Donald Trump's Pro-Crypto Agenda and Market Impact During Return to White House
Donald Trump reversed his early skepticism about cryptocurrency and leveraged pressure from the White House to advance a pro-crypto agenda during his return to the presidency. His administration enacted the GENIUS Act into law and supported a broader market-structure bill that passed the House but stalled in the Senate, delaying the establishment of a comprehensive federal framework for digital assets.
Trump aimed to position the United States as a global leader in cryptocurrency by appointing pro-crypto regulators and launching 'Project Crypto,' led by Paul Atkins, to promote tokenization and related regulatory rules. Among proposed initiatives were two long-term crypto stockpiles: a Bitcoin strategic reserve and a reserve encompassing all other tokens.
The Trump family's crypto involvement included controlling about 22.5 billion WLFI tokens, linked to World Liberty Financial, which raised over $550 million in a WLFI token sale before Trump's return. At one point, WLFI traded near $0.23, valuing the family's holdings at roughly $5 billion. Additionally, the family extended involvement to memecoins such as TRUMP and MELANIA, with Eric Trump noting WLFI would take a stake in the TRUMP token.
These arrangements drew criticism from Democrats, who labeled them a 'new age of corruption' due to potential conflicts of interest. The White House denied any conflicts, citing support for the GENIUS Act and other policies as evidence of integrity.
On the regulatory front, shifts included the Commodity Futures Trading Commission (CFTC) moving toward requiring regulated platforms to offer leveraged spot crypto products, while the Securities and Exchange Commission (SEC) under Atkins emphasized on-chain considerations in its leadership approach.
