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Bitcoin has fallen recently, but its status as a core asset of the US dollar has not been affected. With the trend of regulatory relaxation, US dollar assets are expected to maintain a volatile upward trend.
With the implementation of the Trump administration's crypto-friendly policies, the US crypto industry has ushered in unprecedented opportunities. Core institutions such as the Treasury Department, SEC, and CFTC are led by officials who support cryptocurrencies. The White House has established a digital asset working group , and Congress has established a crypto asset committee to promote the legalization and institutionalization of the industry. This policy orientation has boosted market confidence and accelerated the entry of mainstream financial institutions.
At the legislative level , the advancement of the FIT21 bill, the establishment of a stablecoin regulatory framework, and the softening of the SEC's enforcement attitude indicate that the crypto industry is bidding farewell to policy uncertainty and moving towards a more stable and sustainable development path. Although the short-term market may fluctuate due to the impact of the macro economy and the timing of policy implementation, the long-term trend is positive. The United States is accelerating the construction of the world's most competitive crypto financial ecosystem, and the industry is moving from the "Wild West" to the mainstream financial system.
1. The Trump administration appoints crypto-friendly officials, bringing development opportunities to the industry
1. Changes in leadership of key regulatory agencies
The Trump administration has demonstrated a crypto-friendly stance in its leadership arrangements at key financial regulators:
Treasury Secretary Scott Bessent: A hedge fund manager and cryptocurrency advocate, he supports Bitcoin and decentralized finance (DeFi), pushing the Treasury Department to relax regulation of crypto assets and give the industry more room in tax policy.
SEC Chairman/Paul Atkins: Former SEC Commissioner, supports free market development and reduces regulatory intervention. His appointment means that the SEC may reduce enforcement actions and promote free market development.
CFTC Chairman/Brian Quintenz: As a former CFTC commissioner, he supports loose regulation of crypto derivatives and DeFi, and expects the CFTC to encourage innovation rather than restrict industry development.
The appointments of these key officials have boosted market confidence as investors expect the U.S. regulatory environment to become more open.
2. White House Digital Asset Task Force
The Trump administration established the Presidential Working Group on Digital Asset Markets, led by David Sacks, White House Special Advisor on AI and Cryptography, and its members include the Secretary of the Treasury, the Attorney General, the SEC, the CFTC and other key regulatory agencies.
The goals of the working group include:
Develop a national regulatory framework for cryptocurrencies – unifying market structure, consumer protection and risk management rules.
Assess the feasibility of Bitcoin as a national reserve - submit relevant policy recommendations within 180 days.
Preventing the development of CBDC - explicitly prohibiting the Federal Reserve from developing central bank digital currency (CBDC) and maintaining the private digital currency market.
The establishment of this working group has enabled the United States to move towards becoming a global cryptocurrency center and has made policy advancement more systematic.
3. U.S. Senate Banking Committee: Establishment of Digital Asset Committee
On January 23, 2025, the Senate Banking Committee established a Digital Assets Committee, chaired by Senator Cynthia Lummis, to promote industry compliance: through bipartisan legislation, promote stablecoin regulation, market structure optimization, and promote Bitcoin as a national strategic reserve asset. Supervise financial regulatory agencies to prevent discriminatory suppression of cryptocurrencies, such as "Operation Chokepoint 2.0".
The Strategic Bitcoin Reserve Act proposed by Lummis suggests selling part of the Federal Reserve's gold reserves, purchasing 1 million bitcoins, and building a national bitcoin reserve, reflecting the Trump administration's emphasis on bitcoin.
Here is a list of crypto-related officials Trump has appointed since taking office:
name | Position | Claim |
JD Vance | Vice President | Vance has always been in favor of the crypto industry and has been critical of the U.S. Securities and Exchange Commission's (SEC) regulatory policies on crypto. There is a saying in the Silicon Valley venture capital circle: "The best way to deeply understand a person is to analyze his venture capital portfolio." In 2021, Vance's estimated net worth was $5 million, including assets and income. Then in 2022, according to his latest financial disclosure, he held $100,000 to $250,000 in Bitcoin on Coinbase and invested about $15,000 in DEX Ethex. It can be said that Vance is the first US presidential candidate to own Bitcoin. |
Scott Bessent | Cabinet/Minister of Finance | Bessent has a positive attitude towards cryptocurrency and once said that "cryptocurrency is about freedom" and believes that Bitcoin can attract young people and new investors and help cultivate American market culture. Bessent, who has a positive attitude toward cryptocurrencies and recently spoke out against the issuance of central bank digital currencies, will also be a member of the new “President’s Task Force on Digital Asset Markets” established by Trump in an executive order issued on January 23. |
Paul Atkins | SEC/Chairman | Atkins is CEO of Patomak Global Partners LLC, a firm that advises financial firms and cryptocurrency companies. He is co-chair of the Token Alliance, a cryptocurrency industry lobbying group launched by the Chamber of Digital Commerce. Paul Atkins has long advocated the adoption of a less restrictive regulatory framework for emerging technologies, such as cryptocurrencies and blockchain, believing that such a framework can promote innovation and reduce regulatory barriers that hinder their development, thereby promoting the development of the crypto field and bringing huge innovation and development opportunities to the financial market. Atkins advocates for a coordinated regulatory framework and calls for reducing overlapping and cumbersome regulations that could stifle innovation. He believes that the regulation of blockchain and crypto markets is not just a matter for the federal government, but also involves many other jurisdictions, and it is necessary to pay attention to regulatory differences between different jurisdictions. |
Hester Peirce (“Crypto Mom”) | SEC/Cryptocurrency Task Force/Leader | Hester Peirce is currently a member of the SEC and also the head of the SEC's crypto working group. She has a significant impact on the SEC's subsequent crypto policies. Recently, Peirce pointed out that the crypto industry needs to be given greater regulatory clarity, and also released a statement titled "There Must Be Some Way Out of Here", which mainly expounds on some of his views on crypto policies. The article has a somewhat relaxed attitude towards the entire custody rules. In addition, it clearly distinguishes tokenized securities and recognizes compliance, including considering revising the current securities law to support "programmable securities", which may directly promote the outbreak of RWA. The trend of the entire SEC turning to rule-making is clear, and the compliance costs and enforcement intensity that come with it may change simultaneously. If it is actually implemented, it will be more beneficial to the industry as a whole. |
Landon Zinda | SEC/Cryptocurrency Task Force/Member | Landon Zinda has resigned from his position as policy director at cryptocurrency advocacy group Coin Center to join the U.S. Securities and Exchange Commission’s (SEC) cryptocurrency task force. On Feb. 4, SEC Acting Chairman Mark Uyeda announced Zinda as his legal counsel and senior advisor to the cryptocurrency task force. The former Coin Center director will work on the task force led by Commissioner Hester Peirce, along with Chief of Staff Richard Gabbert and Chief Policy Advisor Taylor Asher. |
Brian Quintenz | Commodity Futures Trading Commission (CFTC)/Chairman | Brian Quintenz is the former policy director of the crypto department of a16z. CFTC Acting Chairman Pham said in a statement that she and Quintenz had worked together on a number of important initiatives during his tenure as a CFTC commissioner, and she believed that he would achieve the same success in the field of cryptocurrency and innovation. |
David O. Sacks | White House Special Advisor for Cryptocurrency and Artificial Intelligence (Crypto Czar) | Early interviews with David O. Sacks reveal his deep insight and firm belief in the cryptocurrency industry. As early as 2018, David O. Sacks joined the advisory board of the core team of the decentralized trading protocol 0x. Later, in February 2020, Harbor was acquired by digital asset custodian Bit Go. David O. Sacks once said in an interview with CNBC that Harbor solves the compliance issues of asset tokenization and has a huge opportunity for blockchain to bring more liquidity and transparency to private securities. |
Tom Emmer | U.S. Digital Assets, Fintech, and Artificial Intelligence Subcommittee/Vice Chairman | Emmer said he believes the United States has a "great opportunity" to lead the future of digital assets. Emmer has been an active supporter of the cryptocurrency space and has introduced cryptocurrency-focused bills in the past few years, including one aimed at clarifying the classification of digital assets. |
Bo Hines | Presidential Digital Asset Advisory Committee/Executive Director | Bo Hines serves as head of the newly formed Crypto Advisory Board, reporting directly to David Sacks. Bo will work with David to promote innovation and growth in the digital asset space while ensuring that industry leaders have the resources they need to succeed. Hines received funding from a pro-cryptocurrency PAC for his 2022 congressional campaign. According to Business Insider, some of the funding came from former FTX executive Ryan Salame, who is currently serving a seven-and-a-half-year prison sentence after pleading guilty to multiple charges, including conspiracy to make illegal political donations. |
Bryan Steil | Digital Asset Working Group/Chair | House Financial Services Committee Chairman French Hill, along with Reps. Dan Meuser, Andy Barr, and Bryan Steil, urged the Federal Deposit Insurance Corporation (FDIC) to impose clearer regulations on digital assets. |
Cynthia Lummis | Senate / Banking Committee / Digital Assets Committee Chairman | Support the use of Bitcoin as a national reserve asset and promote clarification of the regulatory classification of cryptocurrencies. |
2. US encryption bill ushered in a turning point, regulation was relaxed, and the industry moved towards the mainstream
1. SEC regulation is relaxed, giving the crypto industry some breathing space
The SEC’s recent policy adjustments indicate a softening of its regulatory stance:
Dropping enforcement actions against crypto giants: Terminate investigations and lawsuits against Uniswap Labs, Robinhood Crypto, OpenSea, Coinbase, Gemini, and others.
Recognize the non-securities attributes of Memecoin: allow some tokens to avoid securities regulations and promote market innovation.
Strengthen industry communication: SEC Commissioner Uyeda acknowledged that past supervision relied too much on law enforcement and pledged to promote policy transparency and engage in dialogue with major companies and leaders in the industry.
These measures have freed the U.S. encryption industry from frequent law enforcement pressure and enabled it to develop in a more stable and healthy direction.
2. Stablecoin legislation is on the agenda, and market confidence is enhanced
On February 5, U.S. Senator Bill Hagerty proposed a stablecoin regulation bill to include stablecoins such as USDT and USDC in the Federal Reserve's regulatory framework and provide compliance operation guidelines. The bill has received support from bipartisan lawmakers and is seen as a key step for the crypto market to move towards the mainstream financial system. After its passage, the legitimacy and security of stablecoins will be greatly improved, and it is expected to attract more traditional financial institutions to enter the market and promote further development of the industry.
3. Revocation of SAB121, loosening of crypto accounting policies
On January 24, the SEC officially revoked the SAB121 crypto accounting policy, making the financial treatment of crypto asset custody business more flexible. Previously, the policy required custodians to include customer crypto assets in their balance sheets, increasing compliance costs and operational pressure. After the policy adjustment, banks, exchanges and financial institutions can provide crypto asset custody services more freely, reducing barriers for institutional investors to enter the market .
4. FIT21 Act: The crypto market has a clear regulatory framework
On May 22, 24, the FIT21 Act was passed by the House of Representatives, which was regarded as a historic breakthrough for the U.S. crypto industry. The bill resolved the long-standing differences between the SEC and the CFTC on cryptocurrency regulation and made it clear that:
Regulatory powers of the SEC and CFTC: End the chaotic regulatory situation and provide a unified regulatory framework.
Cryptocurrency securities and commodities classification standards: Resolving core legal disputes and avoiding regulatory overlap.
Clarify token issuance and trading rules: provide practitioners with clear compliance guidance and reduce uncertainty.
Promote DeFi regulatory research: Promote the integration of decentralized finance (DeFi) with the mainstream market.
The advancement of this bill will gradually legalize and institutionalize the U.S. crypto market and enhance market confidence. The United States may become the world's most competitive crypto financial center.
4. Conclusion: The crypto industry is moving towards the mainstream and ushering in a golden period of development
After the Trump administration came to power, the policy environment for the U.S. crypto industry has undergone fundamental changes. The regulatory attitude has shifted from high pressure to friendly, and market confidence has increased significantly. The government has gradually clarified the regulatory framework for the crypto industry through the appointment of key officials, the establishment of a digital asset working group, and the promotion of congressional legislation, providing a more stable policy environment.
The SEC has relaxed its enforcement, stablecoin regulation has accelerated, and the FIT21 bill has been successfully passed by the House of Representatives. The crypto market is rapidly moving towards legalization and institutionalization. As favorable policies continue to be implemented, the corporate innovation environment is further opened up, and investor confidence is enhanced, stablecoins, DeFi, custody and other fields may usher in a new round of growth.
The United States is accelerating the consolidation of its position as the global crypto-financial center. The industry's golden development period is about to arrive, and it is an inevitable trend for cryptocurrencies to move towards the mainstream financial system.
