President Trump’s first 100 days mark a sharp turnaround for the crypto industry, with executive actions and strategic appointments signalling a more welcoming environment compared to the Biden years. Industry leaders praise the administration’s commitment to integrating crypto into the financial system, amid ongoing challenges from the Federal Reserve. Overall, there’s a sense of optimism as the groundwork is laid for innovation in digital assets.
In a notable turnaround, President Trump’s first 100 days in office this week have brought big changes for the cryptocurrency industry, reversing many of the policies established during the Biden administration. His push to establish the U.S. as the “crypto capital of the world” is being met with enthusiasm from industry players, particularly following a series of appointments at key financial regulatory positions. Coinbase executives hailed the administration’s methodical and bipartisan approach, noting that it aims to integrate crypto into the expansive $100 trillion capital markets.
Despite Trump’s approval ratings sitting at a precarious 43%, the crypto community is buoyed by the new direction. Notably, Trump has rekindled interest in a Strategic Bitcoin Reserve, although he quickly scaled back the idea from broader digital currencies to focus solely on bitcoin. Critics argue the proposal poses risks for taxpayer dollars, yet Trump assures that no public funds will back the initiative.
The crypto industry is also grappling with the implications of Trump’s family members engaging in crypto projects, which has raised eyebrows. Nic Carter of Castle Island Ventures expressed concern about optics, but generally, industry stakeholders favour the administration’s current crypto-friendly stance over any lingering skepticism.
At the Office of the Comptroller of the Currency, Jonathan Gould has indicated support for new banking charters tailored for crypto firms—a move that would have been almost unthinkable under Biden. Carter anticipates a surge of new crypto-focused banks as a result of these regulatory changes, marking a significant shift in how crypto companies can interact with traditional banking systems.
The FDIC is also adapting under interim chair Travis Hill, working to dismantle what some insiders term symptomatic of “Choke Point 2.0,” a push by previous regulators to limit crypto access to banks. Meanwhile, new SEC chair Paul Atkins stands in stark contrast to former chair Gary Gensler by working closely with crypto stakeholders to clarify regulations surrounding token issuance. This is a notable departure from the enforcement-heavy approach seen prior.
Atkins opened a crypto roundtable just days into his tenure in an effort to foster dialogue with industry participants, which many see as a fundamental shift in the SEC’s approach. The recent end of a prolonged lawsuit against Ripple signals a new era of cooperation and potential clarity on crypto regulations, with advocates like Veronica McGregor calling it a refreshing shift towards a more open dialogue.
Trump has appointed Brian Quintenz to lead the Commodity Futures Trading Commission, a move signalling that the administration is committed to advancing its crypto agenda. However, significant hurdles remain, as the Federal Reserve continues to enforce strict limitations on banks’ interactions with the crypto realm, casting doubt on future developments in that area.
Despite these challenges, the crypto landscape has witnessed what Coinbase’s legal head described as a “flipping of the script”. The administration is not just welcoming digital assets but actively seeking to integrate them into existing financial structures, with discussions about tokenizing the equities market already underway.
With 73% of U.S. crypto holders advocating for the U.S. to assert leadership in the crypto space, there’s a palpable sense of optimism. This sentiment reflects a broader desire for the government to support innovation rather than stifle it through litigation. Support for bitcoin mining, highlighted by CEO Fred Thiel, indicates an eagerness to position the U.S. positively in the burgeoning sector, making it clear that crypto has the potential to contribute significantly to both the economy and infrastructure.
