The cryptocurrency industry has witnessed a remarkable turnaround in its fortunes following its massive financial support for Donald Trump’s successful 2024 presidential campaign. In just one week under the Trump administration, the crypto industry has begun reaping significant rewards, signaling a new era of pro-crypto policies in Washington, D.C.
Crypto Advocates Celebrate a Favorable Start
During his first week in office, President Trump has already made moves that delighted crypto executives and investors. His administration issued executive orders, pardons, and rule changes that protect and promote the cryptocurrency space. Bill Gurley, a renowned venture capitalist, summarized the sentiment best: “I don’t think they could have imagined a better outcome than they just got in the past 48 hours.”
One of the most notable developments was an executive order aimed at advancing digital asset adoption in the U.S. The order called for collaboration between the Treasury, SEC, and Commodity Futures Trading Commission (CFTC) to explore ways to stockpile cryptocurrencies seized by the government. It also outlined measures to shield bitcoin miners and software developers from legal threats and endorsed the promotion of U.S. dollar-pegged stablecoins while rejecting the idea of a Federal Reserve-backed digital dollar.
SEC Commissioner Hester Peirce celebrated the rollback of SAB 121, an accounting rule that had made institutional crypto adoption difficult. “Bye, bye SAB 121! It’s not been fun,” Peirce wrote in a post on X (formerly Twitter). The withdrawal of the rule now paves the way for banks and financial institutions to embrace cryptocurrencies without the heavy regulatory burdens that previously discouraged adoption.
Bitcoin Hits Record Highs
The crypto market responded enthusiastically to the news of Trump’s pro-crypto stance. Bitcoin hit an all-time high of $109,000 earlier this week and remained near $105,000 by Friday, marking a 50% surge since Trump’s election victory in November 2024. Industry leaders such as Brian Armstrong, CEO of Coinbase, and Richard Teng, CEO of Binance, have voiced optimism about the future of digital assets under the new administration.
Armstrong, speaking at the World Economic Forum in Davos, criticized the regulatory hurdles imposed by the Biden administration, stating, “The last four years, we really felt like we were being attacked by this administration.” He expressed confidence that the Trump administration’s regulatory clarity would encourage innovation and investment in crypto.
Ross Ulbricht Pardon Sparks Debate
Another major move by President Trump was his full pardon of Ross Ulbricht, the founder of the dark web marketplace Silk Road. Ulbricht had been serving a life sentence without parole since 2015 on charges related to distributing narcotics and computer hacking. The pardon was a nod to the crypto community, where Ulbricht has become a polarizing figure and the subject of the “Free Ross” movement.
Trump announced the pardon on Truth Social, saying it was done in honor of Ulbricht’s family and the Libertarian movement, which had supported his campaign. The decision drew praise from Binance co-founder Changpeng Zhao, who responded with a clapping emoji on social media. However, critics pointed out the controversial nature of Ulbricht’s actions and their impact on the reputation of cryptocurrencies.
The Trump Meme Coins: A Mixed Bag
Despite the positive developments in policy, some of Trump’s personal ventures in crypto have sparked criticism. The launch of the $TRUMP and $MELANIA meme coins has raised eyebrows across the industry. These tokens, heavily promoted during the Crypto Ball in Washington, brought billions of dollars in paper profits to the Trump family. However, their release has led to skepticism, with many questioning the ethical implications of sitting U.S. leaders profiting from meme coins.
Nic Carter of Castle Island Ventures wrote, “Call me old-fashioned, but I think presidents should focus on running the country and not launching scam tokens.”
The $TRUMP coin, which saw an initial surge, has since dropped by more than 50% and is now trading under $30. Similarly, the $MELANIA token has plunged by over 80%, now valued at less than $2.50. Critics, including Sen. Elizabeth Warren and Rep. Jake Auchincloss, have raised concerns about potential “rug-pull” scams and the ethical implications of profiting from meme coins while in office.
The Road Ahead
While the Trump administration’s pro-crypto policies have sparked hope across the industry, skeptics caution that the actions of the president and his family could undermine the credibility and legitimacy of cryptocurrencies. The absence of a clear directive in Trump’s executive order to establish a U.S. bitcoin reserve also left some investors disappointed, despite earlier campaign promises to consider the idea.
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