Trump has ‘set free’ US crypto sector and it could be a global game-changer

Since 2009, cryptocurrency has evolved from an obscure technological experiment into a trillion-dollar industry.

In the US alone, 28 percent of adults—an estimated 65.7 million people—own cryptocurrency today, up from just 15 percent in 2021.

President Donald Trump has moved to put his stamp on the industry, laying out a bold new plan for America's digital assets.

His latest executive order proposes new digital asset regulations and explores the creation of a national cryptocurrency stockpile, waving a promise to quickly overhaul US crypto policy.

However, this isn't just any other government paper. It's Trump's way of shouting from the rooftops that America is ready to embrace the wild world of digital money. And it's got everyone from Wall Street bigwigs to tech whizzes sitting up and taking notice.

The much-anticipated action ordered that banking services for crypto companies be protected, alluding to industry claims that US regulators have directed lenders to cut crypto companies off from banking services - something regulators deny.

Unlike previous administrations, which focused on regulating and limiting the crypto industry, Trump's order actively promotes its expansion—a decision that could have far-reaching consequences beyond US borders.

"Today’s crypto executive order marks a sea change in US digital asset policy," said Nathan McCauley, CEO and co-founder of crypto company Anchorage Digital.

"By taking a whole-of-government approach to crypto, the administration is making a significant first step toward writing clear, consistent rules of the road."

Trump's presidency appears to usher in a bull market for digital assets day by day, after promises on the campaign to make the US the “crypto capital of the planet” and a “bitcoin superpower”.

The new president is sending a clear message to the world: "America is open for crypto business." But what does this mean for other countries?

‘A bold move’

His recent move is a 180-degree shift from the cautious stance of his predecessor, Joe Biden.

Instead of prioritising government-controlled digital currencies, Trump’s administration is leaning into private sector-led solutions such as stablecoins.

The executive order prohibits the creation of a US Central Bank Digital Currency (CBDC), promotes the use of stablecoins like USDT and USDC and introduces the idea of a National Digital Asset Stockpile derived from government-seized cryptocurrencies​.

The US government has revoked previous restrictive measures, allowing banks to provide crypto-related financial services and removing regulatory barriers that had stifled industry growth​.

Bora Erdamar, Founder and Director of BlockchainIST Center and an Assistant Professor of Economics at Bahcesehir University, sees this as a policy shift rather than mere rhetoric, explaining how his administration has already made a series of “bold moves” in favour of digital assets.

“For the first time in human history, a US President created a token in his own name $TRUMP, which was controversial from many aspects, and faced lots of ethical criticisms, even by crypto enthusiasts.”

His administration has signalled that Gary Gensler, the current Securities and Exchange Commission (SEC) chair, will be removed, a move welcomed by crypto advocates who viewed his strict regulatory stance as a “major roadblock” for the industry.

Towards a more open regulatory approach

Trump’s policies could have significant global repercussions, as governments that have taken a more cautious approach to cryptocurrency may feel pressure to adapt.

“By banning the development of a CBDC and instead throwing its weight behind private sector stablecoins, the US is charting a course that diverges sharply from many of its international counterparts,” Erdamar tells TRT World.

The US banking system’s renewed involvement in digital assets—now unrestricted from regulatory barriers that previously limited crypto-related financial services—could influence financial institutions worldwide​.

“It is almost certain that many other countries will have to re-position their policies in a more crypto-friendly direction if they have not done so,” says Prof Erdamar, noting that this change will not go unnoticed.

The European Union’s regulatory framework, particularly under the Markets in Crypto-Assets (MiCA) regulation, may also face challenges.

The EU’s measured approach contrasts sharply with the US emphasis on private-sector stablecoins over government-controlled digital currencies.

If American crypto markets expand rapidly under this new regulatory environment, European regulators may find themselves debating whether their policies need to evolve.

In the coming months, all eyes will be on how other nations respond to America's crypto gambit. Will they embrace the blockchain revolution, or double down on centralised control?

The US has laid the groundwork for a financial transformation that could either encourage broader deregulation or deepen the divide between governments that welcome crypto and those that resist it.

Erdamar believes that the full impact of these policies remains to be seen.

"Time will show the growth path of the crypto ecosystem, and hopefully this growth will not only be a local one and will lead to social welfare improvement for the world, as Satoshi Nakamoto intended," Erdamar concludes.