Source: Vernacular Blockchain
From the end of last year to the beginning of this year, the newly elected President of the United States, Trump, made a lot of promises to the Bitcoin and crypto industry during the election and before taking office, which directly boosted the crypto market wave after wave of enthusiasm. Although Trump did not "cross the river and demolish the bridge" as some comments said after taking office, he constructively implemented the favorable crypto policies promised before. However, the subsequent roller coaster market of Memecoin such as TRUMP of his family, coupled with the superposition of complex macro-environment such as tariffs, the market sentiment turned from enthusiasm to panic, causing a lot of controversy.
The current crypto market performance is lower than expected, and it seems that there is no long-term impact on Trump's series of Bitcoin/crypto policies. Price in, are these really underestimated?
During the 2024 presidential campaign, Trump made ten major cryptocurrency policy commitments, clearly stating that he would promote the development of the US crypto industry and formulate a friendly regulatory framework for it.
But Trump did not mention encryption in his inaugural speech on January 20. However, Bitcoin Magazine CEO David Bailey later wrote that executive orders related to Bitcoin and cryptocurrency have been included in the first 200 executive orders after Trump took office, indicating that encryption policies will still be promoted.
As time goes by, Trump has been in office for almost a month. How are these ten policies being fulfilled?
1) Make the United States the global cryptocurrency capital
On January 23, 2025, Trump signed an executive order aimed at promoting the United States' leadership in the field of crypto assets and financial technology, emphasizing support for the development of blockchain and crypto assets. David Sacks, the AI and cryptocurrency commissioner appointed by Trump, made it clear: "We want to make the United States the world capital of AI and bring considerable economic benefits to the country."
2) Stop the crackdown on the crypto industry within an hour of taking office
On January 23, Trump signed an executive order to establish a cryptocurrency working group to propose a new regulatory framework for crypto assets and explore the creation of a national Bitcoin reserve.
3) Prevent the U.S. government from further developing central bank digital currencies (CBDCs)
The January 23 executive order explicitly prohibits the establishment, issuance, or promotion of CBDCs in the United States and requires the immediate termination of any related plans.
4) Establish a strategic Bitcoin reserve
Currently, the government is evaluating the possibility of establishing a crypto asset reserve, but no final decision has been made. However, on January 23, Senator Cynthia Lummis, who proposed the Bitcoin Act, was appointed chair of the Senate Banking Crypto Assets Subcommittee, which should promote the bill again.
5) Fire Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC)
Gary Gensler resigned on January 20, and on January 21, Trump announced that SEC Republican Commissioner Mark T. Uyeda would serve as acting chairman until Paul Atkins (Trump's official nominee to replace Gensler) completes the Senate confirmation process. On the same day, Mark announced the establishment of a cryptocurrency working group to develop a clear and clear regulatory framework for U.S. crypto assets.
In addition, according to news on February 4, the Trump administration is reducing the number of members of the SEC's cryptocurrency enforcement team, which was once responsible for crypto enforcement actions and consisted of more than 50 lawyers and staff, but there is no exact news on the number of layoffs.
6) Prevent the United States from selling its Bitcoin
There has been no official statement clarifying the situation of the U.S. government holding Bitcoin, so we have to wait and see if there is any new news in the future.
7) Propose to use cryptocurrencies to solve the US debt problem
There is currently no public information showing that the government has taken specific measures to use crypto assets to solve the national debt.
8) Propose a comprehensive crypto policy
There is currently no comprehensive crypto policy in place. The crypto panel established by the new executive order signed below instructs relevant agencies to submit regulatory and legislative recommendations on crypto assets within 180 days to develop a comprehensive cryptocurrency policy.
9) Establish a Cryptocurrency Advisory Committee
A working group composed of senior officials from multiple departments has been established to propose a regulatory framework for crypto assets.
10) Reduce the sentence of Ross Ulbricht, the founder of "Silk Road"
On January 23, Trump signed a pardon, releasing Ross Ulbricht, who had served 11 years in prison.
So far, most of the ten crypto-friendly policies promised by Trump have been implemented, especially in the formulation of regulatory frameworks and policy support, but some policies still need time to be verified for full implementation.
However, in addition to the crypto-related parts of the first 200 executive orders after taking office, and the crypto policies promised before, Trump has also conducted many other explorations on crypto before and after his term.
World Liberty Financial (WLFI) is a decentralized finance (DeFi) project supported by the Trump family. It was launched in September 2024 and provides blockchain financial services such as borrowing, trading and income.Despite the active promotion by Trump and his children, WLFI has no direct legal relationship with the Trump family and is only authorized to use its brand for publicity. This ambiguous relationship has aroused market doubts, and the Token WLFI only has governance functions, not economic rights, and the initial Token sales were mediocre. However, with the inauguration of Trump and the spread of the TRUMP Memecoin effect, the market heat of WLFI has increased. After January 20, its 20% (20 billion) Token sales were completed, raising a total of US$1 billion. Driven by market demand, WLFI sold another 5% (5 billion) Tokens, priced at US$0.05, an increase from the initial price. As of February 12, 81% had been sold. WLFI not only relies on the Trump brand, but its team also includes senior people in the encryption industry, and has established cooperation with institutions such as Aave and Ethena Labs. Its multi-signature address currently holds more than US$74.5 million in crypto assets, mainly investing in ETH, WBTC, AAVE, etc.
On January 17, three days before the president was sworn in, Trump launched "TRUMP Memecoin" on Solana. In just two days, the market value soared to $14.5 billion, and drove Bitcoin to break through $109,000. However, the craze quickly faded. By January 30, the market value had fallen by two-thirds, but transaction fees were as high as $86 million to $100 million. Trump's wife Melania subsequently launched "MELANIA Memecoin", which also suffered a sharp drop. TRUMP fell by 64.7% in a week, and MELANIA fell by more than 80%.
Price trend of TRUMP Memecoin since its issuance, source: CoinmarketCap
TRUMP is led by Trump's CIC Digital, which mainly makes profits through transaction fees, and the specific income and ownership are still opaque. On-chain data analysis shows that TRUMP was originally launched on DEX Meteora, and at least 50 large investors among the early holders of the Memecoin each made a profit of more than 10 million US dollars, while about 200,000 small investors suffered losses.
It is worth noting that the issuance of TRUMP caused a "blood-sucking effect" in the market in the short term, draining liquidity and causing a general decline in cryptocurrencies outside the Solana ecosystem. Subsequently, the WLFI project supported by Trump began to buy ETH assets in batches.
On January 23, 2025, Trump signed an executive order to establish a new special project - the Cryptocurrency Working Group, which aims to propose new crypto asset regulations and explore the possibility of establishing a national cryptocurrency reserve.The working group is led by David Sacks, the AI and Cryptocurrency Commissioner appointed by Trump, and its members include senior government officials such as the Treasury Secretary, Attorney General, Commerce Secretary, SEC Chairman and CFTC Chairman.
According to the executive order, the working group will submit a report within 180 days, proposing regulatory recommendations on stablecoin management, market structure, consumer protection, etc., and assess the feasibility of establishing a national cryptocurrency reserve. Sacks said: "We want to make the United States the world capital of artificial intelligence and bring considerable economic benefits to the country."
This move focuses on the integration of artificial intelligence and crypto assets, which is also something Trump did not mention in his election promises. At present, Trump has proposed that the United States should occupy a global leadership position in these key technology fields, trying to further promote the United States' dominant position in global technological competition through the coordinated development of artificial intelligence and crypto assets.
KOLs' views on Trump's crypto policies are diverse and complex. Based on some discussions and analysis on the Internet, the following is a summary of some of the main views:
Some KOLs believe that Trump's policies will have a positive impact on the cryptocurrency industry. They pointed out that Trump's executive order may mark a shift from regulatory suppression to supportive policies, such as stopping the SEC's crackdown on cryptocurrencies, making the government more accepting of crypto technology, and entrepreneurs participating in policy making, which are believed to be likely to bring more innovation opportunities and regulatory clarity to the industry.
For example, Marc Andreessen, co-founder of a16z, said that Trump's policies are good for the cryptocurrency industry. In various interviews and public discussions, he expressed his confidence in the regulatory relaxation and policy support that the Trump administration may bring.
Crypto analyst @skydegencall said that Trump not only did not stop supporting cryptocurrencies after the election, but also included Ethereum in his economic plan, thinking that this will change the rules of the game and that crypto assets will become part of Trump's legacy.
Solana community leader @sol_jingou believes that Trump's executive order will trigger a series of chain reactions, including stopping the SEC's crackdown on cryptocurrencies, allowing government agencies to accept crypto technology, allowing entrepreneurs to participate in policy making, and the government itself becoming a participant in the crypto market, thinking that the winner this time will not be short-term speculators.
Crypto technology expert @0xCheshire also mentioned that Trump's executive order will lead to the SEC's relaxation of its suppression of cryptocurrencies and the government's acceptance of crypto technology, while pointing out that this policy shift is very beneficial to the industry, and believes that it is a 180-degree turn from high-pressure supervision to full support.
There are also KOLs who are skeptical about these policies. They worry that Trump's policies may be more motivated by political or personal interests rather than a true understanding and support of crypto technology.Especially in discussions about Trump's own cryptocurrencies such as TRUMP, there are views questioning whether this will lead to market manipulation or conflicts of interest.
For example, Coinbase CEO Brian Armstrong said he welcomes the possible regulatory easing brought about by Trump's policies, but expressed concerns about whether the policies can truly serve the industry, avoid conflicts of interest, and provide long-term stability.He has repeatedly emphasized in public that any policy must truly understand and support the basic principles of cryptocurrency, such as decentralization and user privacy.
Associate Professor of Finance @LarisaYarovaya was critical of Trump's crypto policies in an article published in The Guardian,arguing that Trump's policies may leave investors unprotected and vulnerable to financial manipulation, misconduct, and bubble bursts.
Bloomberg investigative reporter @ZekeFaux expressed concerns about Trump and his family's entry into the crypto space in an interview with NPR, especially about the conflict of interest that may result from Trump launching his own cryptocurrency.
US Senator @ElizabethWarren expressed concerns about Trump's crypto policy, emphasizing that such a policy may be for personal gain rather than the public interest.
In general, the views of KOLs reflect the duality of expectations and concerns about Trump's crypto policy. Most of them admit that policy changes may bring opportunities, but at the same time, many voices remind us to carefully observe the actual implementation and impact of the policy.
04 Summary
On the one hand, many of Trump's ten crypto policy commitments have begun to be implemented, such as the establishment of a cryptocurrency working group, the cessation of suppression of the crypto industry, and the exploration of establishing a Bitcoin reserve. However, some of the promises have not yet been fully realized, such as solving the national debt problem through cryptocurrency and launching a comprehensive crypto policy.
On the other hand, Trump's active involvement in the crypto field is not limited to policy support, but also includes actual business operations. He established a cryptocurrency working group, released the TRUMP coin, and supported projects such as the decentralized finance (DeFi) platform World Liberty Financial. This shows that Trump's cryptocurrency involvement is not just rhetoric. He promotes market innovation through specific projects and policies and strives to establish his own influence in the cryptocurrency field.
In addition, these measures also reflect Trump's desire to enhance the United States' leadership in the global crypto market and financial technology field through the potential of cryptocurrencies and related technologies. Whether through his own cryptocurrency or supporting decentralized financial platforms, he is bringing more policy support and market opportunities to the cryptocurrency industry. However, these actions have also raised questions in the market about its potential conflicts of interest and transparency, especially the role of Trump and his family in crypto projects, which has attracted some criticism.
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