How Trump’s Second Term Reshaped U.S. Crypto Policy: Stablecoins, Regulators and Conflicts of Interest
President Trump’s second term accelerated a pro-crypto shift in U.S. policy through executive orders, high-level appointments and legislative pressure. Key developments include the passage of the GENIUS Act establishing a federal stablecoin framework, agency actions toward tokenization and leveraged spot products, and the appointment of crypto-friendly regulators (notably SEC Chair Paul Atkins and OCC head Jonathan Gould). The administration also pushed ideas such as federal bitcoin and token “strategic reserves” and sought broad digital-asset regulation. However, a Senate market-structure bill stalled amid procedural delays and a government shutdown, slowing some legislative progress and SEC approvals.
Parallel to policy shifts, concerns about conflicts of interest emerged after reports of large family holdings in projects such as World Liberty Financial (WLFI) and ties to meme tokens like $TRUMP and $MELANIA. House Democrats flagged potential corruption; the White House denied wrongdoing. The net effect for traders: expect short-term volatility around regulatory announcements and political developments, but increased medium- to long-term regulatory clarity for stablecoins and tokenization initiatives as agencies implement rules and the SEC pivots under new leadership. Key risks remain: governance gaps, unresolved market-structure reform, and political or reputational shocks tied to conflict-of-interest allegations.
Neutral
The combined coverage points to a mixed market impact. Positive drivers—passage of the GENIUS Act, agency moves on tokenization, and crypto-friendly regulatory appointments—create a clearer regulatory path for stablecoins and tokenization, which is supportive for relevant crypto sectors and may be bullish over the medium to long term. Offsetting factors include a stalled market-structure bill, a record government shutdown delaying approvals, and high-profile conflict-of-interest allegations tied to Trump and family projects. Those political and reputational risks increase short-term volatility and could produce regulatory reversals or targeted enforcement if scandals escalate. For traders this implies likely spikes in volatility around regulatory announcements and political events, selective strength for stablecoin-linked and tokenization-related assets as rules advance, but constrained upside until market-structure reforms and governance risks are resolved.