How are U.S. crypto companies responding to Trump's new strategy?
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How are U.S. crypto companies responding to Trump's new strategy?
A growing field is moving from chaos to common standards, from closed systems to open, ethical innovation.
Navigating Web3 tides with focused insightsAuthor: Sean Lee, Former CEO of Algorand Foundation
Translation: Felix, PANews
Cryptocurrency has long operated in the gray area between innovation and regulation. As the United States pushes to establish a regulatory framework, the crypto industry is facing a pivotal moment that could unlock scale, capital, and global influence.
During collaboration with the Crypto Council for Innovation, after multiple dialogues with industry leaders and hearing diverse perspectives, a turning point emerged: an upcoming framework will guide the next phase of cryptocurrency development.
Redefining U.S. Crypto Policy and Enhancing Regulatory Clarity
On the third day of his second term, President Trump signed a comprehensive executive order. Issued on January 23, the "Strengthening American Leadership in Digital Financial Technology" order revoked a directive signed by Biden in 2022, shifting from a primarily enforcement-driven stance to a proactive governance-focused strategy. On March 6, Trump signed another executive order establishing a Strategic Bitcoin Reserve. Comprised of bitcoins seized in criminal cases, this reserve will not be sold but held as a long-term strategic asset.
The U.S. SEC restructured its cryptocurrency regulatory efforts into a "Cyber and Emerging Technologies Division," positioning it as the central hub for long-term rulemaking, and formed a task force to develop a "comprehensive and clear regulatory framework." SEC Chair Hester Peirce stated the goal is to allow businesses to "freely experiment and build interesting things." Deputy Attorney General Todd Blanche ordered the immediate dissolution of the National Cryptocurrency Enforcement Team (NCET). This decision, outlined in a four-page memo titled "Ending Regulation by Prosecution" on April 7, marks a sharp departure from the previous administration's approach.
The Stablecoin Bill (GENIUS Act), first introduced in February 2025, represents Washington’s first serious attempt to bring stablecoins under a clear, federally backed regulatory framework. At the time of writing, the total value of stablecoins in global circulation is approximately $243 billion, over 90% of which are denominated in U.S. dollars. The bill proposes strict standards for reserves, audits, and transparency for stablecoins, while prohibiting claims of government backing. Although the GENIUS Act did not pass in May, it sparked rare bipartisan cooperation and paved the way for future consumer-focused cryptocurrency legislation.
The impact so far has been evident: crypto market trading activity has surged and investor enthusiasm has reignited. For example, the $3.6 billion merger between bitcoin firm Twenty One Capital and a special purpose acquisition company (SPAC) led by Brandon Lutnick, son of Commerce Secretary Howard Lutnick, reflects current market sentiment—confident, speculative, and ready to expand. Companies are moving swiftly to leverage this environment favorable to innovation, public listings, and digital asset growth.
This shift in tone has not gone unnoticed: it has already changed how businesses approach infrastructure, legal strategy, and institutional trust.
Regulatory Clarity Fuels New Energy for Infrastructure Expansion
Changes in policy tone have triggered tangible transformations. Batyr Hydyrov, CEO of Uminers, sees the SEC’s recent stance on proof-of-work mining as a catalyst: "The SEC clarifying that certain proof-of-work mining activities are not subject to securities regulation may reduce compliance burdens for miners. This shift, along with broader changes in crypto regulation, creates new opportunities to accelerate the most ambitious parts of our roadmap."
For Hydyrov, establishing a national strategic Bitcoin reserve is a significant catalyst: "Creating a national strategic Bitcoin reserve signals growing institutional acceptance of cryptocurrency, which could further encourage investment in mining infrastructure."
Nonetheless, Hydyrov remains cautious: "We are gradually increasing targeted investments, especially in areas previously seen as high regulatory risk. However, we maintain a prudent stance—regulatory cycles themselves are unpredictable... We don’t view the current situation as a reason to slow down or become complacent, but rather as an opportunity for careful expansion and preparation for potential shifts in global policy."
Legal Adjustments and Fair Access
As regulatory uncertainty clears, the legal frameworks governing market participation are being redefined. Frank Hepworth, founder of Yieldschool and former regulatory lawyer, believes the policy shift provides structural green light for decentralized models: "This is a signal. On-chain businesses do not want their tokens traded on platforms regulated by the SEC... The government is implicitly allowing businesses with competitive advantages to enter the market. With reduced risk of penalties, more companies can be expected to choose on-chain operations."
He argues this transformation is disrupting traditional regulatory systems: "Several prominent crypto lawyers, like Gabriel Shapiro, have commented that this administration may be bad for their niche, but great for the industry overall... I agree with this view."
But Hepworth’s sharpest criticism targets outdated access rules: "Voluntary compliance is healthy... but mandatory regulation leads to unequal outcomes, which is precisely why wealth inequality persists in America." What is his vision? "The regulatory system should be crypto-native and built around crypto as a foundational element."
Thus, as legal frameworks loosen and on-chain innovation accelerates, the next barrier becomes psychological: institutional trust. The industry is currently at this stage, self-governing and setting its own standards.
Transparency as a Tool Against Uncertainty
Even as regulation becomes clearer, it remains incomplete. During this transition, actively building trust is essential. GT Protocol, led by Peter Ionov, operates at this frontier: "Yes, the trend toward deregulation sends mixed signals to the market. On one hand, loosening regulatory controls is often seen as a green light for innovation... On the other hand, the lack of a clear regulatory framework still worries institutional participants."
Peter Ionov says investor reactions remain divided: "It largely depends on the type of investor. More agile, risk-tolerant entities... may see this as an opportunity window. In contrast, traditional financial institutions... often remain cautious, waiting for greater clarity."
Currently, market-driven approaches to building trust are promoting responsible innovation, especially in sectors aiming to modernize traditional systems: "The entire industry is shifting toward trust mechanisms centered on transparency... Companies are opening source code, publishing audit reports, and partnering with licensed providers."
Lighter Regulation as an Economic Catalyst
As transparency strengthens investor confidence and legal innovation expands access, the stage is set for the next phase: scaling bold ideas. For Construct Koin, this means leveraging AI and blockchain technology to transform real estate finance. Co-founder Chris Baldrey-Chourio explains: "Reducing regulatory burden doesn't mean abandoning rules. It means creating space for real-world solutions."
Yet, with global competitors like the EU and Singapore accelerating their crypto strategies, he issues a warning: "The U.S. currently holds a lead, but without action, this advantage won’t last." He also notes the growing momentum worldwide around central bank digital currencies and stablecoin standards.
Cautious about overexpansion, he believes that reduced enforcement, combined with collaboration, can catalyze experimentation: "We need regulators and builders on the same side." "Only then can breakthroughs happen while protecting consumers."
And this dialogue must be built on shared principles and ethics, not just shared interests.
Focusing on Ethics Amid Policy Shifts
Andrea Perlak, CPA and founder of Crypto Accounting Group, elaborates on this topic, stating: "Organizations and individuals within the Web3 industry have committed to high ethical standards since its inception... Unethical behavior in this space is abhorrent, and in such a tight-knit community, reputational damage is long-lasting."
She rejects the fallacy that "decentralization means chaos": "Decentralization and accountability are not mutually exclusive concepts... Through transparency, multi-layered governance, and incentive mechanisms, these systems thrive."
As Perlak points out, the narrative of deregulation misses the mark: "The idea that crypto regulation is being relaxed is a misunderstanding... The previous administration was dominated by 'regulation by enforcement'... Once proper legislation arrives, the industry will finally breathe easier."
In the end, as practical frameworks emerge, the industry is no longer shying away from regulation—but is ready to embrace it on solid ground.
Conclusion
Together, these voices reflect a maturing field moving from chaos toward shared standards, from closed systems to open, ethical innovation. If the industry seizes this moment—leading with transparency, ethics, and inclusivity—not because it is forced to, but because it is the right thing to do—it has the potential to redraw the blueprint of modern finance.
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