"We're not going to have a separate banking industry and crypto industry. It's going to be one digital assets industry," declared White House advisor David Sacks, encapsulating the administration's vision for a fundamental financial system merger.
President Donald Trump returned to office in 2025 promising to make the United States the "crypto capital of the world." He delivered an unprecedented wave of deregulation, bipartisan legislation, and pro-industry appointments. Yet, a year into his term, the cryptocurrency market presented a paradox: while regulatory barriers fell and government embraced digital assets, major cryptocurrencies saw significant value declines, and the administration became embroiled in persistent conflict-of-interest controversies. This article examines the complex effects of Trump's decisions on the crypto market—a story of regulatory triumph, market volatility, and personal profit.
1 The New Regulatory Framework: A Pro-Crypto Overhaul
Upon taking office, the Trump administration moved swiftly to rewrite the rulebook for digital assets, shifting from what the industry criticized as a "regulation-by-enforcement" approach to one prioritizing growth and innovation.
· Executive Actions and Key Appointments: On January 23, 2025, President Trump signed an executive order aimed at "supporting the responsible growth and use of digital assets". This order revoked the Biden administration's digital asset framework and established a high-level Working Group on Digital Asset Markets, chaired by "Crypto Czar" David Sacks. Trump appointed pro-crypto figures to key roles: Paul Atkins as SEC Chair, Scott Bessent as Treasury Secretary, and Travis Hill as acting FDIC Chairman, all expected to foster a more permissive environment.
· Landmark Legislation: The GENIUS Act: In July 2025, Trump signed the first major federal crypto law, the GENIUS Act. It created a federal regulatory system for stablecoins, requiring 100% reserve backing with liquid assets like U.S. Treasuries and mandating strict consumer disclosures. The law aimed to protect consumers, strengthen the dollar's reserve status, and combat illicit activity by subjecting issuers to the Bank Secrecy Act.
· Regulatory Rollbacks and New Freedoms: The administration systematically dismantled previous constraints. The SEC rescinded a controversial accounting rule (SAB 121) that had discouraged banks from holding crypto, freeing major institutions to participate. The SEC also announced it would not pursue "pure" memecoins that weren't investment contracts, and the OCC gave banks explicit permission to use public blockchains. Notably, the Justice Department disbanded its national cryptocurrency enforcement team.
· Strategic Bitcoin Reserve: In a symbolic and strategic move, Trump issued an executive order establishing a national Bitcoin reserve, transforming roughly 207,000 Bitcoins seized from criminals into a "digital gold" asset held by the government with a "never sell" policy.
2 Market Performance: The Volatility Paradox
Despite this regulatory embrace, the cryptocurrency market did not respond with sustained bullish growth. Instead, it experienced notable declines and heightened volatility, influenced by broader administration policies.
Key Market Declines (Over Trump's First Year):
· Bitcoin (BTC): Down 13.4%
· Ethereum (ETH): Down ~9%
· Ripple (XRP): Down 39%
· Solana (SOL): Down ~50%
· Cardano (ADA): Down 63%
Analysts pointed to broader macroeconomic forces as primary drivers. Trump's aggressive tariff policies—particularly the announcement of 100% reciprocal tariffs on China—triggered severe market reactions. Following that October 2025 announcement, Bitcoin fell 8-10% in a single session, with billions liquidated across the crypto market. These "tariff tantrums" demonstrated that even in a friendly regulatory climate, crypto remained a highly speculative asset class vulnerable to global risk-off sentiment.
Additional pressure came from challenges to Federal Reserve independence and rising geopolitical tensions, which intensified market swings. This created a paradox where structural, long-term regulatory progress was overshadowed by short-term macroeconomic uncertainty.
3 Personal Profits and Ethical Firestorms
Perhaps the most controversial aspect of Trump's crypto presidency has been the blurring of lines between policy and personal gain. The Trump family has emerged as one of the most conspicuous winners in the crypto space, raising persistent conflict-of-interest concerns.
· The $TRUMP Memecoin and "Access for Sale"**: Just before inauguration, Trump launched the **$TRUMP memecoin. While marketed as fun for supporters, it had a clear utility: access. The top investors were invited to private dinners with the president. Entities affiliated with the Trump Organization collected hundreds of millions in trading fees. Critics, including Senator Richard Blumenthal, likened it to "auctioning off access" to the White House.
· World Liberty Financial and Foreign Entanglements: The Trump family holds a 60% stake in World Liberty Financial (WLF), a decentralized finance platform. WLF launched its own stablecoin, USD1, which gained sudden prominence when a firm in Abu Dhabi announced it would use $2 billion worth of USD1 to purchase a stake in Binance. This deal, which reportedly earns the Trump family tens of millions annually, coincided with a White House-brokered agreement granting the UAE access to advanced AI chips.
· Regulatory Actions and Personal Benefit: The administration's regulatory retreats often benefited individuals and companies linked to Trump's ventures. The SEC dropped or paused cases against crypto figures like Justin Sun, a major investor in WLF and the largest holder of $TRUMP coins. A House Judiciary Committee report in November 2025 concluded that Trump's crypto policies were used to benefit his family, adding billions to their net worth through schemes "entangled with foreign governments, corporate allies, and criminal actors".
4 Future Outlook and Unresolved Tensions
Looking ahead, the administration continues to push for further integration of crypto into the traditional financial system.
· The Push for a Market Structure Bill: Administration officials, including Trump and David Sacks, have expressed hope for soon passing a comprehensive crypto market structure bill, often called the Clarity Act. This legislation aims to clarify whether digital assets are securities or commodities and establish clearer oversight rules.
· Banking Industry Convergence: Sacks predicts that traditional banking and crypto will become "one industry," with banks potentially issuing yield-bearing stablecoins to compete. This vision depends on future legislation creating a level regulatory playing field.
· Persistent Criticisms and Risks: Consumer advocates warn that existing and proposed laws contain dangerous loopholes. The GENIUS Act does not adequately regulate the secondary market or foreign-issued stablecoins, potentially leaving openings for money laundering. Critics also argue proposed market structure rules are weaker than traditional securities laws, offering insufficient protection against manipulation and conflicts of interest.
President Trump's decisions have indelibly changed the cryptocurrency landscape in America. The administration has delivered unprecedented regulatory clarity and legitimized digital assets at the highest levels of government. Yet, the market's volatility persists, influenced more by macroeconomic policies than crypto-specific rules. Furthermore, the profound ethical questions surrounding the president's personal crypto ventures continue to cast a shadow, suggesting that the long-term effects of this presidency on the crypto market will be judged not only by the rules written but also by the integrity of the system they govern.
The ultimate effect may be a fundamental transformation: the movement of cryptocurrency from the financial fringe to the center of American political and economic power, complete with all the opportunities and compromises that position entails.