Cryptocurrency 4.0 Era under Trump’s “Crypto Governance Model”
In April 2025, US President Donald Trump signed an executive order to formally establish the "Strategic Bitcoin Reserve" and the "US Digital Asset Reserve", marking the entry of cryptocurrency into a new stage of development - the cryptocurrency 4.0 era.
Under Trump's "crypto governance model", the cryptocurrency industry landscape has been reshaped. The US government not only regards Bitcoin as a strategic asset, but also has passed a series of policies such as the (Bitcoin Rights Act) and the (Strategic Reserve Bitcoin Act) to support the growth of the cryptocurrency industry.
This unprecedented action not only drove the price of Bitcoin soaring, but also triggered heated discussions around the world about the future development of cryptocurrencies. In this article, I will delve into how Trump's policies will shape the era of cryptocurrency 4.0 and its far-reaching impact on the market, investors, and the global economy. Here is an article I wrote last year: Trump has officially started the crypto governance mode! You can go and have a look.
1. Detailed explanation of Trump’s “encrypted governance model”
Trump's "crypto governance model" is a policy framework centered on supporting cryptocurrency and blockchain technology, aiming to make the United States the center of global cryptocurrency. The following are its core components:
1. Strategic Bitcoin Reserve
On March 7, 2025, Trump signed an executive order announcing the establishment of a "Strategic Bitcoin Reserve" (White House Fact Sheet). The reserve regards Bitcoin as a national reserve asset, and the funds come from Bitcoin obtained by the Treasury Department through criminal or civil forfeiture procedures. Key features include:
No-sell policy: The government promises not to sell its strategic reserve of Bitcoin and to keep it as a long-term store of value.
Source of capital: On the one hand, the approximately 200,000 BTC previously confiscated account for 1% of the global Bitcoin supply; on the other hand, it is the monthly fixed investment from local finances.
Strategic significance: The government has made it public and determined its legal status and value. At the same time, the government also regards it as a tool to hedge against inflation and currency depreciation, which further confirms the "digital gold" value of Bitcoin. It is only a matter of time before it surpasses gold in the future.
2. U.S. digital asset reserves:
In parallel with the Bitcoin reserve, the Trump administration has also established the "U.S. Digital Asset Reserve," which includes other cryptocurrencies besides Bitcoin. These assets also come from confiscation procedures, but unlike the Bitcoin reserve, the Treasury Department can decide to sell them based on market conditions. The goal is to centrally manage the government's digital assets to ensure transparency and maximize value.
3. Executive orders in support of the crypto industry:
On January 23, 2025, Trump signed an executive order to explicitly support the “responsible growth” of digital assets and blockchain technology (Pillsbury Law). The main contents include:
The establishment of a cryptocurrency department: under the National Economic Council, responsible for developing a new regulatory framework
Ban on Central Bank Digital Currency [CDBC]: Restrict government agencies from promoting CDBC and emphasize decentralized cryptocurrency.
Promote the development of USD stablecoins: Support USD-pegged stablecoins, such as USDC and USDT, to enhance the influence and hegemony of the United States in global finance.
4. Regulatory reform and personnel appointments:
Trump reshapes regulatory landscape by appointing crypto-friendly officials:
Paul Atkins: Former SEC Commissioner, nominated as SEC Chairman, advocates for clear regulation of the crypto industry (Reuters).
David Sacks: Silicon Valley investor who serves as special advisor on AI/crypto, coordinating crypto policy (Worth).
Policy adjustments: Repeal the Biden administration’s strict regulation of decentralized finance (DeFi) and suspend the SEC’s investigation into several crypto companies (The Guardian).
Together, these initiatives constitute Trump's "crypto governance model," which aims to promote the United States to become a global leader in cryptocurrency through policy support and relaxed regulation.
2. Definition and Characteristics of Cryptocurrency 4.0
The development of cryptocurrency can be divided into four stages, each of which represents an important evolution in technology and the market:
Core features of cryptocurrency 4.0:
Government involvement: Incorporating cryptocurrencies into strategic reserves at the national level gives them legitimacy and stability.
Regulatory Clarity: Regulation is always a good thing, and moving from a vague regulatory environment to a clear legal framework will reduce industry uncertainty.
Large institutions and large asset management companies have entered the market: BlackRock, MicroStrategy, Fidelity and other top global asset management teams have entered the market. The approval of Bitcoin ETF has further promoted its value. At the same time, the number of Bitcoin ETF institutions has surpassed that of gold.
Only BTC is bullish: As of April 30, 2025, in this round of bull market, only BTC has truly entered a bull market, while the price of ETH is the same as in the bear market.
3. How Trump’s policies promote the 4.0 era
Trump’s strategic Bitcoin reserve elevates cryptocurrency from a speculative asset to a national strategic asset, similar to the status of gold reserves.
This government-level recognition not only boosts market confidence, but also provides a reference model for other countries. In addition, regulatory easing and institutional participation further lower the investment threshold for cryptocurrencies and promote their mainstreaming.
Bitcoin price: After the announcement of the strategic Bitcoin reserve in March 2025, the price of Bitcoin quickly exceeded $100,000 from about $80,000. Other cryptocurrencies such as XRP and Solana also rose due to being included in the reserve plan. It is basically certain that Bitcoin will surpass Apple to become the world's second largest market value in this round of bull market.
The surge in investment institutions: Bitcoin ETFs from institutions such as BlackRock have become the main force in the market, holding more than 570,000 bitcoins in March 2025 (Cointelegraph). At the same time, the number of Bitcoin ETF institutions has officially surpassed that of gold.
Opportunities for investors: Government endorsement reduces the systemic risk of cryptocurrencies, making them suitable for long-term holding of mainstream assets such as Bitcoin. The issue of tariffs will make the turbulent financial situation even more precarious, so more investors will choose Bitcoin and gold as value-hedge assets.
4. Trump Team’s TRUMP Token
On January 18, 2025, one week before Trump officially took office, Trump announced the launch of a Meme coin named Trump on his social platform, which drove the price of the asset to soar, and the TRUMP coin came into being.
The price surged from an initial $0.18 to $75.35, and within two days it became the 19th most valuable cryptocurrency in the world. But it quickly fell, its market value shrank significantly, and eventually fell 90% from its peak.
The first round of the token issuance is 200 million. According to the official website, two entities under Trump hold 80% of the tokens. The 40 million tokens originally scheduled to be unlocked on April 18 are worth about $300 million, accounting for 20% of the circulation.
In the early stage of unlocking, the market generally expected negative news, but $TRUMP did not collapse immediately after unlocking on April 18. In particular, on April 23, the official website of "Trump Coin" announced that the top 220 users with the highest average holdings would be invited to a dinner, and the coin price soared. $Trump soared 50% in 24 hours, reaching a high of $14.71.
For the crypto world, Trump is almost one of the most uncontrollable variables, and in 2025, the president has been making frequent moves.
5. Trump’s impact on global finance and cryptocurrency
The United States’ leadership in cryptocurrency will have far-reaching implications for the global economy and policy:
First: the impact of strategic reserve of Bitcoin. After the United States announced the strategic reserve of BTC, El Salvador and Bhutan seem to have established their own strategic Bitcoin reserves. Other countries such as Brazil have proposals, and there are rumors in China, Japan and Russia, but no official confirmation.
Second: Regulatory competition and security, Europe’s MiCA regulations and Dubai’s VARA framework show that countries around the world are accelerating the formulation of encryption policies to attract businesses (AlphaPoint).
Third: The tariff trade war will accelerate the development of stablecoins. USDT has increased by more than 30% in global trade settlement in the past four years, with stablecoin transfers reaching 27.6 trillion US dollars in 2024. Cryptocurrency will promote financial inclusion, especially in the field of cross-border payments and remittances.
Fourth: With the reshaping of the global financial system, the hegemony of the US dollar will further decline, the demand for decentralized stablecoins will grow steadily, and at the same time, the global status of the euro and RMB will be further enhanced, and the number of black swan events will increase.
Fifth: The impact of Bitcoin’s price, the support of institutions and the promotion of Trump, the probability of BTC price exceeding 200,000 USD per coin in 2025 is more than 80%, which is also a historic moment. BTC’s bloodsucking situation will be more serious, and it can be said that there is no bull market for altcoins.
Trump's "crypto governance model" has ushered in the era of cryptocurrency 4.0 through strategic reserves, regulatory reforms, and policy support. This era, characterized by government participation and mainstreaming, has brought unprecedented opportunities to the cryptocurrency industry.
However, conflicts of interest, lax regulation and uncertainty in global competition have also brought challenges to the market and investors. In the future, cryptocurrencies may play a more important role in the global economy and become a key area of national strategy and international competition.
(Welcome to follow my official account to get more in-depth insights into cryptocurrency and the global economy!)
Finally: Many of the opinions in this article represent my personal understanding and judgment of the market and do not constitute any advice for your investment.