Trump’s Crypto Revolution: Key Moves in His First Week Back
In his first week as the 47th President of the United States, Donald Trump and the Republican Party initiated significant shifts, particularly in the crypto landscape.
Executive Orders and Regulatory Changes
The Narrative
Donald Trump was sworn into office on Monday and quickly signed a flurry of executive orders. While it took him a few days to address crypto-specific matters, his administration and the broader Republican Party have already taken key actions.
Why It Matters
The initial actions by government agencies and Congress set the tone for what we can expect in the evolving crypto regulatory environment.
Breaking It Down
Let’s take a closer look at the major developments so far.
White House and Administration
Crypto Executive Order
Trump signed a major executive order on crypto, which includes:
- Formation of a working group comprising Cabinet officials, White House advisers, and others to assess crypto regulations. AI and crypto czar David Sacks will chair this group.
- Evaluation of a digital asset inventory.
- Banning of any central bank digital currency (CBDC) under a broad definition.
- Revocation of former President Joe Biden’s crypto executive order, which mainly directed departments to research crypto regulations and consumer protections.
Trump also announced that David Sacks will co-chair his President’s Council of Advisors on Science and Technology.
Securities and Exchange Commission (SEC) Moves
- The SEC, under Acting Chair Mark Uyeda, formed a crypto-focused task force led by Commissioner Hester Peirce.
- Trump has nominated Paul Atkins as the SEC’s next Chair, pending Senate confirmation.
- The SEC rescinded Staff Accounting Bulletin 121 (SAB 121), which previously made it difficult for banks to hold crypto assets for clients.
Commodity Futures Trading Commission (CFTC) Actions
- Now operating under Acting Chair Caroline Pham.
- Harry Jung, a Senior Policy Advisor, was appointed as the lead for crypto industry engagement.
- Trump has yet to nominate a permanent Chair for the CFTC.
High-Profile Pardon: Ross Ulbricht
Trump pardoned Ross Ulbricht, the founder of Silk Road, stating on Truth Social that he did so in honor of Ulbricht’s mother and the Libertarian Movement that supported him.
Department of Government Efficiency
- Trump rebranded the U.S. Digital Service as the Department of Government Efficiency.
- Elon Musk was named its head, replacing Vivek Ramaswamy, who left to run for Ohio governor.
- The new department’s website initially displayed the Dogecoin logo, sparking speculation.
International Crypto Discussions
Trump spoke with El Salvador President Nayib Bukele, though an official readout of the call did not mention crypto.
Senate Actions
New Crypto Subcommittee
The Senate Banking Committee confirmed the creation of a subcommittee on digital assets, led by:
- Sen. Cynthia Lummis (R-Wyo.)
- Bernie Moreno (R-Ohio) – Received $40M in crypto PAC support.
- Ruben Gallego (D-Ariz.) – Backed by $10M in crypto donations.
- Dave McCormick (R-Pa.) and other members.
Upcoming Crypto Hearings
- February 5: Senate Banking Committee hearing (details yet to be disclosed).
- Sen. Ted Cruz (R-Texas) and Rep. Mike Carey (R-Ohio) sponsored a resolution to reverse the IRS’s latest crypto broker regulation.
- Sen. Elizabeth Warren (D-Mass.) requested the U.S. Office of Government Ethics investigate the TRUMP token, alleging ethical concerns.
House of Representatives Actions
Oversight Investigations
The House Oversight Committee will investigate whether banks de-banked cryptocurrency firms at the government’s request.
Upcoming Crypto Hearings in the House
- February 6: Focused on crypto firms being de-banked.
- February 11: Titled “A Golden Age of Digital Assets: Charting a Path Forward“.
Trump’s Business Interests in Crypto
- Rep. James Comer (R-Ky.) urged an investigation into Trump’s involvement with World Liberty Financial and the issuance of the TRUMP coin.
Other Notable Crypto Stories
Coinbase Legal Battle
Coinbase has asked a U.S. Appeals Court to rule that crypto transactions on its platform are not securities, challenging the SEC’s authority.
Ethereum Leadership Disputes
- Vitalik Buterin rejected demands for a leadership change.
- Ethereum Core Developer Eric Conner resigned due to internal conflicts.
- Vitalik emphasized Ethereum’s scaling roadmap to enhance Ether’s role in the ecosystem.
Crypto Security Risks
- Ledger Co-Founder Kidnapping Case: Reports suggest kidnappers severed Davad Balland’s finger during a ransom attempt.
Real Estate and Crypto
- Propy, a real estate company, is now offering crypto-backed loans, allowing users to secure loans with Bitcoin or Ether for purchasing properties.
Trump’s crypto revolution has begun with a flurry of executive orders, regulatory changes, and high-profile actions. With crypto-friendly leaders taking key positions, industry players are watching closely to see how policy shifts will impact crypto markets, regulations, and adoption in the months ahead.