21 Aug
21Aug

Under the Donald Trump presidency, the position of crypto in the U.S. economy has undergone a dramatic shift. Once a vocal critic of digital assets, Trump has rebranded himself as the "Crypto President," working to transform America into the global "crypto capital."

From Critic to Proponent

Trump's change of heart is one of the most surprising turns in crypto policy. After previously calling Bitcoin a "scam," he has actively courted the crypto community. During his presidential campaign, he launched NFT collections, supported crypto fundraising, and promised to end Washington's hostile stance toward the industry. This strategy helped him secure a significant voter base from the crypto community.

Key Policy Changes and Legislation

Upon taking office, Trump signed an executive order, “Strengthening American Leadership in Digital Financial Technology,” which replaced previous restrictive policies with a clear strategy to support digital assets. This order established a "Working Group on Digital Asset Markets," led by the White House's "Crypto and AI Czar," David Sacks, alongside leaders from the SEC and CFTC.

The administration has also pushed for significant legislative changes, including:

  • The GENIUS Act: This bill, which prohibits the U.S. Federal Reserve from developing a Central Bank Digital Currency (CBDC), was a major win for the crypto industry.
  • The CLARITY Act: This law requires regulatory agencies to review and reverse rules that hinder innovation. As a result, the SEC reversed its Staff Accounting Bulletin 121, which had prevented banks from offering crypto custody services.
  • A National Digital Asset Reserve: The government is now holding seized Bitcoin as a long-term strategy rather than auctioning it off.

A significant outcome of this new approach is the passage of the GENIUS Act, which focuses on stablecoins. It mandates that all stablecoins must be 100% backed by U.S. dollars or short-term Treasuries, and issuers must publish monthly reserve reports and undergo regular audits. This move has strengthened confidence and expanded the reach of the U.S. dollar in cross-border finance.

Economic Effects and Future Outlook

While Trump’s crypto policies have been largely positive for the industry, his broader trade policies, such as sweeping tariffs on imports, have introduced some market volatility. Despite this, analysts believe that if the tariffs weaken the U.S. dollar, Bitcoin could gain appeal as a hedge, especially given the rising institutional adoption through ETFs.

August 2025, Cryptoniteuae

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