Trump’s First Year: A Crypto Policy Revolution with Growing Pains

President’s Pro-Crypto Agenda Brings Historic Legislative Wins Amid Political Turbulence

In the shadow of the U.S. Capitol, a quiet revolution is taking place in American financial policy. This week marks one year since Donald Trump reclaimed the presidency with significant backing from crypto enthusiasts, initiating a dramatic policy shift that has transformed the digital asset landscape from regulatory battleground to priority economic sector. The past twelve months have witnessed unprecedented progress for cryptocurrency regulation, even as political challenges threaten to undermine some of the administration’s ambitious goals.

“We’ve aged many years in this tumultuous 12 months,” confided one industry lobbyist, capturing the rollercoaster experience that has defined the crypto sector’s first year under Trump’s second term.

Executive Action and Legislative Breakthrough Reshape Digital Asset Landscape

President Trump wasted no time demonstrating his commitment to cryptocurrency advancement, issuing executive orders that prioritized friendly crypto policies and directed the establishment of a government bitcoin reserve. These early actions signaled a dramatic departure from the previous regulatory approach.

“Since day one he has issued executive orders and moved for agencies to pay attention to digital assets and how blockchain can increase transparency across the government,” noted Cody Carbone, CEO of the Digital Chamber, in an interview.

Perhaps the most significant achievement came with the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), marking the first major cryptocurrency legislation to become federal law. The bipartisan effort represented a stunning turnaround for an industry that just three years earlier had been reeling from high-profile collapses and fraud investigations.

The Treasury Department and banking regulators have already begun implementing the legislation, though the process requires extensive public comment periods and multiple rule proposals before completion. Industry stakeholders view this framework as a crucial first step toward comprehensive regulation that balances innovation with consumer protection.

Strategic Appointments Transform Regulatory Landscape

The administration’s regulatory appointments have proven equally consequential for cryptocurrency policy development. Trump’s selection of Paul Atkins to lead the Securities and Exchange Commission represented a significant victory for the industry. Atkins, a known crypto supporter, quickly made developing friendly policies his primary focus and has promised concrete rule proposals in the coming months.

Jonathan Gould, a former cryptocurrency lawyer, now heads the Office of the Comptroller of the Currency, further strengthening the industry’s position within the financial regulatory framework. These appointments represent a fundamental shift in approach from the enforcement-focused strategies that dominated previous administrations.

“The past year has delivered what many thought impossible: a complete reversal of federal crypto policy, transforming America from a jurisdiction defined by regulation-by-enforcement to one that’s racing to lead the global digital economy,” said Kristin Smith, president of the Solana Policy Institute, highlighting the significance of these regulatory changes.

The administration’s appointments and policy actions have already yielded tangible results for the industry. Summer Mersinger, CEO of the Blockchain Association and former U.S. commodities regulator, observed: “We’ve seen digital asset companies reshore operations, expand their presence and grow headcounts as a result of President Trump and a pro-crypto Congress.”

Government Shutdown and Political Volatility Threaten Progress

Despite these achievements, Trump’s characteristic volatility has created obstacles for the crypto agenda. The ongoing federal government shutdown—now the longest in U.S. history, surpassing the previous record set during Trump’s first term—has significantly impeded progress on critical legislation, particularly the Digital Asset Market Structure bill that many consider the centerpiece of comprehensive cryptocurrency regulation.

Polling consistently shows voters attributing responsibility for the shutdown primarily to Trump and congressional Republicans, creating political headwinds that could impact future legislative efforts. The budget impasse has not only redirected lawmaker attention but also furloughed federal staff essential to drafting legislation and implementing existing policies.

Even before the shutdown, legislative negotiations had reached a delicate juncture, with some Senate Republicans expressing reservations about advancing their chamber’s version of the House-passed Digital Asset Market Clarity Act. Industry lobbyists have privately adjusted their expectations, with some now anticipating comprehensive market structure legislation might not materialize until 2027, as the approaching midterm elections threaten to transform Capitol Hill into a partisan battlefield where bipartisan cooperation becomes increasingly difficult.

The shutdown has also stalled crucial product approvals and public offering applications requiring SEC authorization, creating a bottleneck for companies seeking to expand their operations within a regulated framework. Meanwhile, the bitcoin reserve initiative, despite its prominence in Trump’s executive orders, remains in early planning stages, with insiders suggesting congressional action may be necessary to establish the proposed funds.

Ethical Concerns and Political Challenges Emerge

As the cryptocurrency industry solidifies its political alliances, concerns about potential conflicts of interest have intensified. Trump’s personal stake in various digital asset businesses spans virtually every corner of the sector, raising questions about the administration’s policy motivations. These concerns peaked when major holders of Trump’s memecoin—many reportedly foreign nationals—were invited to a private dinner with the president, with the administration declining to disclose attendee identities.

While Trump has successfully appointed crypto-friendly regulators to key positions, including the SEC and OCC, his administration has faced setbacks, including the withdrawal of his initial nominee for CFTC chairman. These challenges highlight the complexity of navigating Washington’s political landscape, even with unified Republican control of government.

Industry leaders from major platforms like Coinbase, Ripple, Tether, and Gemini have established close relationships with the administration, frequently participating in White House crypto events and policy celebrations. However, this growing corporate proximity comes as Trump’s overall public approval deteriorates significantly. Recent polling shows 58% of Americans disapproving of his performance, with particularly concerning declines among the younger voters who had supported his return to office.

Future Outlook: Bipartisanship May Become Necessity

This week’s state-level elections, widely viewed as potential indicators for next year’s congressional midterms, suggested a possible Democratic resurgence that could threaten Republican control of Congress. If this trend continues into the 2026 midterms, Democrats might reclaim the House majority, ending unified Republican control of government and forcing a more bipartisan approach during Trump’s final two years.

Despite these potential political challenges, the cryptocurrency industry has achieved unprecedented policy progress during Trump’s first year back in office. The GENIUS Act provides the first comprehensive federal framework for stablecoins, while regulatory appointments have shifted government agencies toward innovation-friendly approaches after years of enforcement-focused policies.

As the administration enters its second year, the cryptocurrency landscape has fundamentally transformed. America has pivoted from regulatory hostility toward digital assets to actively competing for leadership in the global cryptocurrency economy. While significant challenges remain—particularly passing comprehensive market structure legislation and navigating political volatility—the industry has established a foundation for continued growth and mainstream integration.

“This year represents just the beginning of America’s crypto renaissance,” remarked one industry executive. “The regulatory clarity we’ve achieved will enable innovation that was simply impossible under previous frameworks.”

For an industry that has spent years fighting for legitimacy within the U.S. financial system, Trump’s first year has delivered tangible policy victories that seemed unimaginable just months before his election. As the administration navigates growing political challenges, the cryptocurrency sector’s newfound influence in Washington suggests its policy priorities will remain central to America’s economic agenda, regardless of the political winds ahead.