Trump’s change in attitude

In the global political and financial arena, Trump’s relationship with cryptocurrency has become a topic of intense interest. From initially criticizing cryptocurrency to now actively promoting crypto-related initiatives, Trump’s shift in attitude is dramatic, driven by complex political and economic factors.

Image Source:https://hk.finance.yahoo.com/news/

During his first term, Trump was highly critical of cryptocurrency, calling its value unstable and comparing it to “thin air.” He also pointed out that unregulated crypto assets could facilitate illegal activities, such as drug trafficking, and emphasized that issuers must be strictly regulated under banking laws. As recently as August 2021, he still believed that cryptocurrency could be a “disaster waiting to happen.”

However, 2022 marked a turning point. As Trump prepared for a second presidential run, he released NFT products featuring his likeness, which sold out within a day, earning him $4 million. This not only demonstrated his social popularity but also opened the door to collaboration with crypto industry leaders. Subsequently, Trump issued NFTs multiple times, with increasingly sophisticated marketing campaigns. Large buyers even had the opportunity to dine with him. During the 2024 election campaign, a super PAC formed by cryptocurrency supporters invested heavily to support Trump’s campaign. At this time, Trump promised to end enforcement actions against cryptocurrencies, relax regulations, and vowed to make the U.S. the “capital of cryptocurrencies” and a “global Bitcoin superpower.”

In January 2025, President-elect Trump launched a cryptocurrency named after himself—TRUMP—which saw a 600% surge in market value overnight. On March 7, 2025, he signed an executive order to establish a strategic Bitcoin reserve, referring to Bitcoin as “digital gold,” and hosted a crypto summit. At the summit, Trump explicitly stated that the U.S. federal government would strongly support the development of cryptocurrencies, particularly Bitcoin, and the digital asset market. He declared that the “war” on the cryptocurrency industry by the previous administration had ended and actively supported Congress in passing legislation to provide regulatory certainty for the cryptocurrency and digital asset markets.

TRUMP spot trading link
:https://www.gate.io/trade/TRUMP_USDT

Analysis of the Reasons for Trump’s Transformation

(1) Political Campaign Funding Needs

Funding is a critical factor in elections. Crypto industry leaders, with their substantial financial resources, hope to gain policy advantages by supporting politicians. Trump’s campaign team realized that embracing the cryptocurrency industry could attract significant campaign funds. For example, a crypto-backed PAC named Trump 47 raised 7.5 million dollars in cryptocurrency donations for Trump in just 4 months. In the sprint stage of the 2024 election, a super political action committee composed of cryptocurrency supporters invested nearly 250 million dollars, 250 million, helping Trump far surpass his opponents in fundraising.

(2) Appealing to Emerging Voter Groups

Cryptocurrencies are popular among young men and some minority groups. Trump’s team believes that supporting cryptocurrencies can help win the support of swing state voters, such as those in western Pennsylvania and southwestern Michigan. The attention of key demographic groups in these areas to cryptocurrencies has led Trump to use crypto as an important tool to secure votes.

(3) Personal Business Interests

The Trump family has deep ties to cryptocurrency projects. He founded the “World Freedom Financial” platform for trading crypto assets, serving as its “Chief Crypto Advocate.” Among the platform’s top executives are Trump and his three sons. Additionally, the “meme coins” issued by Trump and his family could generate significant profits for their entities. This potential for business gains is a major reason for his change in attitude.

Trump’s Push for Crypto Reform

Trump has been a key driver in advancing cryptocurrency legislation. On March 13, the U.S. Senate Banking Committee passed the Stablecoin Regulation Act, also known as the “Guidance and Establishment of the U.S. Stablecoin National Innovation Act” (GENIUS Act), by a vote of 18 to 6. This marks a crucial step toward integrating cryptocurrencies into the mainstream U.S. financial market. Trump has been vocal in supporting “innovation and Bitcoin” since his presidential campaign, claiming he would make the U.S. the “global capital of cryptocurrencies.” At the White House crypto summit on March 7, he urged lawmakers to pass stablecoin legislation before the August recess. On March 20, he reiterated his support for stablecoin legislation at the New York Blockworks crypto conference, emphasizing that it would strengthen the dominance of the U.S. dollar.

Image source:https://finance.caixin.com/2025-03-09/102296320.html

In addition to pushing legislation, Trump has also influenced the crypto industry through executive orders. On March 6, U.S. crypto affairs official David Sachs announced on social media that Trump had signed an executive order to establish a strategic Bitcoin reserve. This reserve will be capitalized with approximately 200,000 Bitcoins owned by the federal government, which will be retained as a store of value, with no Bitcoins being sold. The executive order also establishes a U.S. Digital Asset Reserve, which includes digital assets other than Bitcoin seized in criminal or civil litigation. Earlier, in January, Trump issued an executive order to establish the Presidential Digital Asset Market Working Group to strengthen the U.S.’s leadership in digital finance, including developing a federal regulatory framework for managing digital assets, such as stablecoins, and assessing the establishment of a strategic national digital asset reserve.

From a market perspective, Trump’s actions have caused fluctuations in the crypto market. After announcing plans to include SOL in the new U.S. crypto strategic reserve, the value of SOL surged to over 160 percoin, with a daily increase of about 10%. Trump’s self-named cryptocurrency, TRUMP, saw its total market value exceed $10 billion at one point, but by March 7, its price had fallen by more than 80% from its peak.

SOL spot trading address
:https://www.gate.io/trade/SOL_USDT

For the global encryption industry, the series of measures taken by Trump, as a financial powerhouse, will have far-reaching implications. On the one hand, if stable coin legislation proceeds smoothly, the regulatory environment for the US encryption industry will gradually become clearer, which may attract more encryption currency enterprises and investors to enter the US market and further promote the industry’s development. On the other hand, the US’s discourse power in the global encryption currency field may be enhanced, and other countries may re-examine their own encryption currency policies to cope with the competitive pressure brought about by changes in US policies.

Trump’s Impact on the U.S. and the Crypto Industry

(1) Changes in the U.S. Regulatory Environment

Trump’s promise to relax crypto regulations will alter the regulatory landscape of the U.S. crypto industry. The SEC recently dismissed multiple cases against crypto companies, leading crypto executives to believe the industry has been freed from the regulatory threats of the Biden administration. In the future, the U.S. may establish more lenient crypto rules, promoting industry growth and attracting more crypto companies and investors.

(2) Increased Financial Market Volatility

Trump’s crypto initiatives have triggered market volatility. Bitcoin’s price rose by 9% within 24 hours to around $93,000 after he announced plans to create a strategic Bitcoin reserve. Meanwhile, ‘Trump Coin’ quickly dropped in price after his inauguration, causing over 813,000 encrypted wallets to lose 2 billion in three weeks. Such significant price fluctuations reflect the instability of the crypto market and increase investor risks..

(3) Reshaping the Global Crypto Landscape

As a global financial powerhouse, the U.S., under Trump’s changing stance on crypto, may trigger a reshaping of the global crypto landscape. Other countries may reconsider their crypto policies, and some nations that were previously cautious about crypto may adjust their positions in response to U.S. actions. At the same time, the U.S.’s influence in the global crypto space may grow, attracting more crypto projects and capital flows into the country.