We have gone through the first 100 days of President Donald Trump's second term, and this is an ideal time to assess how the crypto industry has benefited – or suffered – under his leadership.
Will Trump's policies and public support truly benefit the industry, or will the spotlight be too bright, blinding the 'party participants'?
Market performance
Despite the public support for Bitcoin (BTC), the price of the leading cryptocurrency has fallen during the new term of Trump, losing about 6% of its value since he took office.
BTC price fluctuations since the inauguration of U.S. Presidents | Source: CoinGecko
Notably, during the same 100-day period of Joe Biden's term, BTC surged over 50% despite the cryptocurrency community believing that the Biden administration has taken unfair actions against the industry.
In fact, Trump's first term – when he still called Bitcoin a 'scam' – also recorded nearly a 50% increase in the first 100 days, far exceeding the performance of the current term.
Reserve Fund and Digital Asset Warehouse
Part of the effort to 'embrace' cryptocurrency by the Trump administration is to find ways for the federal government to hold and access more digital assets. An executive order issued by Trump established the 'Strategic Bitcoin Reserve Fund', which stores some BTC already under the control of the federal government. However, most of this BTC is related to criminal and civil cases, and does not actually belong to the government.
Additionally, this order also created the 'National Digital Asset Reserve' – a place to hold several other cryptocurrencies. While the White House is looking to add more BTC to the reserve fund, they are also considering selling from the current reserves. Some proposals include selling U.S. gold or revaluing that gold to buy more BTC.
Unrealistic promises
Trump has kept at least some of the promises made during his campaign related to cryptocurrency, including pardoning Dread Pirate Roberts – Ross Ulbricht, the mastermind behind the infamous Silk Road black market.
However, some other promises have been entirely ignored, such as the declaration that all BTC will be 'produced in the U.S.'. Additionally, the World Liberty Finance project that Trump is involved with had also committed to 'restructuring the holding of U.S. public debt'.
However, to date, there has been no clear explanation of how they will implement this, and no signs that this plan has been executed.
Personnel nominations
One point that Trump uses to show friendliness towards the crypto industry is the senior personnel nominations, which often choose individuals sympathetic to the sector.
For example, Howard Lutnick, head of the Department of Commerce, previously led Cantor Fitzgerald – the entity managing the reserve fund for the largest stablecoin in the market, USDT.
Additionally, Paul Atkins, the new head of the U.S. Securities and Exchange Commission (SEC), has publicly criticized the previous administration's policies for tightening regulations on cryptocurrency, claiming that it stagnates innovation in the sector.
Legal issues
In a press conference that drew media attention, David Sacks – an advisor to the Trump administration – along with several Republican lawmakers announced plans to enact two laws: one regarding stablecoins and another regarding market structure, within the first 100 days of the term.
However, to date, both bills have yet to be signed into law. The stablecoin bill has passed at the committee level but has not been brought to a full vote, while the market structure bill remains at the committee level with no clear progress.
Senator Tim Scott had to postpone the personal deadline for completing these bills. However, even without new laws, agencies like the SEC, the Commodity Futures Trading Commission (CFTC), and the U.S. Department of Justice have cut back or restructured their dedicated law enforcement units in the cryptocurrency sector.
Some regulations have been revoked, including accounting guidance SAB 121 and the banking regulator's guidance on collaborating with cryptocurrency businesses.
Cryptocurrency projects linked to Trump
Even while serving as president, Trump continues to engage in and develop various cryptocurrency projects.
Among them, the World Liberty Financial project has approved a proposal to deploy a version of AAVE, although it has not yet been launched. This project has also undertaken various other actions without a vote, including plans to launch a stablecoin and acquire various tokens.
Additionally, the memecoin TRUMP also opens a new way to 'meet' the president: just by being among the holders of a large amount of this token. The HTX exchange – where billionaire Justin Sun acts as an advisor – seems ready to take advantage of this unique 'perk'.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We do not take responsibility for your investment decisions.