Trump 2.0 Era: What New Changes Are Coming for Cryptocurrency Regulation?
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Trump 2.0 Era: What New Changes Are Coming for Cryptocurrency Regulation?
Review of key policy adjustments in the first eight weeks in office.
Navigating Web3 tides with focused insightsAuthor: Weilin, PANews
Since Donald Trump officially began his second presidential term on January 20, the U.S. cryptocurrency regulatory landscape has been packed with dramatic developments. Within just eight weeks—from the departure of the SEC chair to Trump signing two executive orders announcing a digital asset development plan and a strategic Bitcoin reserve, to the White House hosting its first-ever digital assets summit—the crypto market has continuously reacted, fluctuating amid policy shifts. The entire industry is both excited and anxious.
This article outlines these significant regulatory moves by policy category and analyzes their profound implications for the crypto industry.
Trump Signs Executive Order on "Strengthening American Leadership in Digital Financial Technologies"
On his third day in office, January 23, President Trump signed an executive order titled "Strengthening American Leadership in Digital Financial Technologies." It proposed establishing a "Presidential Task Force on Digital Asset Markets" to explore federal regulation of stablecoins and plans for a national digital asset reserve. The order explicitly bans the "creation, issuance, circulation, or use" of a central bank digital currency (CBDC).
SEC Chair Transition and Major Regulatory Shifts
Last July at the Bitcoin 2024 conference in Nashville, Trump pledged to remove SEC Chair Gary Gensler—widely criticized by the crypto industry—on his first day in office. On November 22, 2024, the SEC announced that Gensler would step down when Trump took office. He officially left on January 20. His successor is 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 Crypto Task Force to begin adjusting its regulatory approach, downsizing the team previously responsible for crypto enforcement actions and reassigning several lawyers. The SEC also launched a website for the Crypto Task Force, with leader Hester Peirce outlining ten priority tasks focused on reviewing the classification and regulation of crypto assets.
On January 24, the SEC released Staff Accounting Bulletin No. 122 (SAB 122), revoking SAB 121—a policy heavily criticized by the crypto industry. SAB 121 required digital asset custodians to treat digital assets as liabilities on their balance sheets at fair value. The crypto industry feared this rule could deter banks from holding digital assets, effectively excluding traditional banking from the crypto market.
Prior to this, on May 22 last year, the FIT21 bill passed the House of Representatives, marking a historic breakthrough for the U.S. crypto industry. The bill resolves long-standing jurisdictional disputes between the SEC and CFTC over crypto regulation and is currently advancing through Congress.
SEC Drops Multiple Lawsuits Against Crypto Firms
On February 27, the SEC terminated its investigation into Gemini Trust without taking enforcement action. Earlier, the SEC had withdrawn its lawsuit against Coinbase and ended investigations into OpenSea, Robinhood, and Uniswap. In Trump’s seventh week in office (March 3–9), the SEC agreed to dismiss its case against Kraken—without requiring any fines, admissions of wrongdoing, or changes to Kraken’s business model.
Re-Defining “Exchange” and Overturning IRS DeFi Broker Rule
On March 11, news emerged that the SEC is evaluating a proposal to redefine the term “exchange,” which could provide clearer regulatory guidance for U.S. crypto trading platforms.
Meanwhile, the U.S. House of Representatives passed a resolution overturning the Internal Revenue Service (IRS) broker rule for decentralized finance (DeFi) platforms. That rule required crypto entities to collect specific taxpayer and transaction data—something difficult for DeFi protocols to implement. Previously, the Senate had voted to pass the resolution, but due to budget rules, it must be re-voted before being sent to President Trump for signature.
Pardon of Silk Road Founder Ross Ulbricht
On January 22, Trump fulfilled another promise made at the Bitcoin 2024 conference by pardoning Ross Ulbricht, founder of Silk Road, who had been serving a life sentence without parole. Ulbricht later expressed gratitude to Trump on X, thanking him for releasing him after 11 years in prison.
Appointment of Pro-Crypto Officials Across SEC, CFTC, Treasury, and Commerce Department
On January 20, following his inauguration, the White House announced that newly sworn-in President Trump appointed Republican member Mark Uyeda as acting chair of the Securities and Exchange Commission (SEC). Prior to that, Trump had nominated Paul Atkins for the permanent SEC chair position.
In Trump’s second week, the Senate confirmed Scott Bessent, a prominent financial figure with an open stance toward cryptocurrencies, as the new Treasury Secretary.
In the fourth week, Trump nominated Brian Quintenz, former CFTC commissioner and executive at prediction market firm Kalshi, to lead the Commodity Futures Trading Commission (CFTC).
In the fifth week, billionaire Howard Lutnick was confirmed as the next Secretary of Commerce, prompting market speculation about how he might shape the crypto regulatory environment.
In Congress, pro-crypto leaders have also taken key positions. On January 23, the Senate Banking Committee established a Subcommittee on Digital Assets chaired by Senator Cynthia Lummis to advance industry compliance. On March 3, House Republican leadership and Congressman Ritchie Torres jointly launched the "Congressional Crypto Caucus," aiming to promote favorable legislation and build a voting coalition in support of digital assets.
Announcement of Strategic Bitcoin and Digital Asset Reserves
In his sixth week in office (February 24–March 2), Trump announced five categories for America's strategic crypto reserves via social media: BTC, ETH, XRP, SOL, and ADA. ADA’s inclusion sparked controversy, with some market participants jokingly calling it a "paid placement." However, on March 7, David Sacks, AI and cryptocurrency advisor to the administration, clarified that ADA, SOL, and XRP were included because they are among the top five largest cryptocurrencies by market capitalization.
Early on March 7, Beijing time, the promised strategic Bitcoin reserve became official. David Sacks announced on X that President Trump had formally signed an executive order establishing a Strategic Bitcoin Reserve and a broader Digital Asset Reserve. However, since both reserves will primarily be funded through "civil or criminal asset forfeitures," the market reacted negatively in the short term, with prices of BTC and other tokens dipping initially before recovering slightly.
Beyond the executive order, legislative efforts are also underway. On March 12, Senator Cynthia Lummis reintroduced the Bitcoin Bill (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025) in the 119th Congress. This bill would allow the U.S. government to hold over one million bitcoins. Originally introduced in July 2024, it calls for the government to purchase 200,000 BTC annually for five years using reallocated funds from the Federal Reserve and Treasury. The revised version allows the government to legally acquire additional Bitcoin through civil or criminal forfeiture, donations, or transfers between federal agencies.
White House Hosts First Digital Assets Press Conference and Summit
In Trump’s third week (February 3–9), David Sacks and several members of Congress held the first press conference on digital assets at Capitol Hill, detailing the White House and Congress’s latest plans for advancing digital asset development. Sacks declared ambitions to “create a golden age for digital assets” and emphasized cooperation with lawmakers.
On March 7 local time, the U.S. held its first-ever White House Digital Assets Summit. President Trump delivered brief remarks, stating: “Last year, I promised to make America the global superpower in Bitcoin and the world capital of cryptocurrency. We are taking historic actions to fulfill that promise.” He added: “From today onward, America should follow the rule every Bitcoin holder knows—never sell your Bitcoin.”
Trump also stated that the Biden-era “Operation Choke Point 2.0,” widely seen as hostile to the crypto industry, would be terminated. Although reports indicated strong approval from industry leaders present at the summit, no immediate price surge followed for Bitcoin, Ethereum, or other major assets. Instead, the crypto market saw a notable decline afterward.
Surge in Applications for Crypto ETFs
As of March 12, tokens with active ETF applications include DOGE, LTC, HEAR, SOL, XRP, SUI, AVAX, DOT, LINK, ADA, APT, and AXL. According to Bloomberg analysts James Seyffart and Eric Balchunas, the likelihood of approval for spot ETFs of LTC, DOGE, SOL, and XRP is relatively high. Market expectations for mainstream altcoin ETFs launching on U.S. capital markets have significantly increased.
With major personnel changes at the SEC and a shift toward more crypto-friendly policies, if the U.S. approves altcoin ETFs, it may prompt similar moves globally. Bloomberg analysts project the SEC will make decisions on proposed altcoin ETFs by October this year.
Senate Holds Hearings on "Debanking," Sparking Widespread Debate
On the evening of February 5, the U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing titled “Investigating the Real Impact of Debanking on Americans.” 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 examined how account closures and financial service restrictions impact individuals and businesses and discussed potential policy responses.
On February 11, during another Senate Banking Committee hearing, Federal Reserve Chair Jerome Powell said it was time to “re-evaluate” debanking practices, given criticism that the crypto industry has been excluded from banking services. When asked by committee chair Senator Tim Scott of South Carolina whether he would commit to working with lawmakers to end debanking, Powell agreed. Discussion around “debanking” is expected to intensify throughout the year.
U.S. States Show Growing Interest in Bitcoin Reserves
As of March 4, 24 U.S. states have introduced draft legislation proposing crypto reserves. Most bills remain in early stages—either recently introduced or under committee review—while a few states like Texas and Utah have made rapid progress. Five states (Pennsylvania, Montana, North Dakota, Wyoming, and South Dakota) have rejected related proposals, citing concerns over risks associated with digital assets, volatility, taxpayer exposure, high energy consumption from mining, and potential use in illegal activities.
Texas leads the way: its Senate passed SB 21, which establishes a state-managed fund to hold Bitcoin and other cryptocurrencies. The Texas Comptroller will oversee the reserve, which aims to hold at least $50 billion worth of crypto and qualify for state budget appropriations.
Legislation on Stablecoin Regulatory Framework Advances
On February 5, Senator Bill Hagerty introduced the GENIUS Act, bringing stablecoins like USDT and USDC under Federal Reserve oversight and providing compliance guidelines. As of March 12, the Senate has updated the bill, expanding provisions on “reciprocal arrangements for payment stablecoins issued in foreign jurisdictions.”
At the White House summit, Trump instructed his policy team to push forward stablecoin legislation, aiming for passage before Congress adjourns in August. The original goal was to introduce the bill within his first 100 days, but the timeline has now been extended by four months.
Conclusion
Overall, in the first eight weeks of Trump’s presidency, the U.S. has undergone a series of major shifts in crypto regulation—from policy direction to key appointments—all pointing toward a more open and supportive regulatory environment. Can America truly become the global hub for cryptocurrency as Trump envisions? While uncertainty remains and market reactions have been cautious, the trajectory of future regulation will require ongoing attention.
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