The Trump 2.0 Era: An Overview of Cryptocurrency Regulation Changes in the First 8 Weeks of His Administration – ChainCatcher
Author: Weilin, PANews
Since Trump officially began his second presidential term on January 20, the regulatory landscape for cryptocurrencies in the United States has been tightly packed with “drama” and peaks. In just eight weeks, from the resignation of the SEC chairman to Trump signing two executive orders—announcing the development of a digital asset plan and officially declaring a Bitcoin strategic reserve—followed by the White House hosting its first digital asset summit, the crypto market has continuously reacted, fluctuating with various policy changes. It can be said that the entire industry is both excited and anxious.
This article will review these significant cryptocurrency regulatory measures categorized by different policies and interpret their far-reaching impacts on the crypto industry.
Trump’s Executive Order on “Strengthening American Leadership in Digital Financial Technology”
On January 23, just three days into his presidency, Trump signed the executive order on “Strengthening American Leadership in Digital Financial Technology,” proposing the establishment of a “Presidential Digital Asset Market Working Group” to explore federal regulatory measures for stablecoins and related plans for a national digital asset reserve, explicitly prohibiting the “establishment, issuance, circulation, or use” of central bank digital currencies (CBDCs).
SEC Chair Transition and Major Regulatory Strategy Adjustments
In July of last year, at the Bitcoin 2024 conference held in Nashville, Trump promised to remove the SEC chairman Gary Gensler, who had been criticized by the crypto industry, on his first day in office. On November 22, 2024, the SEC announced that Gary Gensler would resign on Trump’s first day in office. He officially stepped down on January 20 of this year, succeeded by Paul Atkins, CEO of Patomak Global Partners LLC and former SEC commissioner, whose nomination is currently awaiting congressional confirmation.
On January 22, the SEC immediately established a special working group for cryptocurrencies, began adjusting regulatory strategies, reduced the group responsible for cryptocurrency enforcement actions, and reassigned some lawyers. The SEC also launched a website for the cryptocurrency special working group, with leader Hester Peirce listing ten priority tasks focused on reviewing the classification and regulation of crypto assets.
On January 24, the SEC announced in its latest staff accounting announcement No. 122 that it would revoke the much-criticized crypto accounting policy SAB 121. SAB 121 (Staff Accounting Bulletin No. 121) required digital asset custodians to treat digital assets as liabilities and report them at fair value on the balance sheet. The cryptocurrency industry was generally concerned that it could prevent banks from custodying digital assets, effectively excluding banks from the crypto market.
Additionally, on May 22 of last year, the FIT21 Act passed in the House, seen as a historic breakthrough for the U.S. crypto industry. This act addresses the long-standing differences between the SEC and CFTC regarding cryptocurrency regulation and is currently progressing.
SEC’s Collective Dismissal of Cases Against Crypto Companies
On February 27, the SEC terminated its investigation into Gemini Trust without taking enforcement action. Prior to this, the SEC had withdrawn its lawsuit against Coinbase and terminated investigations into OpenSea, Robinhood, and Uniswap. In the seventh week of Trump’s presidency (March 3 to March 9), the SEC agreed to dismiss its lawsuit against Kraken without requiring a fine or admission of wrongdoing, and Kraken’s business model remained unaffected.
Redefining “Exchange” and Overturning IRS’s DeFi Broker Rules
On March 11, news emerged that the SEC was evaluating a proposal to redefine “exchange,” which could provide clearer guidance for the regulatory framework of U.S. crypto trading platforms.
Meanwhile, the U.S. House of Representatives passed a resolution overturning the IRS’s broker rules for decentralized finance (DeFi) platforms. This rule required crypto entities to collect specific taxpayer and transaction information, which DeFi platforms found difficult to enforce. Previously, the U.S. Senate had voted to approve the resolution, but due to budget rules, it needed to be voted on again before being sent to President Trump for signing.
Pardon for Silk Road Founder Ross Ulbricht
On January 22, Trump fulfilled another promise made at the Bitcoin 2024 conference by pardoning Ross Ulbricht, the founder of Silk Road, who had been sentenced to life in prison without parole. Ross Ulbricht later expressed his gratitude to Trump on Twitter, who released him after 11 years of imprisonment.
Appointments of Crypto-Friendly Officials in SEC, CFTC, Treasury, and Commerce Departments
On January 20, after the presidential inauguration ceremony, the White House announced that the newly sworn-in President Trump had appointed Republican Mark Uyeda as acting chairman of the SEC. Previously, Trump had announced the nomination of Paul Atkins as SEC chairman.
In the second week of Trump’s presidency, the Senate confirmed his nominee for Treasury Secretary, Scott Bessent, who has an open attitude towards cryptocurrencies.
In the fourth week, Trump nominated a new chairman for the Commodity Futures Trading Commission (CFTC), Brian Quintenz, a former CFTC commissioner and executive at the event betting market Kalshi, to lead the regulatory agency.
In the fifth week, billionaire Howard Lutnick was confirmed as the next Secretary of Commerce, prompting the market to focus on how he would influence the regulatory environment for cryptocurrencies.
In both the Senate and House, there are also crypto-friendly officials in key positions. On January 23, the Senate Banking Committee established a Digital Assets Committee, chaired by Senator Cynthia Lummis, to promote industry compliance. On March 3, House Republican leaders and Congressman Ritchie Torres jointly formed the “Congressional Crypto Caucus” to promote legislation favorable to the crypto industry and create a voting coalition in the House supporting digital assets.
Official Announcement of Strategic Bitcoin Reserves and Digital Asset Reserves
In the sixth week of his presidency (February 24 to March 2), Trump announced five major categories of crypto strategic reserves on social media, stating that the U.S. cryptocurrency strategic reserves would include BTC, ETH, XRP, SOL, and ADA. The inclusion of ADA sparked controversy, with some market participants jokingly referring to it as “advertising space.” However, on March 7, AI and crypto mogul David Sacks stated that ADA, SOL, and XRP were mentioned because they are among the top five cryptocurrencies by market capitalization.
On the morning of March 7, the strategic Bitcoin reserves promised by Trump were announced! David Sacks announced on platform X that President Trump had officially signed an executive order to establish strategic Bitcoin reserves and digital asset reserves. However, since both reserves primarily rely on “proceeds from criminal or civil asset forfeiture” for funding support, the market reacted negatively in the short term to the prices of tokens like BTC, although there was a slight rebound later.
In addition to the president’s executive order, in terms of congressional legislation, on March 12, U.S. Senator Cynthia Lummis reintroduced the Bitcoin bill (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025) in the 119th Congress, which would allow the U.S. government to hold over 1 million Bitcoins. This bill was initially proposed in July 2024, requiring the U.S. government to purchase 200,000 Bitcoins annually over five years, funded by adjustments to existing funds from the Federal Reserve and the Treasury. After this revision, the U.S. government could hold additional Bitcoins through legal means (including civil or criminal forfeiture, donations, or transfers from federal agencies).
Hosting the First White House Digital Asset Press Conference and Digital Asset Summit
In the third week of Trump’s presidency (February 3 to February 9), David Sacks held the first press conference on digital assets on Capitol Hill with several U.S. lawmakers, detailing the latest plans for the White House and Congress to develop digital assets in the U.S. Sacks expressed hope to collaborate with congressional lawmakers, boldly announcing the goal of “creating a golden age for digital assets.”
On March 7, the U.S. held its first White House Digital Asset Summit, where President Trump delivered a brief speech. He stated, “Last year, I promised to make the U.S. a global Bitcoin superpower and the world’s crypto capital. We are taking historic actions to fulfill that promise,” and suggested, “From today onward, the U.S. will follow the rules that every Bitcoin holder knows—never sell your Bitcoin.”
Trump mentioned that he would terminate the Biden administration’s “Kill Switch 2.0” against the crypto industry. However, despite reports from the scene that the summit was recognized by industry leaders, the meeting did not lead to a price increase for assets like Bitcoin and Ethereum, and the cryptocurrency market saw a significant decline after the summit.
Market Welcomes a Surge in Crypto ETF Applications
As of March 12, tokens with ETF applications include at least DOGE, LTC, HEAR, SOL, XRP, SUI, AVAX, DOT, LINK, ADA, APT, AXL, and others. According to Bloomberg analysts James Seyffart and Eric Balchunas, the current market has a relatively high probability of approval for spot ETFs for LTC, DOGE, SOL, and XRP. Expectations for other mainstream crypto assets to launch ETFs in the U.S. capital markets have significantly increased.
With significant personnel changes at the SEC, its policies are becoming more favorable towards cryptocurrencies. If the U.S. launches altcoin ETFs, it could directly inspire other countries and regions around the world to follow suit. Bloomberg analysts expect the SEC to make a decision on proposed altcoin ETFs in October this year.
Senate Hearing on “Debanking” Sparks Widespread Discussion
On the evening of February 5, the U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing on “Investigating the Real Impact of Debanking on America.” Witnesses included Nathan McCauley, co-founder and CEO of Anchorage Digital; Stephen Gannon, partner at Davis Wright Tremaine LLP; Mike Ring, president and CEO of Old Glory Bank; and Aaron Klein, senior fellow in economic studies at the Brookings Institution. The hearing explored the impact of bank account closures and restrictions on financial services on businesses and individuals, and examined related policy responses.
On February 11, during the Senate Banking Committee hearing, Federal Reserve Chairman Jerome Powell stated that given the criticism of the crypto industry being excluded from banking services, it was time to “revisit” the issue of debanking. Senate Banking Committee Chairman and South Carolina Republican Senator Tim Scott asked Powell if he agreed to commit to working with lawmakers to end debanking; Powell agreed. Discussions on “debanking” are expected to continue further this year.
U.S. States Show Strong Interest in Bitcoin Reserves
As of March 4, 24 U.S. states had proposed draft bills for crypto reserves, with most bills still in the draft or proposed for legislative review stage. A few states, such as Texas and Utah, have made faster progress, while five states (Pennsylvania, Montana, North Dakota, Wyoming, and South Dakota) have seen related bills rejected. The reasons for rejection include concerns about risks and volatility associated with digital assets, taxpayer fund risks, high energy consumption of cryptocurrency mining, and the potential for digital currencies to be used for illegal activities.
Leading the way, Texas’s Senate previously passed SB 21, which stipulates the creation of a state-managed fund to hold Bitcoin and other cryptocurrencies. The Texas State Auditor will be responsible for overseeing the reserve, which will hold cryptocurrencies with a market value of at least $500 billion and be eligible for state budget allocations.
Legislation Surrounding Stablecoin Regulatory Framework
On February 5, U.S. Senator Bill Hagerty introduced the stablecoin regulatory bill (GENIUS Act), bringing stablecoins like USDT and USDC under the Federal Reserve’s regulatory framework and providing compliance operation guidelines. As of March 12, the U.S. Senate has updated the bill, which particularly expands the “reciprocal terms for overseas jurisdictions paying stablecoins.”
During the White House summit, Trump instructed his policy executors to promote stablecoin legislation and planned to complete it before the August congressional recess. The initial goal was to submit the legislation within the first 100 days of his term, but this timeline has now been extended by four months.
Conclusion
Overall, in the eight weeks since Trump took office, there have been a series of significant adjustments in U.S. cryptocurrency regulation, with changes in policy direction and key personnel indicating a more open regulatory environment. Whether the U.S. can truly become the world capital of cryptocurrencies, as Trump claims, remains uncertain, and market reactions are cautious, necessitating continued attention to future regulatory directions.
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