The early days of the Trump administration showed signs that digital assets might not be regulated as securities. However, many experts and practitioners were disappointed because there were no significant regulatory changes or clear guidelines. Critics argued that the administration’s actions, such as task forces, executive orders, and press conferences, were more performative than substantive.
Despite this, the Trump administration did lay the groundwork for potential regulatory changes by shifting enforcement and rulemaking strategies. During Biden’s administration, there was a major scandal called ‘Operation Chokepoint 2.0’ where people claimed that the government was pressuring banks to cut off crypto companies. This led to outrage and political debate as many crypto firms lost banking access.
However, soon after taking office, Trump’s team quickly addressed crypto issues. They repealed a rule that made it difficult for banks to hold digital assets and reversed a rule that required special permission for crypto activities like custody and stablecoin reserves. Additionally, the FDIC scrapped a Biden-era rule that required banks to report their crypto plans and risks. These changes could make it easier for crypto companies to work with banks in the future.
The SEC has quietly dropped many of its ongoing cases against crypto firms, signaling that similar activities may not face enforcement, at least for now. Several big crypto cases, including those against Coinbase, Ripple, Cumberland DRW LLC, Consensys, and Kraken, have been dropped or settled without finding them guilty. This suggests that the SEC may no longer view token sales, staking, or mining as violating securities laws. However, some cases involving fraud and manipulation are still on hold.
The recent actions by the SEC, such as dropping lawsuits and investigations, indicate a shift in how the agency approaches digital assets. The SEC has also stated that meme coins, proof-of-work mining, and stablecoins backed by U.S. dollars do not fall under its control.
Trump’s rapid actions may seem scattered, but they collectively signify a major shift in U.S. crypto policy. Building in crypto is becoming easier and safer, and this could just be the beginning. The DOJ has announced the shutdown of its crypto crime unit as part of Trump’s efforts to clarify and relax crypto regulations. With Paul Atkins expected to be confirmed as the SEC Chair, there could be further changes in how the SEC handles digital assets.
In summary, the Trump administration has taken steps to ease regulatory pressure on the crypto industry by repealing rules and reversing guidance. While some cases are still pending, the overall trend suggests a shift in how digital assets are regulated in the U.S.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
