Since former president Trump’s return to office in January 2025, the crypto market thing has been transformed from the Trump in crypto market. Regulatory changes and shortfalls of presidential initiatives helped cryptocurrency prices surge impressive margins.
At around $104,000, Bitcoin is hovering around $104,000, or 50 percent higher than before the election. “There is no question that senior policy decisions made under Trump’s administration finally sparked this growth,” say industry insiders.
Key-Takeaways:
- SEC Chair Paul Atkins was appointed along with other Trump policies that pushed crypto-friendly policies. Crypto custody has been taken away from the institutions by removing accounting rule SAB 121.
- The executive order from Trump was meant to place the stateside nation on the map as a blockchain nation. The cryptocurrency stockpile also created a national cryptocurrency and showed the regulator’s nod towards digital assets.
1. Regulatory Overhaul That are Sparking the Institutional Growth
As soon as key financial regulators were replaced, the Trump in the crypto market began changing on the spot. The split of former SEC Chair Gary Gensler came as Trump chose Paul Atkins as SEC Chair and David Sacks as White House AI and crypto czar.
The changes in personnel made one thing clear: the administration we’ve got aims to have the best cryptocurrency-friendly policies. However, the moves were clearly a display of Trump’s backing for the digital currency market.
Ruled by Trump, the most impactful early regulatory move in the market was for cryptocurrencies to no longer be treated as liabilities on the balance sheets of financial institutions with the withdrawal of accounting rule SAB 121. Excluding this would have been a big barrier for traditional banks when considering cryptocurrency custody services.
“In fact, repealing it just gives a lot more comfort to get financial institutions to feel comfortable considering custodying crypto, which really opens the door for a lot more regulated institutions to support crypto as an asset class that they would offer to the client,” said Kian Sarreshteh, co-founder and CEO of digital investing platform InvestiFi.
But the arrival of Trump in crypto market has allowed legacy financial institutions to take more of a dive into digital asset services while bolting faster towards crypto mainstream adoption. They believe the institutional entry of this kind could offer the cryptocurrency valuations with the much required stability beyond speculative investment cycles.
2. Presidential Executive Order on National Cryptocurrency Strategy
The signing of an executive order clearly pushing cryptocurrency progress in the United States was a cornerstone of the evolving market of crypto in Trump. The orders say, “The digital asset industry is vital to our Nation’s innovation and economic development, serves an integral role as a world leader in the U.S. financial services economy”
One of this executive order’s most notable innovations was the first step in this executive order to create a national cryptocurrency stockpile. It could also come from cryptocurrencies already seized by the government through the use of law enforcement.
It doesn’t meet the U.S. government’s campaign-trail promise of buying bitcoin for a sovereign reserve, but it’s still the first time the U.S. government has engaged in asset-backed cryptocurrency holdings.
This development was received positively by the Trump in crypto market. By positioning the U.S. as a global leader in blockchain technology, it was considered as confirmation that the administration intends to create this reality.
But 21Shares vice president Federico Brokate said such moves were a ‘vote of confidence’. They also reflect the administration’s continued favor of digital assets, he added.
It is therefore a clear flip the switch that indicates the approach will be to encourage and accept Cryptocurrencies. That’s part of a wider push within the U.S. financial system to put blockchain to work.
3. Presidential Family’s Direct Market Participation
The Trump in crypto market has also been directly affected by the Trump family’s entry into cryptocurrency investment products in some ways perhaps most surprisingly. Just before the inauguration, both President Trump and First Lady Melania Trump introduced their own memecoins, cryptocurrencies derived from the internet culture or a public figure.
The First Lady’s coin topped $13 making the president’s $6.50 look cheap while the president’s coin jumped to $73 and fell 50 percent. It is an unprecedented direct participation of a sitting president and first lady into cryptocurrency markets, which truly marks a step forward for Trump’s views regarding digital assets.
Trump Media & Technology Group, via its Truth.Fi ETFs, entered the cryptocurrency space. Crypto.com partnered with these investment vehicles in order to develop products that allow traditional investors to invest in digital assets.
The $TRUMP memecoin that recently debuted on the Solana blockchain is proving to be big in the Trump in crypto market, as it currently boasts big numbers and a $14 billion market cap. While some doubt whether it will hold in the long term, it does have an immediate impact on the market.
Conclusion
These policy moves drive the Trump in crypto market, and as the industry adjusts to the new regulatory landscape, so do embodiments of the crypto market. The executive order shows a more cautious approach when it comes to the rapid action the bitcoin maximalists hoped for on a national bitcoin reserve.