From Skeptic to Champion
When Donald Trump returned to the White House for his second term, he brought with him a completely different attitude toward digital assets. This was a stark reversal from his first administration, where the SEC under his appointee Jay Clayton sued Ripple and set a tone of regulation through enforcement. Now, Trump positioned himself as crypto’s biggest political ally, promising to make the U.S. the global leader in the space.
He signed executive orders setting a pro-crypto agenda and appointed regulators who shared his vision. The most notable change came at the SEC, where Gary Gensler—widely viewed by the industry as an adversary—was replaced by Paul Atkins. Atkins quickly launched “Project Crypto” and made it his top priority, a clear departure from the previous enforcement-heavy approach.
Legislative Wins and Stalled Progress
The administration did score one significant legislative victory. The GENIUS Act, which established a regulatory framework for stablecoins, managed to navigate through Congress and became law. Trump hosted a White House celebration with crypto CEOs and cabinet members to mark the occasion. This was supposed to be just the beginning, with a more comprehensive market structure bill expected to follow.
But that’s where things have gotten complicated. While the House passed a market structure bill with unusual bipartisan support, it stalled in the Senate. The reasons are numerous—tight floor time, the need for 60 votes, and individual senators’ ability to obstruct. A government shutdown in the middle of negotiations didn’t help either. So despite Trump’s ambitious summer deadline, the broader regulatory framework remains incomplete.
The Conflict of Interest Question
Perhaps the most controversial aspect of Trump’s crypto involvement is how it intersects with his personal financial interests. After changing his stance on digital assets, he and his family dove into the space with remarkable enthusiasm. Trump cashed in on NFTs featuring himself, his family got involved in crypto mining, and most notably, the Trump-branded World Liberty Financial venture raised over $550 million before he even returned to office.
Public disclosures later revealed Trump family members controlled about 22.5 billion WLFI tokens, valued at roughly $5 billion when trading began. Around this, a whole “Trump-coin complex” emerged, with memecoins like $TRUMP and $MELANIA whipsawing on campaign news and policy announcements.
Democrats have raised serious concerns about this apparent conflict of interest. During a December House hearing, Trump-appointed officials agreed that regulators should avoid conflicts involving bank ownership but declined to comment on whether the same standard should apply to a president with crypto holdings. The House Judiciary Committee went further, calling the situation a “new age of corruption.”
The White House denies any conflict, stating that the administration is simply fulfilling Trump’s promise to make America the crypto capital of the world. But the question lingers: can someone simultaneously shape crypto policy and profit from it?
Regulatory Shifts Continue
Despite the legislative delays, regulatory changes are already happening. Across financial agencies, Trump’s appointees are implementing his crypto orders. The CFTC, for instance, is pushing for regulated platforms to offer leveraged spot crypto products. These administrative actions are moving forward even without congressional approval of broader legislation.
Atkins’ Project Crypto represents this new approach—focusing on how to move markets from off-chain to on-chain environments rather than just enforcing existing rules. It’s a fundamental shift in philosophy that’s already affecting how crypto businesses operate in the U.S.
I think what we’re seeing is a complicated picture. On one hand, there’s genuine progress in creating a more favorable regulatory environment. On the other, there are legitimate questions about whether personal financial interests are influencing policy decisions. And somewhere in between, there’s the practical reality that even with presidential support, getting comprehensive crypto legislation through Congress remains incredibly difficult.
