Donald John Trump has finally chaired the US President role for the second time after winning elections in 2024. One of the indisputable factors behind Trump’s win is his support of the crypto industry. Trump re-election impact on crypto will be favorable to the industry, bringing clear regulations.
What has started as a niche industry, enthused by tech geeks, has now grown into a trillion-dollar industry impacting global politics and the financial landscape. With Trump taking oath as the 47th President of the US, the crypto industry is anticipating clear regulations and a major push toward mainstream adoption. He even signed a crypto executive order recently to bring clear regulations and to evaluate a crypto national reserve.
The crypto industry is set to witness a major shift with Trump’s re-election as the US President. We will discuss more on how the landscape of the crypto industry shifts under Trump’s administration in the US, in the present article.
Donald Trump’s Historical Stance on Crypto
Trump’s stance on crypto was not always the same. When he was elected as the US President for the first time in 2016, there was not a single mention of crypto in his campaign.
The crypto industry was much more in nascent stages than today and officials didn’t seem to pay attention to the industry. With an overall crypto market cap close to $13 billion, Bitcoin was trading at around $600 USD in 2016. By the time, Trump took oath as the 45th President of the US in January, 2017, Bitcoin price came close to $1,000.
Donald Trump made a first-ever public statement on Bitcoin and cryptocurrencies in 2019 through one of his tweets. He stated he’s not a fan of Bitcoin or cryptocurrencies and they are not money. Furthermore, he opined the only real currency in the USA that is stronger, reliable, and dependable is the United States Dollar.
While Donald Trump disregarded Bitcoin and cryptocurrencies, several industry officials celebrated it, saying the crypto industry has grown enough to have been noticed by the US President. While Coinbase CEO posted, “Achievement unlocked,” crypto entrepreneur Simon Dixon congratulated the BTC community since crypto became worthy of a tweet by the US President.
A Harvard report published in 2019 detailed the roadmap for a crypto crackdown under Trump’s administration. Donald Trump also told his Treasury Secretary to go after Bitcoin earlier. Even after the end of his term in 2021, Trump said Bitcoin seems like a scam and he would like the US Dollar to be the currency of the world.
180° Shift in Donald Trump’s Crypto Perspective
Fast forward to 2024, Donald Trump promised to make the “US a crypto capital of the planet” during his election campaign. In fact, this is one of the biggest factors that increased the odds of Trump’s election as the President over opponent Kamala Harris.
From stating that the only real currency in the USA is the United States Dollar to signing a crypto executive order to form clear regulations, Donald Trump shifted his stance on crypto by 180°. After all, the industry grew exponentially from a mere $12 billion market cap to around $3.5 trillion overall market cap today. On the other hand, Bitcoin is no longer trading in the 3-4 digit price range.
The crypto industry demanded attention from top officials and made its way into US politics, having millions of crypto holders in the US. While crypto has influenced US politics, the involvement of top pro-crypto officials such as Donald Trump also has a strong impact on the industry in return.
Trump Re-election Impact on Crypto
To fulfill his promise of bringing clear crypto regulations, Donald Trump has made several moves even before his inauguration as the US President. After consideration, Trump assembled a pro-crypto team and appointed several officials to work on crypto regulation and adoption. The following are some of the noteworthy pro-crypto candidates.
- Paul Atkins – The new SEC Chair under Trump’s administration, former SEC commissioner.
- David Sacks – White House AI and Crypto Czar, and former PayPal COO.
- Bo Hines – Executive Director of the Crypto Council.
- Sriram Krishnan – Senior Policy Advisor for AI.
- Stephan Miran – Chair of the Council of Economic Advisers.
The New Crypto Executive Order
Days after Donald Trump’s inauguration as the US President, he signed a crypto executive order, putting an end to the harsh approach of the earlier Biden administration. The EO focuses on multiple things starting with the formation of a Presidential Working Group under David Sacks, to strengthen the US position in digital finance. It includes,
- The Working Group to develop a Federal regulatory framework on digital assets and evaluate the feasibility of a strategic national digital asset stockpile, under David Sacks, and other leaders.
- The Working Group will be advised by leading experts and will be informed by the industry expertise beyond the US FED.
- The Group revokes recommendations to the Working Group that affect the digital asset industry.
- The prohibition of agencies from developing or issuing Central Bank Digital Currencies (CBDCs).
- It revokes the previous digital asset executive order and Treasury Department’s framework which suppressed innovation and development of the crypto industry.
Trump’s Crypto Projects
Trump launched a crypto project, World Liberty Financial (WLF), sling with his family. Within just a few months after the launch, WLF has partnered with several renowned crypto projects and invested millions of dollars into established cryptocurrencies.
Being the crypto project backed by the US President, other industry leaders are keen on forming a strategic partnership with WLF. Tron founder Justin Sun made headlines multiple times for being an adviser to Trump’s project and the largest holder of WLFI tokens.
In addition, Trump also launched memecoins under his and his wife’s name a couple of days before the inauguration. The memecoins TRUMP and MELANIA gathered significant attention from the industry, making billions within less than 24 hours after the launch. While proponents supported this move to bring legitimacy to the industry, several top voices such as Arthur Hayes criticized Trump for launching a memecoin.
The Trump Effect
Keeping the regulatory approach and Trump’s crypto projects aside, the crypto market responded positively to Trump’s election. Following Trump’s win in Nov 2024, Bitcoin recorded an ATH, surpassing the much-awaited 6-digits, $100,000.
Since then, Bitcoin and other altcoins have recorded new ATH values, popularly called “The Trump Effect” in the industry. Bitcoin recently reached a new ATH of $109,026.02 on Trump’s inauguration day Jan 20, 2025. Even digital asset fund inflows have recorded a significant rise in values, $2.2B in the 3rd and $1.9B in the 4th weeks of Jan 2025.
What Does the Crypto Future Look Like in 2025?
As Trump promised, the industry is anticipating a clear regulatory framework, which legitimizes the industry and accelerates mainstream adoption. The newly signed crypto executive order is evidence that Trump is not a mere man of words but a man of actions, and is actively working towards the Federal framework development on digital assets.
Apart from the regulatory framework, Trump re-election impact on crypto will also include a strategic Bitcoin reserve after a complete evaluation of its pros and cons by the Working Group. Several US states, including global countries, are already pushing for a strategic Bitcoin reserve to counteract the devaluing of fiat currencies. Furthermore, institutional investment will increase further, expediting the mainstream adoption of cryptocurrencies.
Trump’s direct involvement in crypto with projects like the TRUMP memecoin and WLF, the gap between the US government and the crypto sectors has further narrowed. If it continues, we can expect to see more US leaders and top officials from other countries invest in crypto and launch their own crypto projects.
Once the US administration legalizes a national digital asset reserve, it will bring complete transparency and legitimacy to the crypto industry and make it powerful enough to redefine the global financial ecosystem. Even though it may not happen this year, 2025 remains one of the historical years for the crypto industry in the future!
