Donald Trump’s journey from crypto skeptic to loud-and-proud advocate wasn’t a change of heart.
It was a sharp political calculation, following the money from a powerful new lobby and eyeing a new base of voters, all while his own family waded into digital assets.
He once called Bitcoin [BTC] a “scam.” Now, his 2024 run and return to power are tied to a pro-crypto platform, a complete reversal designed to win over a rich and influential voting bloc.
Once a skeptic…
In his first presidency, Trump didn’t mince words. He took to Twitter in 2019 to blast Bitcoin and its peers as “not money,” their value “based on thin air.”
That disdain set the tone for regulators like the SEC, who ramped up their policing of the industry. Even out of office, he kept up the attack, calling Bitcoin a “scam” again in a 2021 interview.
The pivot: NFTs and a new audience
The first crack in his anti-crypto stance appeared in December 2022. He launched his own line of NFT trading cards, showing he was at least willing to do business with the technology.
But the real U-turn came with his 2024 campaign. The crypto world, feeling bruised by the previous administration, had morphed into a political heavyweight, ready to fund candidates who had their back.
Trump’s team saw an opening. They started taking crypto donations and holding meetings with industry executives. His speeches changed, now filled with promises to turn America into the “crypto capital of the planet.”
Making “Crypto President” a reality
Since taking office again, the administration is putting policies in place to back up the talk.
An executive order from March 2025 created a Strategic Bitcoin Reserve, filled with bitcoins seized in federal cases, with a clear instruction: the U.S. will not sell them.
Trump has also stood firmly against a central bank digital currency (CBDC), which he paints as a “dangerous threat to freedom,” and has forbidden any federal agency from working on a “digital dollar.”
The White House is signaling an end to the “regulation by enforcement” era, pushing laws like the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signed in July 2025, to create federal rules for stablecoins.
Why the change?
Three things drove this U-turn:
- Simple Politics: The crypto industry became a lobbying giant with a motivated base of voters, creating an opportunity too good to pass up.
- Family and Finances: The Trump family started its own crypto projects, including memecoins, which has led to questions about whether personal profit is shaping public policy.
- New Advisors: Trump surrounded himself with digital currency believers who urged him to create a friendlier government approach.
Donald Trump’s evolution from a crypto doubter to its biggest cheerleader shows just how much political and financial muscle the industry has gained. His presidency is now set to define the future of crypto in America.
The “Bitcoin Superpower” agenda
The Trump White House has a clear goal for digital assets: make the United States the world’s “bitcoin superpower.”
This plan involves installing crypto-friendly faces at regulatory bodies, boosting domestic crypto mining, and building up a national Bitcoin stockpile.
A top priority is shaking up the leadership at the Securities and Exchange Commission (SEC).
The administration is directly responding to the crypto industry’s complaints about a “crackdown” by promising a much friendlier regulatory style.
Legislation like the Financial Innovation and Technology for the 21st Century Act (FIT21) is another key piece.
The bill tries to end the turf war between the SEC and the Commodity Futures Trading Commission (CFTC) by defining their roles.
It would classify most cryptocurrencies as commodities, which would put them mainly under the CFTC’s watch.
The administration is also championing American cryptocurrency mining, with Trump declaring he wants crypto to be “mined, minted and made in the USA.”
This “America First” strategy includes promises to cut back on environmental rules that miners say are holding back their growth.
One of the most ambitious ideas is a “national Bitcoin stockpile,” a strategic reserve created by keeping all Bitcoin the government seizes from criminals.
The idea is to use this reserve to help stabilize the economy and keep the dollar strong.
This is a complete reversal from the previous administration’s exploration of a Central Bank Digital Currency (CBDC).
The Trump campaign has fought the idea, claiming to protect the right to,
“Mine, own, and transact digital assets without government surveillance.”
An executive order now forbids federal agencies from helping to create any kind of central bank digital currency.
Other plans include a Presidential Crypto Advisory Council and more support for stablecoins, with the GENIUS Act now providing a federal rulebook for them.
A new boss at the SEC and what it means for crypto
A new chair at the Securities and Exchange Commission (SEC) appointed by Trump will likely transform how the government polices the crypto industry.
The old “regulation by enforcement” days could be over, replaced by a more welcoming set of rules. This would have huge consequences for current legal fights, like the one involving Ripple [XRP].
The previous SEC leadership went after crypto companies aggressively, filing lawsuits and claiming they violated securities laws.
The agency’s wide-ranging use of the Howey Test, the legal benchmark for what counts as a security, has been a major source of friction.
A Trump-picked SEC chair will probably take a different path. The administration has already shown its hand by signing the GENIUS Act. The names being floated for the job are known to favor less aggressive regulation.
This change could completely alter the SEC’s lawsuit against Ripple Labs. A 2023 court ruling found that Ripple’s sales of XRP to big investors were securities, but its sales to the public on exchanges were not.
A more crypto-friendly SEC might drop its appeals or agree to a more lenient settlement. One former SEC official even speculates that new fraud cases might only be brought in the most extreme situations.
Will big money finally jump into Bitcoin?
A Trump presidency could be the green light big investors have been waiting for, potentially unleashing a flood of money from institutions into Bitcoin.
A combination of executive orders, friendly appointments, and new laws are signaling a fundamental change in U.S. policy that could attract huge amounts of capital.
The most important step is creating clear rules, something institutional investors have been demanding for years.
An executive order to support the “responsible growth and use of digital assets” is already in place, creating a group to design a single federal framework.
The White House’s appointments and policies all point to a more relaxed regulatory future.
A major change seems to be the preference for calling Bitcoin a commodity, putting it under the watch of the CFTC instead of the SEC.
This friendlier environment is expected to be a huge boost for spot Bitcoin ETFs, giving big investors a regulated way to buy in.
Approvals for similar products based on other assets like Ethereum [ETH] and Solana [SOL] could bring even more money into the market.
To give Bitcoin more legitimacy, the administration has created a U.S. Strategic Bitcoin Reserve, filled with seized assets that will be held, not sold.
This treats Bitcoin like a real store of value and a strategic national asset, which could build market confidence and steady its price.
The recently passed GENIUS Act also strengthens the crypto market by setting up clear rules for stablecoins, which are vital for connecting traditional finance with the crypto world.
Ethereum’s fate: Commodity or security?
What exactly is Ethereum? The world’s second-largest cryptocurrency has been stuck in regulatory limbo, and the new administration could finally provide a clear answer.
The turf war between the SEC and the CFTC over who controls it has left the market confused.
The SEC has long argued that many cryptocurrencies are securities under the Howey Test. At the same time, the CFTC has consistently called Ethereum a commodity.
This clash has created a messy and unpredictable situation for investors.
A new administration can tip the scales through its appointments to the SEC and CFTC, executive orders, or new laws.
A president who wants to encourage innovation could appoint leaders who see Ethereum as a commodity.
The current SEC Chair, Paul Atkins, has already said informally that he doesn’t think Ethereum is a security.
New laws like the proposed “Digital Asset Market Clarity Act” (CLARITY Act) are designed to put “mature” digital assets like Ethereum under the CFTC’s control.
The approval of Ethereum ETFs also signals that it is gaining acceptance in mainstream finance.
XRP’s American comeback?
New laws like the GENIUS Act and the CLARITY Act could give a major lift to payment-focused cryptocurrencies like XRP inside the United States.
For years, murky rules in the U.S. have held back new ideas. The legal fight between the SEC and Ripple over how to classify XRP has been a major roadblock.
The GENIUS Act, now law, creates federal rules for payment stablecoins, a big step toward making digital assets a legitimate part of the payment system.
The CLARITY Act, which has already passed the House, tries to draw a clear line between digital commodities and securities, giving the CFTC control over digital commodities.
Such rules could finally give a definitive label to assets like XRP that were built for payments.
With clear rules, U.S. banks and financial companies might be more willing to use XRP-based technology for sending money across borders.
It would also likely get XRP re-listed on major American crypto exchanges, making it available to more people.
Trump’s attack on a “Digital Dollar” helps Bitcoin
Donald Trump’s fierce opposition to a U.S. Central Bank Digital Currency (CBDC) has an interesting side effect: it makes decentralized alternatives like Bitcoin look more appealing.
By casting a “digital dollar” as a government spying tool and a danger to personal freedom, Trump is echoing the core beliefs of the crypto community.
He has repeatedly warned that a CBDC would let the government track every purchase and even freeze people’s money.
Citing these privacy and financial risks, he signed an executive order to outlaw the creation of a CBDC in the U.S.
This anti-CBDC stance is a powerful, if indirect, endorsement of decentralized cryptocurrencies.
Bitcoin’s core features—no central control, resistance to censorship, and unchangeable records—are the exact opposite of a government-run digital currency.
By slamming the door on a public digital dollar, the Trump administration has opened it wide for private options.
The same executive order that banned a CBDC also included measures to help a private-sector digital asset market grow, with a special focus on stablecoins backed by the U.S. dollar.
Crypto wakes up: A new force in politics
What was once a fringe interest has exploded into a major political issue in the United States.
A growing and energized base of voters, a tidal wave of industry cash, and a changing political map have put cryptocurrency in the spotlight.
A new “crypto voter” has appeared. They tend to be younger, more diverse, and more likely to be male and live in cities.
Polls show that a large number of voters have either invested in or used crypto, and they are very active in politics.
The crypto industry is now a political fundraising powerhouse, spending tens of millions to elect friendly candidates.
Pro-crypto super PACs like Fairshake have led the charge, pouring money into key congressional races to support candidates from both parties who seem open to the industry.
This has pushed the topic onto the national debate stage, forcing both major presidential candidates to appeal to the crypto community.
The industry’s lobbyists are also working hard to influence future regulations, pushing for clear rules that protect people without killing innovation.
Two Presidents, two crypto visions
The 2024 election showed a deep divide in how the two campaigns viewed cryptocurrency.
The Biden administration took a careful, by-the-book approach, focusing on government-wide rules for consumer protection and financial safety.
This was laid out in a March 2022 Executive Order on the Responsible Development of Digital Assets.
That cautiousness led to more aggressive enforcement from the SEC. A major point of conflict was the SEC’s Staff Accounting Bulletin 121 (SAB 121), a rule that made it hard for big banks to hold crypto for their clients.
Donald Trump, on the other hand, has cast himself as the crypto industry’s hero.
A second Trump term is expected to take a more hands-off, pro-business line on crypto rules, focused on cutting red tape and encouraging new ideas.
This likely means fewer SEC enforcement actions and a hard line against a CBDC.
The difference in their approaches is also a political one, with the Trump campaign actively trying to win over the expanding group of crypto-owning voters.
What a Trump Presidency means for the crypto market
A win for Donald Trump could mean a bumpy ride for major cryptocurrencies in the short term but a potentially bullish path in the long run.
The market has already shown signs of excitement at the thought of a pro-crypto White House.
A key part of Trump’s long-term plan is creating a Strategic Bitcoin Reserve, which would officially treat Bitcoin as a reserve asset.
The administration is also expected to form a U.S. Digital Asset Stockpile that would hold other cryptocurrencies like Ethereum and XRP.
A major regulatory shakeup is also expected. A new, more crypto-friendly SEC leadership could approve more investment products, like ETFs for assets such as Solana and XRP.
Laws like FIT21 would provide much-needed regulatory clarity.
For Ethereum and XRP, their potential inclusion in a U.S. Digital Asset Stockpile is a huge vote of confidence. A new SEC chair could also bring the long-running Ripple lawsuit to a favorable end.
But it’s not all clear skies. Trump’s unpredictable policymaking could create market jitters. Wider economic issues, like potential trade tariffs, could also make for a volatile market.
A new crypto era: How U.S. policy is changing the global game
A major shift in American cryptocurrency policy under the Trump administration is changing the competitive landscape for global financial centers.
The recent passage of the GENIUS Act is a sharp break from the more careful approach of the previous administration.
This pro-growth attitude stands in contrast to the European Union’s detailed Markets in Crypto-Assets Regulation (MiCA), which creates a clear system for licensing crypto businesses.
The EU is also moving ahead with a digital euro, which puts it at odds with the current U.S. opposition to CBDCs.
Financial hubs in Asia are also stepping up their crypto game. Hong Kong has rolled out its own rules for stablecoins, positioning itself to compete directly with the U.S. for control of the global stablecoin market.
The U.S. policy change is a big bet on its ability to stay at the forefront of financial innovation. By creating clear rules, the U.S. hopes to be the top destination for talent and investment.
The political divide: A risk for crypto’s future
The widening gap between political parties in America on cryptocurrency could create a chaotic cycle where rules change every few years, leaving businesses scrambling.
The lack of a stable, long-term regulatory plan is a major worry for the industry.
The Republican party has increasingly become the party of crypto, while many Democrats have taken a more skeptical stance, putting consumer protection first.
This has led to heated fights over legislation, with bills like the GENIUS Act and the CLARITY Act passing with very little support from Democrats.
This uncertainty makes it hard for developers to innovate and creates huge risks for investors.
The constant threat of “regulation by enforcement” has already pushed some crypto companies to move to countries with friendlier rules.
Trump’s energy plans and Bitcoin mining
A second Trump term could completely change America’s energy policy, which would have a huge impact on Bitcoin mining.
An “America First” energy plan that focuses on deregulation and maximizing oil, gas, and coal production would likely make things easier for the energy-hungry crypto mining industry.
This “energy dominance” strategy could bring down electricity prices for miners by boosting the production of natural gas and coal.
However, getting rid of green energy subsidies from the Inflation Reduction Act could make renewable power more expensive for them.
Overall, the policy direction would likely be a green light for the expansion of Bitcoin mining in the U.S., with Trump’s public support creating a friendly political atmosphere.
This could cause mining operations to cluster in states with abundant fossil fuels.
Crypto as a weapon for U.S. economic power
The Trump administration seems ready to use cryptocurrency policy as a tool to prop up the U.S. dollar’s power and make America the leader in financial technology.
The stated goal is to make the U.S. the “crypto capital of the world.”
The GENIUS Act is a central piece of this plan. It creates rules for stablecoins that the administration thinks will make the dollar stronger.
A key part of the law forces stablecoin companies to back their tokens with U.S. dollars or government bonds.
The administration has also embraced Bitcoin as a strategic national asset by creating a Strategic Bitcoin Reserve.
The thinking is that a strong, U.S.-led crypto market can absorb global demand for cash without weakening the dollar.
While encouraging private-sector ideas, the administration has drawn a hard line against a U.S. CBDC, arguing it threatens financial privacy and gives the government too much control.
From campaign trail to law: A reality check
While Donald Trump has made a lot of pro-crypto promises, turning those words into actual policy will depend on a messy mix of political power and legislative math.
Studies show that politicians generally do try to follow through on their pledges. However, a divided government and the need to make deals can get in the way.
A look at Trump’s first term reveals a track record of both kept and broken promises.
He delivered on major tax cuts and appointed a long list of conservative judges, but he couldn’t repeal and replace the Affordable Care Act or get Mexico to pay for a border wall.
Turning pro-crypto talk into real laws will be tough. Writing comprehensive legislation means dealing with the competing interests of agencies like the SEC and CFTC.
Any major bill will also need to get enough votes in what could be a divided Congress.
The administration’s “AI Action Plan,” which used executive orders to get things done, might be a preview of how it will handle crypto policy, possibly by using its own power to cut through red tape.