The Trump 2.0 Era: What's New in Crypto Regulation? Take stock of the key policy adjustments in the first 8 weeks in office

Author: Weilin

 

Since Donald Trump officially began his second presidential term on January 20, the regulatory landscape for cryptocurrencies in the United States has been unfolding like a dramatic script, filled with twists and turns. Within just eight weeks, a series of significant events have taken place: the resignation of the SEC chairman, Trump signing two executive orders—one outlining a digital asset development plan and another announcing Bitcoin as a strategic reserve—followed by the White House hosting its first digital asset summit. The cryptocurrency market has been responding continuously, fluctuating with each policy change, leaving the industry both excited and on edge.

 

This article will categorize and review these major cryptocurrency regulatory initiatives and analyze their profound impact on the industry.

 

Trump Signs Executive Order on Strengthening U.S. Leadership in Digital Financial Technology

 

On January 23, just three days into his presidency, Trump signed an executive order titled "Strengthening U.S. Leadership in Digital Financial Technology". The order established the "Presidential Digital Asset Market Task Force" to explore federal regulatory measures for stablecoins and national digital asset reserves. Additionally, it explicitly prohibited the "creation, issuance, circulation, or use" of Central Bank Digital Currencies (CBDCs).

 

SEC Leadership Change and Major Regulatory Shifts

 

During the Bitcoin 2024 conference held in Nashville last July, Trump pledged to remove SEC Chairman Gary Gensler on his first day in office. On November 22, 2024, the SEC announced that Gensler would step down on Trump's inauguration day. As of January 20, he officially resigned, with Paul Atkins, CEO of Patomak Global Partners LLC and former SEC commissioner, nominated as his successor, pending congressional confirmation.

 

On January 22, the SEC immediately established a Crypto Special Task Force, adjusting regulatory strategies by downsizing its crypto enforcement unit and reassigning some lawyers. A new Crypto Task Force website was launched, with its lead, Hester Peirce, outlining ten priority tasks, focusing on asset classification and regulatory oversight.

 

On January 24, the SEC withdrew SAB 121, a controversial crypto accounting policy that required digital asset custodians to record crypto holdings as liabilities at fair value. Many in the industry feared it would exclude banks from crypto custody services.

 

Additionally, the FIT21 Act, which passed the House on May 22, 2024, marked a historic breakthrough in U.S. crypto regulation, resolving long-standing disputes between the SEC and the CFTC. The bill is still progressing through the legislative process.

 

SEC Withdraws Lawsuits Against Crypto Companies

 

On February 27, the SEC ended its investigation into Gemini Trust without taking enforcement action. Prior to this, the SEC had also withdrawn its lawsuit against Coinbase and ceased investigations into OpenSea, Robinhood, and Uniswap. During the seventh week of Trump's term (March 3–9), the SEC agreed to drop its lawsuit against Kraken, without fines or admissions of wrongdoing, and Kraken’s business model remained unaffected.

 

Redefining "Exchange" and Overruling IRS's DeFi Broker Rule

 

On March 11, reports emerged that the SEC was evaluating a proposal to redefine "exchange", potentially providing clearer regulatory guidance for U.S. crypto trading platforms.

 

Meanwhile, the U.S. House of Representatives passed a resolution overturning the IRS's DeFi broker rule, which mandated that crypto entities collect taxpayer and transaction data. The Senate had already voted to repeal this rule, but due to budgetary requirements, another vote is needed before Trump can sign it into law.

 

Trump Pardons Silk Road Founder Ross Ulbricht

 

On January 22, fulfilling another promise from the Bitcoin 2024 conference, Trump pardoned Ross Ulbricht, the founder of Silk Road, who had been serving a life sentence without parole. Ulbricht later expressed gratitude to Trump on Twitter after being released from prison after 11 years.

 

Crypto-Friendly Officials Appointed to Key Agencies

 

On January 20, following the presidential inauguration, Trump appointed Mark Uyeda as the acting SEC chairman and nominated Paul Atkins as the new SEC chairman.

 

During Trump's second week in office, the Senate confirmed his nominee for Treasury Secretary, Scott Bessent, a pro-crypto finance executive.

 

By the fourth week, Trump nominated former CFTC commissioner Brian Quintenz as the new CFTC Chairman.

 

In the fifth week, billionaire Howard Lutnick was confirmed as Commerce Secretary, raising speculation about his impact on crypto regulation.

 

In Congress, several crypto-friendly officials took key positions. On January 23, the Senate Banking Committee established a Digital Assets Committee, chaired by Senator Cynthia Lummis, to advance regulatory compliance. On March 3, House Republicans and Representative Ritchie Torres announced the formation of the Congressional Crypto Caucus to push for pro-crypto legislation.

 

Announcing Strategic Bitcoin & Digital Asset Reserves

 

During the sixth week of his presidency (Feb 24–Mar 2), Trump announced five strategic crypto asset categories: BTC, ETH, XRP, SOL, and ADA. ADA’s inclusion sparked debate, with some dismissing it as "advertising space." On March 7, AI and crypto policy advisor David Sacks clarified that ADA, SOL, and XRP were included because they were among the top five cryptocurrencies by market cap.

 

On March 7, Trump officially signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Reserve. However, since these reserves are primarily funded by "civil or criminal asset forfeitures," the market reacted negatively in the short term before a slight recovery.

 

White House Holds Digital Asset Press Conference & Summit

 

During the third week of Trump’s presidency (Feb 3–Feb 9), David Sacks and several lawmakers held a digital asset press conference on Capitol Hill, outlining the administration's vision for a new crypto era.

 

On March 7, the first White House Digital Asset Summit was held. Trump reiterated his commitment to making the U.S. the world’s Bitcoin superpower, stating: "From today on, America will follow the one rule that every Bitcoin holder knows—never sell your Bitcoin."

 

Crypto ETF Applications Surge

 

As of March 12, ETF applications for DOGE, LTC, HEAR, SOL, XRP, SUI, AVAX, DOT, LINK, ADA, APT, and AXL had been filed. Bloomberg analysts James Seyffart and Eric Balchunas suggest that LTC, DOGE, SOL, and XRP spot ETFs have the highest chance of approval. The SEC’s new leadership could accelerate global adoption of altcoin ETFs.

 

Senate Hearings on "Debanking"

 

On February 5, the Senate Banking Committee held a hearing on "Debanking," featuring experts discussing the impact of financial service restrictions on businesses and individuals. On February 11, Fed Chairman Jerome Powell acknowledged the need to re-evaluate "debanking" policies, agreeing to collaborate with lawmakers to address the issue.

 

U.S. States Express Interest in Bitcoin Reserves

 

As of March 4, 24 U.S. states had proposed crypto reserve legislation, though five states (PA, MT, ND, WY, SD) rejected such measures due to concerns over volatility, taxpayer risks, and illicit activities.

 

Stablecoin Regulatory Framework Legislation

 

On February 5, Senator Bill Hagerty proposed the GENIUS Act, placing USDT and USDC under Federal Reserve oversight. Trump aims to pass stablecoin legislation by August.

 

Conclusion

 

Over the past eight weeks, the U.S. has seen major regulatory shifts under Trump’s leadership. While his administration moves towards a pro-crypto stance, the market remains cautious, and future regulatory developments require close observation.

 

This article is sourced from Foresight News:

https://foresightnews.pro/article/detail/80172

AIC TeamMarch 21, 2025