionally, Trump’s aggressive trade agenda has complicated his efforts to provide support for cryptocurrency investors. His "Liberation Day" tariffs, announced earlier this month, triggered a sharp downturn in crypto markets, with Bitcoin falling 10% before recovering. Coinbase, the largest US cryptocurrency exchange, also suffered its worst quarterly performance in two years, with its stock tumbling 15% after the tariff news. While tariffs could, in theory, weaken the dominant role of the dollar and increase demand for cryptocurrencies, crypto prices remain susceptible to macroeconomic uncertainty, and all markets will be challenging to predict until trade wars de-escalate.

Another large concern for cryptocurrency investors is that the Trump administration’s policies may favor a small number of companies and individuals, undermining the decentralized nature of many cryptocurrencies and, perhaps more importantly, the general public's perception of cryptocurrency as a whole.

These policies present a particularly worrying conflict of interest because they benefit President Trump himself. He now has ties to a memecoin, multiple NFT projects, a stablecoin, and a DeFi protocol. The latter, titled World Liberty Financial (WLF), is at least 60% owned by members of the Trump family. Earlier this month, executives at the cryptocurrency exchange Binance, which is exploring a business deal with WLF, met with Treasury Department officials to discuss loosening US government oversight.

Conclusion

Overall, Trump’s second-term agenda has clearly shaken up the crypto landscape. In seeking to strengthen the legitimacy of digital assets, he risks allegations of acting in his own self-interest. For crypto supporters, the Trump administration has ushered in a long-awaited moment of recognition and policy engagement. On the other hand, critics worry that Trump's volatile trade decisions, regulatory ambiguity, and conflicts of interest could ultimately do more harm to crypto than progress. Only time will tell whether his legacy in the space will be one of empowerment or exploitation.