The Trump administration supports cryptocurrency, establishing new positions and creating reserves, but the market is volatile, with prices of Bitcoin and others declining, though the long-term outlook remains promising.
Author: Dominic Basulto
Translation: Baihua Blockchain
As we enter 2025, the value of many top cryptocurrencies is soaring—this is not without reason. The incoming Trump administration is positioned to be the most supportive of cryptocurrency in history. Many promises made by President Donald Trump during his campaign are expected to enhance the prospects of the cryptocurrency industry.
Unfortunately, the so-called "Trump Rally" did not last long. Bitcoin's current trading price is nearly flat compared to post-election levels. Some top cryptocurrencies have seen declines of up to 45% this year. Therefore, one cannot help but ask: Has our "Trump Rally" in the cryptocurrency market come to an end?
01 Measures Taken So Far in 2025
In terms of regulation, the Securities and Exchange Commission (SEC) has withdrawn high-profile lawsuits against several cryptocurrency companies and signaled a more friendly approach towards the cryptocurrency industry. Former SEC Chairman Gary Gensler has left, to be replaced by Paul Atkins, who is known for his support of cryptocurrency.
To make the U.S. the "world capital of cryptocurrency," the Trump administration has established a brand new position—White House AI and Cryptocurrency Czar—to ensure that innovation in the cryptocurrency space continues to thrive. Recently, the White House also hosted its first cryptocurrency summit. These are all indicators of the importance of the cryptocurrency industry in Trump's future economic plans.
Most importantly, the Trump White House has begun creating a U.S. strategic Bitcoin reserve and a digital asset reserve. Cryptocurrency has transitioned from a fringe asset to one of potential strategic significance for America's future.
02 Measures Still Needed
Of course, there is still much work to be done. The U.S. still lacks a comprehensive regulatory framework for cryptocurrency. Over the past two years, the SEC's aggressive pursuit of cryptocurrency has led many to believe that there must be some legislation clearly outlining what cryptocurrency companies can and cannot do. However, this is not the case.
Additionally, the Trump White House could do more to support Bitcoin. During the campaign, Trump promised to support Bitcoin miners and ensure that all future Bitcoin is mined in the U.S. The current idea is to combine pro-growth policies supporting Bitcoin mining with new approaches to U.S. energy policy.
When it comes to Bitcoin, the strategic Bitcoin reserve has even more potential. Currently, the U.S. federal government has not committed to purchasing Bitcoin. To do this, it needs to find a budget-neutral way to buy Bitcoin. Nothing is impossible—including using savings from the Department of Government Efficiency (DOGE) to fund new Bitcoin purchases or reassessing the gold certificates held by the Federal Reserve.
03 Which Cryptocurrencies Might Benefit?
If the "Trump Rally" has further developments, the biggest winner is likely to be Bitcoin. There is a growing recognition that Bitcoin is now a strategic asset for the U.S. and can play an important role in the global economy. Therefore, many of the Trump White House's future actions may aim to support Bitcoin.
The second category of winners is what I call "Wall Street Cryptocurrencies." These cryptocurrencies are helping to bridge the traditional financial world (i.e., Wall Street) with the blockchain financial world (i.e., cryptocurrency). If you look at the current portfolio of the cryptocurrency company World Liberty Financial, which is associated with Trump, you can see examples of these "Wall Street Cryptocurrencies": Chainlink, Ondo, Aave, and Ethena.
Finally, there are layer one blockchains such as Ethereum, Solana, and possibly Cardano. These are the foundations of the blockchain economy, and the Trump team may prioritize these cryptocurrencies to drive innovation and growth. In short, they hold strategic significance, which is why Trump mentioned these cryptocurrencies when first introducing the vision for a U.S. digital asset reserve.
04 Conclusion
It is very important to take a long-term view here. For most governments, the norm is to give them 100 days to get their bearings. So there is still time.
In the best-case scenario, campaign promises will translate into executive orders, which will eventually turn into legislation. If that is the case, we have not yet seen the end of the "Trump Rally."
Article link: https://www.hellobtc.com/kp/du/03/5721.html
Source: https://www.fool.com/investing/2025/03/20/has-the-cryptocurrency
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