the staff of the Ridgewood blog
Washington DC, in just under 100 days, the Trump administration has drastically reshaped Washington’s stance on cryptocurrency, fulfilling many campaign promises through a flurry of executive orders, regulatory reforms, and symbolic gestures that crypto leaders say mark a major turning point for the industry.
From dropping Biden-era lawsuits against crypto firms to establishing a federal bitcoin reserve, the administration’s early moves have won widespread praise among digital asset investors and companies, even as broader policy shifts create new uncertainties.
New Era of Crypto-Friendly Policies
One of Trump’s first actions after returning to the White House was signing an executive order that established a White House working group on digital assets, led by David Sacks, the new czar of AI and cryptocurrency. The group is tasked with creating a comprehensive federal regulatory framework and managing the strategic bitcoin reserve initiated by Trump in March.
The administration also reversed President Biden’s 2022 crypto directive, signaling a clean break from previous policies seen as adversarial to the sector.
“It’s a total sea change in Washington, it couldn’t be more different from six months ago,” said Nic Carter, founding partner at Castle Island Ventures, who tracks Trump’s campaign promise progress on crypto.
Industry Confidence Surges
Crypto leaders and investors are optimistic about the shift, pointing to the reduction in SEC enforcement actions, increased dialogue with regulators, and the willingness of government agencies like the CFTC and Treasury Department to engage with the sector.
“Whether you support this administration or not, the fact is: regulators are starting to engage in a real dialogue. That matters,” said JP Richardson, CEO of Exodus.
“Having that freedom to build, that freedom to innovate, is the most important thing the industry is thinking about,” added Nathan McCauley, CEO of Anchorage Digital.
Scaling Back Enforcement Draws Mixed Reactions
The administration’s rapid rollback of past enforcement policies has sparked criticism from some watchdogs. The Department of Justice disbanded a key regulatory enforcement unit, prompting concerns from Democrats about under-policing of potential digital financial crimes.
“It’s signaling to the crypto world that they don’t have to be cautious about securities laws anymore,” said crypto critic Molly White, who warned that new high-risk products are being introduced without fear of regulation.
Meme Coins and Ethics Concerns
The launch of two Trump-themed meme coins ahead of the inauguration raised eyebrows, with critics arguing they could undermine the industry’s legitimacy. While meme coins are often speculative and volatile, Trump’s personal association with these tokens sparked ethics concerns from lawmakers.
A recent announcement of a private dinner for top 220 token holders reignited scrutiny. Two Democratic legislators have since called for a federal ethics investigation into the project.
Broader Trump Policies Create Market Turbulence
While Trump’s crypto agenda is welcomed, other policies — such as tariffs and trade war rhetoric — have stoked market volatility. Coinbase analysts recently warned of a potential “crypto winter” due to growing global economic uncertainty.
“Crypto isn’t as isolated as some think. Bitcoin is increasingly behaving like a macro hedge,” said Richardson. “The real risk isn’t trade policy itself but the uncertainty that comes with it.”
Bitcoin surged past $100,000 after Trump’s election and hit a record high of $109,000 on Inauguration Day. However, it dropped below $75,000 in April following aggressive tariff announcements.
Despite the dip, long-term players remain confident:
“Some folks are in a sour mood because markets are down… but those are short-term thinkers,” said Carter. “The bigger picture is extremely positive.”
Crypto Industry Adjusts to a New Washington
The industry is now adjusting to a drastically different federal posture. Executives believe Trump is honoring his crypto commitments, even as other aspects of his administration prove polarizing.
“At some level, he’s keeping his promises to us. It’s fair that he also keeps the promises he made to others,” said a senior crypto executive anonymously.
As federal agencies continue aligning with the new pro-crypto stance, the next phase will likely focus on formalizing regulatory frameworks and establishing clearer rules for innovation in the digital asset economy.
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