President Trump seeks to establish the U.S. as the global “crypto capital” through executive orders that support the crypto industry, reviewing and potentially reversing previous policies under the Biden administration. A Working Group has been set up to formulate a comprehensive regulatory framework for digital assets. New appointments in key regulatory roles signal a shift toward more supportive crypto regulation, while ongoing state regulations and compliance requirements remain significant challenges for firms in the crypto space.
President Trump aims to establish the U.S. as the global “crypto capital”. His administration is promoting the crypto sector through strategic executive actions, including the reversal of certain Biden-era regulatory policies. Steps include implementing a comprehensive regulatory framework for digital assets and blockchain technologies, demonstrating a commitment to boost the U.S. crypto industry.
On January 23, 2025, Trump signed an executive order focused on supporting digital assets. The order creates a Working Group chaired by David Sacks, designated as the “Crypto and AI Czar.” Comprising senior officials from various departments, the group will draft a comprehensive federal framework for digital assets and assess the potential for a national digital asset reserve, including the possibility of a Bitcoin reserve.
The Working Group, tasked with reviewing existing regulations, is expected to propose modifications or the removal of outdated policies affecting the crypto industry within 60 days. Notably, this includes the repeal of Biden’s Executive Order 14067 to remove barriers hampering blockchain and crypto asset markets while enhancing regulatory clarity for market participants.
On January 21, 2024, the SEC announced the formation of a “Crypto 2.0” task force designed to establish a clear regulatory framework. Under Hester Peirce’s leadership, the task force aims to rectify prior enforcement actions that failed to adequately regulate crypto and will work closely with federal officials and public stakeholders to refine and enhance regulations.
Key appointments under Trump indicate a more crypto-friendly regulatory environment. David Sacks, as “Crypto and AI Czar,” is focused on establishing a legal framework for the crypto industry to achieve the clarity necessary for its growth. Additionally, former SEC commissioner Paul Atkins is poised to assume leadership at the SEC, promising a different approach than his predecessor, with an emphasis on regulatory clarity and support for innovation.
The Trump administration’s new Treasury Secretary, Scott Bessent, has shown enthusiasm for blockchain and digital assets. Unlike Janet Yellen’s scepticism, Bessent will likely endorse policies that foster innovation while maintaining appropriate oversight.
Federal banking regulators, under Trump’s leadership, are expected to re-evaluate previous scrutiny on banking operations with the crypto sector. Appointed officials are advocating for transparency and accessible banking services for crypto activities, suggesting a shift towards facilitating banking partnerships with crypto companies.
Congress is contemplating the Financial Innovation and Technology for the 21st Century Act (FIT21), which would classify cryptocurrencies as commodities and assign authority over spot markets and decentralised blockchain-associated assets appropriately. While the passage of this legislation remains uncertain, there’s notable bipartisan interest to clarify crypto regulations.
However, companies will still face challenges from state regulators amidst the shifting federal landscape. States like New York require adherence to their specific licensing regimes, and enforcement from state authorities is expected to remain robust, particularly against fraudulent activities.
Despite potential decreases in federal regulation, compliance remains critical for crypto firms. Companies must maintain rigorous anti-money laundering practices and ensure alignment with existing regulations and compliance obligations. Momentum towards a clearer regulatory path for digital assets is building, but companies must stay proactive amidst these dynamics to secure their operational footing in the evolving landscape.
