As final Inauguration Day preparations get underway in the United States, the start of Donald Trump’s second term as President marks the dawn of a new era in Washington's approach to the crypto industry.
Trump’s first day in office is expected to include signing several crypto-related executive orders, including the potential establishment of a bitcoin strategic reserve and officially commuting the sentence of Silk Road creator Ross Ulbricht. Among other key crypto-related election pledges, Trump promised to appoint a more crypto-friendly Securities and Exchange Commission Chair, establish a Crypto Presidential Advisory Council, repeal SAB 121, end “Operation Choke Point 2.0” and turn the U.S. into a bitcoin mining “powerhouse.”
“Trump’s inauguration is shaping up to be a pivotal moment for crypto,” Joe McCann, CEO and CIO of crypto fund Asymmetric, told The Block. “There’s a lot of anticipation around possible policy moves, like rolling back restrictive measures such as SAB 121, creating a bitcoin reserve at the state or federal level, or even positioning the U.S. as a global hub for token issuance. If Trump pushes the country in that direction, it could transform the U.S. into a much more favorable environment for crypto entrepreneurs, attracting new projects, investment and innovation.”
States like Texas, Pennsylvania, Ohio, and Oklahoma are already advancing bills to establish strategic bitcoin reserves. Senator Cynthia Lummis (R-WY) has also previously introduced draft legislation for a U.S. national bitcoin reserve to acquire 1 million BTC ($108 billion) using government funds over the next five years.
“Senator Cynthia Lummis has been at the forefront of the conversation,” said McCann. “She’s hinted that momentum is building, describing the situation as one where things are gonna ‘get crazy.’”
2025 is shaping up to be an exciting year for the crypto industry amid the potential for a bitcoin strategic reserve and greater regulatory clarity, Xapo Bank CEO Seamus Rocca told The Block, also describing it as a “pivotal moment.”
“As we approach President-elect Donald Trump’s inauguration, the Bitcoin community is eager to see how he delivers on his bold message from Bitcoin Nashville — that the United States should be embracing this transformative industry,” Rocca said. “Trump’s acknowledgement of Bitcoin’s potential and his calls for American leadership in the space have sparked renewed optimism across the market.”
Rocca argued that Europe has been leading the way on the regulatory front through legislative frameworks like MiCA, and the U.S. has some catching up.
“The first 100 days of this administration will be critical in laying the groundwork for common-sense regulation that supports innovation and strengthens Bitcoin’s role in the financial ecosystem,” Rocca said. “We’re looking forward to seeing how the U.S. can capitalize on this moment and lead the charge toward a Bitcoin-powered future.”
According to Radix founder and CTO Dan Hughes, implementing clearer regulations in the U.S. could also be the catalyst for another DeFi summer.
“Trump will obviously be good for crypto if he implements even a few of the proposals, at least over the short term," he said. "At a minimum, some clear direction on regulation from the U.S. would finally make the lives of founders and developers much easier. Many other nations would likely adopt a similar framework or align with it, so I'd expect to see a surge of innovation for a period after.”
However, Hughes has longer-term concerns regarding the establishment of a bitcoin strategic reserve, arguing that nation-states holding large amounts of bitcoin in their treasury have the effect of “economic centralization,” in stark contrast with bitcoin’s ethos as a means to separate money and state.
Trump’s inauguration follows the high-profile and controversial launch of his official memecoin during the premiere Crypto Ball in Washington on Friday night. The TRUMP token subsequently surged to a market cap of around $15 billion, per The Block's Official Trump Price Page, becoming the fastest-growing memecoin in history — reaching a fully diluted value of more than $75 billion and entering the cryptocurrency top 20 by market cap. That was until the launch of returning First Lady Melania Trump’s own memecoin saw a 50% correction for TRUMP, though it later rebounded again.
While some may cringe at the launch, analysts at research and brokerage firm Bernstein told clients on Monday that it represented a “paradigm shift” in how the U.S. and the world will approach crypto. They argue that it signifies a new regulatory era in which governments see crypto as a technology to reach out to the masses directly.
Meanwhile, unsubstantiated rumors circulated on social media ahead of the inauguration, claiming that a draft of Trump's inauguration speech featuring a bitcoin strategic reserve announcement had been leaked. The foremost cryptocurrency subsequently surged to a new all-time high of more than $109,000 earlier on Monday, according to The Block's Bitcoin Price Page.
“Bitcoin recently surpassed $100,000, a key psychological milestone that reflects growing market confidence,” McCann said, adding that Wednesday’s cooler-than-expected CPI readings had sparked significant buyer-based inflow into crypto. “It’s now trading above that mark, with targets ranging from $125,000 to $150,000 and showing a bullish outlook for its price trajectory as Trump’s policies are revealed.”
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