Crypto Policy at a Crossroads
A Turning Point for U.S. Digital Asset Regulation?
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The winds of political change bring new opportunities — and fresh uncertainties. As a new administration takes the reins, crypto finds itself in an unfamiliar position: a major policy talking point. Will this be the moment the U.S. finally gets crypto regulation right? Let’s break down what has happened in the new administration’s first month in office.
From Fringe to Front Page: Crypto’s Growing Clout
Once the domain of VC’s, bold entrepreneurs and degen crypto traders, crypto is officially going mainstream. A staggering 65% of voters now acknowledge the importance of U.S. leadership in blockchain, and 1 in 4 Americans owns crypto. Bitcoin ETFs skyrocketed from zero to over $100 billion in assets in record time. With Wall Street and Main Street becoming increasingly interested, there was hope that the new administration would embrace digital assets as a pillar of financial innovation.
So far, the signals have been… intriguing.
Power Players: The New Faces of Crypto Regulation
Government appointments are often a bellwether for policy direction, and the SEC remains the undisputed heavyweight in the crypto ring. Former SEC Chair Gary Gensler led with a contentious “regulation by enforcement” strategy, drawing ire from industry leaders. His successor, Paul Atkins, promises a different playbook. Atkins has argued that FTX’s collapse was a failure of governance and fraud — not of crypto itself. If his stance holds, the industry may finally get the regulatory clarity it has been begging for.
At the Treasury Department, Secretary Scott Bessent’s past investments in Bitcoin ETFs hint at a leadership that wants to engage productively with the digital asset space. While Secretary Bessent has divested his ETF holdings, this says more about a desire to avoid any conflicts of interest, a practice common among cabinet secretaries and in theory the President, than it does any new found bearish sentiment. Meanwhile, Commerce Secretary nominee Howard Lutnick, head of Cantor Fitzgerald, has deep ties to crypto through his firm’s involvement with Tether, the largest stablecoin in the world.
These appointments suggest a government that isn’t just paying lip service to blockchain — it’s paying attention.
Executive Order: Just Talk, or a Real Roadmap?
Paired with these key nominations that appear to have the necessary understanding and willingness to see blockchain innovation continue in America, the new administration included a nod to web3 in its deluge of executive orders. The executive order, titled Strengthening American Leadership in Digital Financial Technology, reads bullish and supportive of the space overall. While many executive orders exist primarily as messaging tools, a working group for further exploration around crypto policy is mandated by this order.
The U.S. has lagged behind global counterparts in defining crypto regulations. Countries like Singapore, Switzerland, and the EU have already set clear frameworks. The upside? The U.S. now has the advantage of hindsight. By studying these international models, America can cherry-pick what works while capitalizing on arbitrage opportunities — like the EU’s Markets in Crypto-Assets (MiCA) regulation, which led to the delisting of Tether (USDT) on major exchanges.
Only time will tell if this executive order and established working group delivers on its promises, but it’s definitely a step in the right direction.
Sovereign Wealth: How the US Could Leverage Crypto Assets
Besides the President’s executive order pertaining directly to the web3 industry, many commentators see a connection between Trump’s recent executive order to create a sovereign wealth fund and potential direct crypto investment by the federal government. While we haven’t seen much beyond speculation in recent months about creating a strategic Bitcoin reserve, including crypto assets as at least one component of a US sovereign wealth fund seems possible.
In 2021, the government seized over 50,000 Bitcoin from an illicit dark web marketplace. Now worth over $5B, this could be the first crypto allocation into a new sovereign wealth fund.
The Verdict: A Defining Moment for U.S. Crypto Policy
So, what’s next? The new administration has made some bold moves, but intentions mean nothing without execution. The appointments and executive orders suggest a break from the past, a pivot away from regulatory hostility toward a more structured, forward-looking approach, but it remains to be seen what makes it past the stage of political talking points.
I and many others in the industry hope for real, clear guidelines that foster innovation while protecting investors.
One thing is certain: The stakes have never been higher. The world is watching, and so is the market.
