The second term of President Donald Trump has brought noticeable shifts within the digital currency landscape. We’ve witnessed a relaxation of regulations, the successful passage of legislation supporting cryptocurrency, and even the dismissal of legal challenges against prominent crypto firms. These factors have contributed to Bitcoin reaching record values, surpassing $124,000 in August.
Let’s delve into the key events shaping the world of digital currencies during Trump’s current time in office.
|
Month |
Key developments |
|---|---|
|
January |
The President introduces his own digital “memecoin” and establishes a dedicated cryptocurrency task force. |
|
February |
Trade policy sparks volatility in cryptocurrency markets. Lawsuits against several crypto exchanges are dropped, leading to a decline in Bitcoin’s value. |
|
March |
President Trump announces the creation of a national digital reserve for Bitcoin. A cryptocurrency summit takes place, however, Bitcoin’s price dips further. |
|
April |
The Securities and Exchange Commission (SEC) dismantles its cryptocurrency enforcement division. |
|
May |
The trend of trading digitized representations of real-world assets continues gaining traction. |
|
June |
The GENIUS Act, a bill designed to regulate stablecoins, is approved by the Senate. |
|
July |
The GENIUS Act is officially enacted into law. |
|
August |
The President instructs the Department of Labor to re-evaluate the rules about allowing alternative asset choices in 401(k) retirement plans. Wyoming introduces its own stablecoin. |
Upon his return to the White House in January, President Trump quickly made his presence known in the crypto world. He launched a memecoin named $TRUMP shortly before the inauguration. A few days following, he signed an executive order formally showing support for crypto innovation. This order resulted in the formation of a working group dedicated to aligning cryptocurrency strategies across all government agencies. Furthermore, the Securities and Exchange Commission (SEC) initiated a cryptocurrency task force to formulate regulations that are more favorable to the growth of the crypto industry.
February saw the effects of these policies playing out in markets and the legal system. Lawsuits against prominent crypto exchanges started being withdrawn, with the SEC dropping its lawsuit against Coinbase, ending its investigation into Robinhood’s crypto activities, and putting on hold the proceedings against Binance before the suit was eventually dropped in May. The cryptocurrency markets experienced a downturn, influenced by tariff worries and stubborn inflation figures, leading to a noticeable drop in the value of Bitcoin from its high point in January.
In March, the President signed an executive order that established a national Bitcoin reserve, that would contain Bitcoins seized in criminal and civil cases. It also creates a separate stockpile of assorted crypto tokens that were confiscated. Subsequently, on March 7, the White House convened a cryptocurrency summit, bringing together industry leaders to talk about digital currency’s trajectory and the new national reserve. Contrary to investor expectations that the government would procure digital coins for the reserve, prices dipped below $80,000.
Regulation continued to soften in early April. The Department of Justice (DOJ) dismantled its dedicated crypto-enforcement division, and stated that crypto investigations would be restricted to matters involving terror groups and drug cartels. This team, which was formed under the Biden Administration, brought high-profile cases against leading crypto exchanges, such as Binance and FTX which ultimately led to prison time and large fines. As tariffs shook the markets, Bitcoin reached its lowest level of the year at $76,312.