Trump's Cryptocurrency New Policy Intensively Launched: Relaxing Regulations and Strategic Reserves in Parallel
Since 2025, the Trump administration has continued to promote policy innovations in the cryptocurrency field, from relaxing regulations and strategic reserves to legislative norms, working hard to fulfill the promise of "making America the capital of cryptocurrency."
In terms of core policies, Trump signed an executive order in January to establish a digital asset working group, banning central bank digital currencies (CBDC) and exploring the establishment of a national cryptocurrency reserve. In March, he announced the inclusion of five cryptocurrencies, including Bitcoin and Ethereum, into the strategic reserve, and the government's holding of 200,000 Bitcoins would no longer be sold, a message that once pushed the market's market value to soar by $300 billion. In May, the Department of Labor completely withdrew the warning issued during the Biden administration regarding the investment of 401(k) plans in cryptocurrencies, granting employers investment autonomy. In July, Trump signed the "Genius Act," establishing a federal regulatory framework for stablecoins, requiring issuers to hold an equivalent amount of short-term U.S. Treasury bonds as reserves.
Behind the policy shift is the enormous donations from the cryptocurrency industry during the election period. Although the market reacted positively to the favorable policies, controversies persist: critics worry about the risks involved in retirement savings, that lax regulations may lead to risks, and that the Trump family’s involvement in cryptocurrency businesses may breed conflicts of interest. Currently, the U.S. cryptocurrency regulatory framework is still being improved, and the subsequent development of the industry and the effectiveness of policy implementation are under close attention. #美国宏观经济数据上链 #BTC
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Terraform Labs (referred to as TFL) is a blockchain company founded in early 2018 by Do Kwon and Daniel Shin in Seoul, South Korea. Its core project is the Terra blockchain, which went live on its mainnet in April 2019, using the Cosmos SDK and Tendermint consensus, focusing on algorithmic stablecoins and payment scenarios.
I. Core Products and Ecosystem
• Dual-token Mechanism: The ecosystem includes algorithmic stablecoins (such as UST pegged to the US dollar and KRT pegged to the Korean won) and the native governance/staking token LUNA, which maintains stability through burning/minting arbitrage.
• Key Applications: Incubated Anchor (high-yield savings protocol), Mirror (synthetic asset trading), Chai (Korean payment application), etc., which once propelled Terra to become one of the leading DeFi public chains.
• Financing Performance: Cumulative financing exceeded $200 million, with a $150 million ecosystem fund received in July 2021, with investors including well-known institutions like Galaxy Digital and Pantera Capital.
II. The 2022 Crash and Aftermath
• UST De-pegging Crash: In May 2022, UST and LUNA faced a liquidity crisis, with prices nearly approaching zero, triggering a massive shock in the crypto market, resulting in significant losses for users and institutions.
• Legal Issues and Bankruptcy: Faced a lawsuit from the SEC in 2022, filed for bankruptcy protection in January 2023, reached a $4.47 billion settlement with the SEC in June, and subsequently entered liquidation proceedings.
• Founder Accountability: Do Kwon was wanted by multiple countries on fraud charges, arrested in Montenegro in 2023, and faces criminal prosecution.
III. Impact and Lessons
• The failure of TFL is seen as a major lesson for the “unbacked” model of algorithmic stablecoins, prompting the industry to strengthen discussions on stablecoin risk control and regulation.
• Some communities subsequently forked into Terra 2.0, but its influence is far less than before the crash; the rise and fall of TFL has become one of the iconic events in crypto history.
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