Trump’s Crypto Revolution: How a Pro-Bitcoin Administration Could Redefine the Digital Asset Landscape

As Donald Trump prepares to assume office once more, the crypto industry stands on the brink of transformation. Bitcoin’s surge past $75,000 following his election victory reflects renewed confidence in the possibility of a pro-crypto regulatory environment. With institutional adoption accelerating and the market maturing, Trump’s administration has the power to redefine the global trajectory of digital assets. The anticipated appointment of Paul Atkins as SEC Chair and the potential end of "Chokepoint 2.0" signal a groundbreaking shift—ushering in regulatory clarity that could legitimize the industry, attract global builders to the U.S., and unlock institutional capital on an unprecedented scale. For investors, these developments could mean unprecedented growth opportunities, as clearer regulations pave the way for crypto’s integration into traditional portfolios, driving long-term value and stability in this emerging asset class.

Day 1 Executive Orders

One of the most immediate ways President Trump could shape the future of crypto is through a series of executive orders addressing key regulatory and industry challenges, with some rumored to take effect within the first week of his presidency. Among the most significant proposals is the creation of a Bitcoin Strategic National Reserve, a bold move that could solidify Bitcoin’s role as a critical financial and strategic asset for the United States. Another key initiative involves forming a presidential crypto council comprising approximately 20 industry leaders, primarily founders and CEOs, alongside instructing the SEC to repeal SAB 121, which would ease restrictive accounting standards on digital assets. Additionally, Trump’s team has drafted more comprehensive crypto policies, including directing the SEC and CFTC to collaborate on digital asset regulation, fostering a more cohesive and streamlined approach to oversight. These, along with many other potential directives, underscore the administration’s commitment to establishing the U.S. as a global leader in crypto innovation and regulation. This section delves into the potential impact of these executive orders on crypto.

Bitcoin Strategic Reserve

One of the boldest proposals from Trump’s administration is the creation of a Bitcoin Strategic  Reserve (BSR). This initiative aims to position Bitcoin as a critical financial and strategic asset for the United States, akin to gold reserves in the past. The reserve is expected to be seeded with Bitcoin currently held by the U.S. Marshals (~80k Bitcoin or $8 billion, as the other 120k Bitcoin are being returned to Bitfinex customers), seized through various enforcement actions, redirecting these assets into national holdings rather than auctioning them off. 

To launch a full-scale Bitcoin Strategic Reserve (BSR), where the U.S. government holds Bitcoin as a reserve asset, Congressional approval would be essential. While executive orders could direct federal agencies to study and retain existing Bitcoin holdings on their balance sheets, large-scale accumulation—such as the rumored 1 million BTC—would require formal legislative authorization. The remaining 920,000 Bitcoin would need to be acquired through market purchases or over-the-counter (OTC) transactions, potentially funded in part by the United States’ gold reserves. This would necessitate congressional appropriations and regulatory amendments to formally classify Bitcoin as a strategic asset, marking a significant shift in U.S. monetary policy.

Figure 1: Theoretical Bitcoin Strategic Reserve If 1,000,000 BTC Held Since 2016

Source: 21Shares, Coingecko

To ensure long-term stability and strategic value, the Bitcoin in the reserve must be held for at least 20 years and cannot be sold unless used to pay off U.S. debt. The potential appreciation of Bitcoin over time could provide an unprecedented opportunity to address the national debt entirely, as rising demand and limited supply drive significant price increases. This move not only underscores the administration’s recognition of Bitcoin’s long-term value but also could create a powerful game theory effect, as other countries may rush to front-run the U.S. by accumulating Bitcoin for their own reserves. Such a global race to secure Bitcoin could drive demand exponentially higher, with some projecting that this dynamic could propel Bitcoin’s price to $500,000 or beyond. By positioning itself at the forefront of this emerging financial paradigm, the U.S. could not only secure a strategic advantage but also catalyze a dramatic transformation in the global monetary system.

Presidential Crypto Council

Another key initiative from Trump’s administration involves the formation of a presidential crypto council, comprising approximately 20 industry leaders, primarily founders and CEOs of leading blockchain and cryptocurrency companies. This council would serve as an advisory body to the administration, providing insights on the rapidly evolving digital asset landscape and helping to craft policies that foster innovation while addressing regulatory concerns. Key crypto figures such as MicroStrategy CEO Michael Saylor, Coinbase CEO Brian Armstrong, Circle CEO Jeremy Allaire, Cardano Founder and Ethereum Co-Founder Charles Hoskinson, and Ripple CEO Brad Garlinghouse are all rumored to be part of this influential group.

 By including voices from across the industry, the council aims to ensure that the government’s approach to crypto regulation reflects real-world challenges and opportunities. This initiative underscores the administration’s commitment to engaging directly with industry stakeholders, promoting collaboration between the public and private sectors, and positioning the United States as a global leader in blockchain innovation. Through this council, the administration seeks to strike a balance between innovation, regulation, and economic growth.

SEC Repeal of SAB 121

A significant rumored executive order from Trump’s administration involves instructing the SEC to repeal SAB 121, an accounting rule that has imposed stringent requirements on companies holding digital assets on behalf of clients. Repealing SAB 121 would relieve firms of the obligation to account for these assets as liabilities on their balance sheets, a practice that has deterred many financial institutions and custodians from entering the crypto space. The repeal would lower operational risks for companies, encourage broader institutional participation, and potentially accelerate the adoption of crypto services across the financial sector. Moreover, it would signal the administration’s commitment to fostering a more business-friendly regulatory environment, one that supports innovation while addressing industry challenges. By reducing regulatory friction, this move could significantly enhance the competitiveness of U.S.-based crypto firms and position the country as a global leader in digital asset custody and management.

SEC and CFTC Joint Collaboration on Crypto Market Structure

Another key executive order reportedly under consideration by Trump’s administration involves directing the SEC and CFTC to collaborate on a crypto market structure bill, building on the foundation laid by the FIT21 framework. This initiative aims to establish a unified regulatory framework for digital assets, addressing long-standing jurisdictional ambiguities that have left crypto assets caught between classifications as securities or commodities.

By fostering cooperation between these two agencies, the bill would create clear and consistent rules, reducing regulatory uncertainty and fostering innovation. Streamlined oversight and enhanced investor protections would provide much-needed clarity for crypto companies operating in the United States. Additionally, aligning the SEC and CFTC’s efforts could bolster the U.S.’s global competitiveness in blockchain innovation while ensuring financial stability. If enacted, this initiative could be a pivotal step toward modernizing digital asset regulation, providing the industry with the legal clarity needed for sustainable growth.

U.S. Secretary of State Leading Global Coordination on Crypto Innovation

Trump’s administration is reportedly considering tasking the U.S. Secretary of State with coordinating global crypto innovation efforts. This initiative would position the U.S. as a leader in shaping international blockchain standards, fostering cross-border collaboration, and promoting the adoption of crypto technologies. By engaging with foreign governments and global organizations, the U.S. could advance regulatory harmonization, combat illicit uses, and drive innovation in areas like trade and financial inclusion. This directive aims to strengthen America’s influence in the digital economy while ensuring U.S. interests are reflected in the global crypto landscape.

Ending Operation Chokepoint 2.0: Restoring Banking Access for U.S. Crypto Companies

Trump’s administration is expected to take immediate action to address the FDIC’s debanking of crypto companies and end the controversial “Operation Chokepoint 2.0.” This initiative, criticized for targeting legal industries like crypto through aggressive banking restrictions, has created significant challenges for the sector by limiting access to essential financial services. By instructing federal agencies, including the FDIC, to cease discriminatory practices against crypto companies, Trump’s administration aims to restore fair treatment and financial access for the industry. This move would provide much-needed stability, encourage innovation, and signal a pro-business stance that could attract more institutional players to the U.S. crypto market. Ending these restrictive policies would also reaffirm the administration’s commitment to fostering a competitive and transparent financial environment.

Several prominent crypto companies and platforms have reportedly been impacted by the policies and practices associated with "Operation Chokepoint 2.0," which aimed to limit banking services for certain industries, including crypto. Examples include:

Kraken: Faced challenges in maintaining banking relationships, limiting its ability to provide seamless fiat on- and off-ramps for customers.

Coinbase: Encountered difficulties securing and sustaining partnerships with traditional financial institutions due to heightened regulatory scrutiny.

Signature Bank:  Many crypto companies lost access to banking services following Signature Bank's closure, a situation exacerbated by regulators’ reluctance to support crypto-focused accounts.

Custodia Bank: Denied Federal Reserve membership and access to the Fed’s payment systems despite its compliance efforts, leaving it unable to serve its crypto clients fully.

Paxos: Struggled with intensified oversight and had its banking relationships impacted as regulators targeted stablecoin issuers.

Binance.US: Reported issues with banking services, including suspended fiat payment options, due to increased pressure on its banking partners.

Silvergate: After Silvergate Bank’s collapse, numerous crypto firms faced disruptions as it was one of the few banks heavily focused on the crypto sector.

These examples highlight the far-reaching effects of Operation Chokepoint 2.0, underscoring the importance of ending such practices to restore stability and fairness in the financial system

Trump’s Connections to Crypto: From Ownership to Industry Influence

Donald Trump’s connections to the crypto industry, both direct and indirect, reflect an evolving stance on digital assets and blockchain innovation. From launching his own NFT collection to fostering relationships with prominent crypto figures, Trump’s involvement has positioned him as a potential ally to the industry. He has publicly promoted the World Liberty Project and disclosed ownership of millions of dollars worth of cryptocurrency, signaling a personal and financial stake in the sector’s success. Combined with engagements with companies such as Coinbase and Ripple, these actions underscore a willingness to align with industry leaders. These connections highlight the administration’s potential to drive meaningful change in crypto policy and innovation.

Trump Official Meme Coin

As Donald Trump prepares to take office in 2025, his financial ties to crypto are becoming increasingly evident, raising speculation about how his administration may approach digital assets. The January 17 launch of the $TRUMP token on Solana, with Trump-linked entities controlling 80% of the supply, positioned him as one of the largest individual beneficiaries of a crypto asset, with his holdings valued at over $50 billion at its all-time high. While critics warn of potential conflicts of interest, the rapid integration of $TRUMP into major exchanges like Binance and Coinbase underscores the growing intersection of crypto and U.S. politics, suggesting that Trump’s administration may take a more active role in shaping digital asset regulations.

Figure 2: $TRUMP Metrics

Source: 21Shares, Yahoo Finance

Crypto Holdings

Trump has disclosed ownership of millions of dollars worth of cryptocurrency, which he reportedly acquired through business dealings, including payments made to him in digital assets. While he was initially critical of Bitcoin, this personal stake reflects a shift toward recognizing its financial potential.

NFTs

Trump has publicly engaged with NFTs, showcasing his recognition of blockchain’s potential to drive innovation and revenue. His involvement highlights a direct interest in leveraging digital assets as part of his broader approach to emerging technologies.

The World Liberty Project

The World Liberty Project, supported by Trump and run by members of his family, aims to promote blockchain adoption and financial independence. This initiative reflects Trump’s direct backing of efforts to advance blockchain innovation and position the U.S. as a leader in the digital economy.

Business Network with Crypto-Friendly Figures

Trump’s extensive business dealings have connected him with financial innovators and prominent figures in the crypto industry, including campaign donors and allies with investments in major crypto companies and blockchain startups. These relationships suggest that his network includes strong advocates for blockchain adoption who could play a significant role in shaping future policies. 

Trump Cabinet Members

Robert F. Kennedy Jr. (Secretary of Health and Human Services) has been a vocal advocate for Bitcoin, describing it as the "currency of freedom" and a hedge against inflation. He disclosed purchasing 14 Bitcoin for his children in 2023 and revealed that the majority of his net worth is invested in Bitcoin.

David Sacks (Crypto and AI Czar) appointment under the Trump administration marks a pivotal moment for the crypto industry, given his deep roots and strategic influence in the space. As an early investor in Bitcoin and backer of projects like Solana, dYdX, and BitGo, Sacks has consistently demonstrated his belief in crypto’s transformative potential. His ties to leading firms like Multicoin Capital and relationships with prominent figures such as Coinbase’s Brian Armstrong and Chamath Palihapitiya further solidify his position as a key figure in shaping the future of blockchain innovation.

Paul Atkins (Chair of the SEC), a former SEC commissioner and advocate for financial innovation, has deep ties to the crypto industry through his role as CEO of Patomak Global Partners LLC. His firm specializes in helping crypto-native companies navigate regulatory compliance and advises Fortune 500 firms, DeFi platforms, and traditional financial institutions on integrating digital assets. Atkins’ work reflects a profound understanding of the crypto ecosystem, aligning with the industry’s push for clear, supportive regulatory frameworks.

JD Vance (Vice President) is a notable advocate for Bitcoin and the broader cryptocurrency industry, with Bitcoin holdings valued between $250,000 and $500,000. Vance’s ties to the San Francisco venture capital scene, particularly through his collaboration with Peter Thiel, have further deepened his connection to crypto. Together, they have invested in blockchain startups, reflecting a shared belief in crypto’s transformative potential. Beyond his investments, Vance has actively supported pro-crypto legislation, including measures to protect banks from regulatory pressures to sever ties with crypto firms, signaling his commitment to fostering a more crypto-friendly regulatory environment in the United States.

Elon Musk (Co-Head of D.O.G.E) has significantly influenced the crypto market through corporate investments and personal ownership of digital assets. Tesla’s $1.5 billion Bitcoin purchase in 2021 and Musk’s disclosed holdings of Bitcoin, Ethereum, and Dogecoin reflect his belief in the potential of cryptocurrencies. Musk has publicly supported blockchain technology, frequently highlighting its use cases in creating decentralized financial systems and improving transaction efficiency.

‍Vivek Ramaswamy (Co-Head of D.O.G.E), co-founder of Strive Asset Management - a financial services firm with $2b AUM, is a strong advocate for cryptocurrency and blockchain technology, having launched initiatives like the Strive Bitcoin Bond ETF and proposing to back the U.S. dollar with Bitcoin. He has also championed clear crypto regulations and self-hosted wallet protections, emphasizing the importance of innovation and financial freedom

‍Howard Lutnick (Secretary of Commerce), CEO of Cantor Fitzgerald and President-elect Donald Trump's nominee for Secretary of Commerce, has significant ties to the cryptocurrency industry. Under his leadership, Cantor Fitzgerald manages Tether's U.S. Treasury and bond portfolios and has acquired a 5% stake in Tether. Lutnick has publicly stated that he personally holds "hundreds of millions of dollars" in Bitcoin, with ambitions for his investments to reach "billions." As Secretary of Commerce, his pro-crypto stance could influence U.S. economic policy to support digital asset growth and integration into the broader financial system.

Scott Bessent (Secretary of the Treasury), founder of Key Square Group, is a prominent advocate for cryptocurrencies, particularly Bitcoin. His financial disclosures reveal a personal investment between $250,001 and $500,000 in Bitcoin ETPs. As Treasury Secretary, his pro-crypto stance could influence the development of balanced regulations, potentially fostering innovation and integrating digital assets into the U.S. financial system. 

The Trump administration’s roster of pro-crypto leaders highlights a concerted effort to embrace blockchain technology and digital assets as cornerstones of U.S. financial innovation. Beyond figures like Paul Atkins, Howard Lutnick, and Scott Bessent, others such as Russell Vought, Pete Hegseth, Lori Chavez-DeRemer, Tulsi Gabbard, and Stephen Miran further strengthen the administration's pro-crypto stance. Notable policymakers like Elise Stefanik, Jared Isaacman, Kelly Loeffler, and Ronald D. Johnson, alongside advocates like Sean Duffy, Doug Collins, Kimberly Guilfoyle, and Dan Bishop, bring diverse expertise and influence to shape balanced regulations. Together, this team represents a bold and unified vision for integrating digital assets into the broader economy while ensuring the U.S. remains at the forefront of the global blockchain revolution.

SEC’s Shift in Stance Could Pave the Way for Expanded Crypto Spot ETPs

A revamped SEC under the new administration is poised to redefine the regulatory landscape for crypto, effectively legitimizing the industry and creating an environment where innovation can thrive. By implementing clear and fair regulations, the SEC would signal to builders and developers worldwide that the United States is open for business, attracting top talent and projects to establish themselves within its borders. This regulatory clarity is also expected to unlock institutional capital, as major players in traditional finance gain the confidence to invest in digital assets with the assurance of legal protections and oversight. 

Furthermore, the SEC’s more progressive stance significantly increases the likelihood of approving multiple crypto spot ETPs, including SOL, XRP, and LTC, paving the way for broader adoption and integration of these assets into traditional investment portfolios. This pivotal shift not only validates the crypto industry but also positions the U.S. as a leader in the next era of financial innovation.

Geopolitical Impacts on Crypto

Under the new Trump administration, the geopolitical landscape for crypto could shift dramatically as the U.S. positions itself as a global leader in blockchain innovation. By fostering a pro-crypto regulatory environment, the administration could encourage allies to adopt similar frameworks, creating a network of crypto-friendly nations and strengthening economic partnerships. 

This approach could also serve as a counterbalance to China's growing dominance in blockchain technology and its efforts to internationalize the digital yuan. The administration’s emphasis on a Bitcoin Strategic National Reserve further signals a commitment to securing a competitive edge in the digital asset economy, potentially spurring a global race among nations to accumulate Bitcoin and other digital assets. These policies could enhance the U.S.'s influence in shaping global crypto standards, trade agreements, and innovation, ensuring that American remains a powerhouse of the financial system.

Broader Regulatory Landscape

The broader regulatory landscape under the new Trump administration is expected to undergo a significant transformation, with policies aimed at providing clarity and fostering innovation in the crypto industry. By aligning agencies such as the SEC, CFTC, IRS, and FinCEN under a cohesive framework, the administration could eliminate overlapping jurisdictions and regulatory uncertainty that have long hindered the industry’s growth. This unified approach would establish clear tax guidelines, streamline compliance processes, and create fair market conditions for crypto businesses and investors alike. Additionally, the adoption of a comprehensive crypto regulatory framework could further support the integration of digital assets into traditional finance. Such comprehensive reforms would not only attract institutional capital and global talent but also position the U.S. as the leader in the global race for blockchain adoption, setting the stage for sustainable growth in the digital economy.

Options Data Reflects Market Optimism Under Trump’s Incoming Presidency

As Donald Trump prepares for his second inauguration, Bitcoin markets are reacting with a notable surge in bullish sentiment. Deribit’s options data suggests that traders are increasingly positioning for upside potential, reflecting optimism about crypto-friendly policies and broader macroeconomic factors that could support Bitcoin’s growth.

This bullish positioning is further reinforced by activity in end-of-month January 31, 2025, spot BTC ETP call options, where traders are aggressively targeting key strike levels. The $105,174 strike holds the highest contract volume at 7,964 contracts, signaling strong conviction in Bitcoin maintaining elevated levels. Meanwhile, the $108,680 and $113,939 strikes also show significant open interest at 4,987 and 4,486 contracts, respectively, suggesting broader expectations of sustained price strength. Additionally, heavy trading volumes at $101,669 and $106,927 indicate increasing demand for upside exposure.

Figure 3: BTC ETP Call Options Volume

Source: 21Shares, Yahoo Finance

This surge in call option activity, especially in the $105k+ range as shown in figure 4, reflects growing market expectations for a higher Bitcoin price under a Trump presidency, as traders begin pricing in potential executive orders that could foster a more favorable regulatory environment for crypto.

Figure 4: BTC ETP Call Options Strike Range (%)

Source: 21Shares, Yahoo Finance

This aligns with Deribit’s options data, where the $110,000 and $120,000 call strikes collectively account for nearly 18% of total open interest, reinforcing the market’s expectation of a continued rally. The strong demand for these options reflects heightened confidence in Bitcoin’s long-term trajectory, driven by optimism around institutional adoption, macroeconomic conditions, and potentially favorable regulatory shifts under the incoming administration.

Further supporting this bullish outlook, call options significantly outweigh puts in the spot BTC ETP market, emphasizing traders' preference for upside exposure over downside protection. This mirrors Deribit’s call-to-put ratio of 1.65, which signals a market leaning heavily toward speculative bets on further price appreciation. A call-to-put ratio above 1 typically indicates bullish market sentiment, with a tilt toward speculative bets and hedging strategies that anticipate further gains. However, it's worth noting that some of this call volume may stem from complex options spreads rather than outright directional bullish positions.

Bitcoin has demonstrated strong performance across multiple presidential administrations, highlighting its resilience regardless of political leadership. Historical data from election night to the next election night four years later reveals how Bitcoin reacts to a new administration, showing how markets price in expectations for a president’s policies rather than reflecting their full term’s performance. This trend has held true during both Trump’s (2016-2020) and Biden’s (2020-2024) presidencies, suggesting that Bitcoin’s trajectory is shaped more by macroeconomic forces than political leadership.

Figure 5: BTC Price Performance (%) During Both Presidencies

Source: 21Shares, Yahoo Finance

As Trump prepares to take office on January 20, 2025, Bitcoin is already seeing strong gains, with options flow and spot BTC ETP positioning signaling bullish sentiment. Traders appear to be pricing in a more favorable regulatory environment for crypto, positioning Bitcoin for a potential move beyond the $108k all-time level. While it remains to be seen whether this momentum will be sustained, the current data reflects growing confidence in Bitcoin’s long-term strength, reinforcing its role as an apolitical asset—one that thrives under both Republican and Democratic administrations, driven more by monetary policy, institutional adoption, and technological advancements than by shifts in political power.

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