Trump’s first week delivers for crypto backers
Bitcoin surged, miners celebrated, but questions arose over personal memecoin ventures
President Donald Trump wasted no time rewarding his crypto backers during his first week back in the White House. After securing tens of millions of dollars in campaign contributions from industry leaders, the new president delivered sweeping regulatory changes, skyrocketing Bitcoin’s value to record highs and sparking debates over memecoins tied to his name.
While crypto advocates celebrated a friendlier policy landscape, Trump’s ventures into the market’s more dubious corners left others questioning his motives.
During his inaugural week, Trump signed an executive order that promotes digital asset adoption and directs key regulatory agencies—the Treasury, SEC, and Commodity Futures Trading Commission—to form a task force evaluating cryptocurrency's role in U.S. financial strategy. The order also shields bitcoin miners and software developers from federal crackdowns and endorses U.S. dollar-pegged stablecoins while banning a Federal Reserve-backed digital dollar.
Benchmark’s Bill Gurley hailed the developments, describing the week as “better than [crypto leaders] could have imagined.” Brian Armstrong, CEO of Coinbase, echoed these sentiments, noting that under the Biden administration, the crypto industry faced what he called punitive and unclear regulations. Trump’s decisions have given industry giants like Armstrong and Binance CEO Richard Teng reason to believe a new era is underway.
Bitcoin responded to the optimism, climbing to an all-time high of $109,000 on Monday and stabilizing near $105,000 by week’s end, marking a 50% surge since Trump’s election victory in November.
Major regulatory shifts
The SEC’s reversal of its 2022 accounting rule, SAB 121, marked another significant victory for crypto advocates. Previously, the rule treated digital assets as liabilities on bank balance sheets, discouraging institutional adoption. SEC Commissioner Hester Peirce, now leading the agency’s new crypto task force, celebrated the repeal, writing, “Bye, bye SAB 121! It’s not been fun.”
The repeal has opened the door for financial institutions to expand their crypto offerings. CEOs of Goldman Sachs, Morgan Stanley, and Bank of America hinted at plans to explore digital assets more actively, signaling a potential shift in mainstream financial integration.
Trump’s pardon of Ross Ulbricht, founder of the Silk Road dark web marketplace, added a polarizing note to his pro-crypto agenda. Ulbricht, serving a life sentence since 2015, has long been a cause célèbre in the crypto community. Trump announced the pardon as a gesture toward the libertarian movement, which has supported him politically.
Critics argue that the pardon undermines efforts to distance the industry from its association with illicit activities, though many crypto advocates praised the decision.
Memecoins raise eyebrows
Controversy flared when Trump and First Lady Melania Trump launched their own memecoins, $TRUMP and $MELANIA, during a lavish Crypto Ball in Washington. While these tokens initially surged in value, they quickly plunged, with $TRUMP down over 50% and $MELANIA losing 80% of its value since launch.
The Trump Organization holds 80% of $TRUMP’s supply, raising concerns about self-enrichment and potential conflicts of interest. Critics, including Sen. Elizabeth Warren, labeled the venture as a “scam” and accused the Trumps of exploiting their positions for personal gain.
Despite the backlash, trading activity generated $58 million in fees on the first day alone, according to crypto analyst Conor Grogan.
The path ahead
While Trump’s executive order sets the stage for further crypto integration, it stopped short of a bold proposal to establish a U.S. bitcoin reserve. The idea remains under consideration but was notably absent from the order’s language.
As Trump’s administration unfolds, the crypto industry stands at a crossroads, buoyed by newfound support yet shadowed by the complexities of its ties to the president. The coming months will reveal whether this partnership will bolster the industry’s credibility or deepen its controversies.
