In just his first week back in the White House, President Donald Trump has significantly impacted the cryptocurrency sector through a series of high-profile moves. These actions have spurred dramatic changes in the industry, from the launch of meme coins to regulatory reforms, leaving investors, businesses, and regulators scrambling to adapt.
1. Launch of $TRUMP Meme Coin
President Trump unveiled his own meme cryptocurrency, $TRUMP, on January 17, 2025, marking a bold move into the digital asset space. The token immediately gained traction, with its Fully Diluted Valuation (FDV) skyrocketing to $72 billion within hours of its release. The launch mirrored the earlier success of First Lady Melania Trump’s $MELANIA token, which also saw brief market enthusiasm. However, $TRUMP faced immediate challenges as it was revealed that 80% of its supply is held in a single wallet under a lock-up arrangement, raising questions about centralization and liquidity.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
Following the launch of $TRUMP, $MELANIA’s valuation dropped by over 50%, demonstrating the competitive nature of meme coins even within the Trump brand. As of January 21, $TRUMP’s FDV has fallen to $32 billion, and $MELANIA stands at $2.5 billion. Despite the downturn, these tokens have become a talking point in the crypto community, with debates over their utility and longevity gaining momentum.
2. Establishment of the Crypto Task Force
On January 21, 2025, President Trump signed an executive order creating a specialized Crypto Task Force aimed at shaping the regulatory future of digital assets. This task force includes representatives from key financial agencies such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury Department. Its primary mandate is to assess the viability of a U.S. digital dollar and establish guidelines for the integration of cryptocurrencies into the broader economy.
Major cryptocurrency companies, including Coinbase and Binance.US, have expressed interest in working closely with the task force. Their involvement highlights the industry’s desire to influence the regulatory framework that could determine the sector’s growth trajectory in the United States. Early drafts of the task force’s goals suggest a focus on balancing innovation with investor protection, with initial recommendations expected by mid-2025.
3. Pardon of Silk Road Founder
One of Trump’s most controversial moves was his pardon of Ross Ulbricht, the founder of the infamous darknet marketplace Silk Road, who had been serving a double life sentence without parole. This decision fulfilled a campaign promise and sparked intense public debate about justice reform and cryptocurrency’s role in facilitating illicit transactions.
— Ross Ulbricht (@RealRossU) January 24, 2025
Ulbricht, who has spent over 11 years in prison, expressed gratitude for his release on social media. His supporters, who have long argued that his sentence was excessively harsh, celebrated the move. However, critics warn that the pardon might embolden those using cryptocurrencies for illegal purposes, potentially complicating ongoing efforts to regulate the space.
4. Overturning of Tornado Cash Sanctions
A federal court in Texas ruled against the U.S. Treasury’s decision to sanction Tornado Cash, a cryptocurrency mixer often associated with privacy-focused transactions. The court stated that the Treasury had overstepped its authority by targeting a smart contract, arguing that such software cannot be owned or controlled by any single entity.
This ruling has significant implications for the privacy and legality of blockchain technologies. Privacy advocates hailed the decision as a victory for decentralized finance, while regulators warned it could make it more difficult to combat money laundering and other illicit activities. The case sets a precedent for how decentralized tools are treated under U.S. law, signaling a more nuanced approach to blockchain regulation moving forward.
5. SEC’s New Crypto Task Force
Acting SEC Chairman Mark Uyeda announced the creation of a new crypto-focused task force on January 21, 2025. Unlike the previous administration, which relied heavily on enforcement actions, this task force is designed to craft clear and actionable guidelines for the industry. SEC Commissioner Hester Peirce, often referred to as “Crypto Mom” for her pro-industry stance, has been appointed as its leader.
The task force’s initial objectives include clarifying the legal status of various digital assets and addressing the ongoing debate over whether cryptocurrencies should be classified as securities. Industry leaders have welcomed the move, hoping it will bring much-needed clarity and reduce regulatory uncertainty, which has often stifled innovation in the sector.
6. Appointment of Senator Cynthia Lummis as Chair of the Senate Banking Digital Assets Subcommittee
Senator Cynthia Lummis, a long-time advocate for cryptocurrencies and blockchain technology, was appointed as the chair of the newly established Senate Banking Digital Assets Subcommittee. This marks the first time a U.S. regulatory body has been created with an exclusive focus on digital assets. Her appointment signals a more focused and informed approach to shaping legislation in the rapidly growing sector.
Lummis, often called the “Crypto Senator,” has already laid out her agenda for the subcommittee. Her top priorities include crafting a clear regulatory framework for digital assets, addressing the tax treatment of crypto transactions, and pushing for the creation of a national Bitcoin reserve. Industry leaders have expressed optimism about her leadership, as she is seen as a key ally in ensuring the U.S. remains a competitive hub for blockchain innovation.
7. The Stargate Initiative: A $500 Billion Investment in AI and Crypto Integration
On January 20, President Trump announced the launch of the Stargate Initiative, a $500 billion investment aimed at bolstering American leadership in artificial intelligence (AI) and its integration with blockchain technology. This ambitious plan includes partnerships with major corporations like OpenAI, Oracle, and SoftBank, with the first phase focusing on building data centers in Texas to support AI and crypto-based projects.
The crypto sector stands to benefit immensely from this initiative, as it aims to explore synergies between AI and blockchain. Analysts predict that the integration of AI-driven algorithms with blockchain networks could revolutionize industries such as finance, supply chain management, and healthcare. The Stargate Initiative has already generated excitement among tech entrepreneurs, who see it as an opportunity to drive innovation in both fields.
8. Revocation of Biden-Era AI and Crypto-Related Executive Orders
President Trump wasted no time in reversing several executive orders issued by his predecessor, Joe Biden, including those related to artificial intelligence and digital asset oversight. One of the most notable reversals was the cancellation of an order that imposed strict public safety regulations on AI development, which many in the tech industry criticized as stifling innovation.
Trump’s new directive emphasizes a “freedom to innovate” approach, prioritizing economic growth and global competitiveness over restrictive oversight. Critics warn that loosening regulations on AI and crypto could lead to increased risks, such as the misuse of these technologies. However, supporters argue that the move aligns with Trump’s broader goal of fostering a pro-business environment and cementing the U.S. as a global leader in emerging technologies.
9. Repeal of SEC’s Controversial SAB 121
The SEC, under new leadership, repealed Staff Accounting Bulletin No. 121 (SAB 121), a controversial rule that required companies to record digital assets as both assets and liabilities on their balance sheets. The move was widely celebrated by the crypto industry, as the previous rule had deterred banks and financial institutions from adopting digital assets due to the complexity of accounting practices it imposed.
In its place, the SEC introduced SAB 122, which simplifies the accounting treatment for cryptocurrencies. Under the new guidelines, financial institutions are encouraged to integrate digital assets into their operations without the burden of double-entry reporting. This policy shift is expected to accelerate the adoption of cryptocurrencies in traditional banking systems, potentially unlocking billions in institutional investment.
10. Bitcoin Surges to $109,000 Before Correcting
The cryptocurrency market experienced extreme volatility during Trump’s first week in office, with Bitcoin hitting an all-time high of $109,000 on January 21, 2025. This surge was fueled by investor optimism over Trump’s crypto-friendly policies, including the establishment of the Crypto Task Force and regulatory clarity efforts led by the SEC.
However, the rally was short-lived. After Trump’s inaugural speech, where he did not explicitly address cryptocurrencies, the market saw a sharp correction. Bitcoin dropped by 5.5% within 24 hours, and other major tokens like Ethereum and XRP experienced similar declines. Analysts attribute the correction to a combination of profit-taking by investors and uncertainty over whether Trump’s policies would translate into sustained support for the sector.
Despite the correction, many market participants remain bullish on Bitcoin’s long-term prospects under the Trump administration. The combination of regulatory clarity and increasing institutional adoption could set the stage for another wave of growth in the crypto market.