Trump’s Inauguration Speech Sparks Crypto Disappointment
On January 20, 2025, Donald Trump, the 47th President of the United States, delivered his inaugural address, but to the dismay of many in the cryptocurrency community, he did not mention crypto at all. This lapse was particularly notable given the high expectations surrounding his commitment to digital assets. Adding to the disappointment, a report outlining the immediate priorities for the Republican Congressional agenda notably omitted any reference to cryptocurrency or Bitcoin.
The priorities identified in the report focused largely on traditional issues such as energy independence and immigration, leaving many in the crypto space to ponder the implications of this oversight. The missing references sparked speculation about the potential for future announcements related to cryptocurrencies and whether they would be sidelined in the current political landscape.
Crypto Promises and Price Volatility
In the lead-up to his inauguration, Trump had made promises to implement executive orders related to cryptocurrency on his first day in office, including ambitious plans to establish a national Bitcoin strategic reserve. Sources close to the administration suggested that Trump’s team would prioritize a comprehensive national crypto policy, with intentions to form a crypto advisory council—initiatives that had many in the industry eagerly anticipating a decisive shift in regulations.
However, the lack of cryptocurrency mentions during the inauguration had immediate ramifications for Bitcoin’s price, which plummeted to $100,000. Just before the ceremony, Bitcoin had experienced a surge above $109,000, but the subsequent drop has led to a slight recovery, now trading at approximately $102,000.
Industry Leaders Remain Optimistic
Despite the initial disappointment, many industry leaders continue to express optimism regarding Trump’s future actions on cryptocurrency. Circle CEO Jeremy Allaire, speaking at the Reuters Global Markets Forum during the World Economic Forum in Davos, stated that he anticipates the President will soon issue a crypto executive order. Allaire remarked, “I expect those orders imminently,” highlighting the persistent hope that regulatory clarity is just around the corner.
Allaire emphasized his concern over the SEC’s Staff Accounting Bulletin (SAB) 121, a contentious framework that has been criticized for its restrictive nature. The framework has been seen as a barrier for banks and corporations wishing to hold crypto assets on their balance sheets. In May 2024, the US Senate voted to repeal this accounting bulletin, but the resolution was vetoed by former President Joe Biden. Allaire noted, “That’s something I think to watch closely in terms of EOs. I’m strongly in favor of repealing it, and I would hope that President Trump would take that action.”
Positive Perspectives from Crypto Exchanges
In the wake of Trump’s inauguration, Ben Zhou, co-founder and CEO of Bybit—the world’s second-largest cryptocurrency exchange by trading volume—shared his insights on the potential for a more favorable regulatory landscape. Zhou told Cryptonews that he views the situation as a “beacon of hope.” He anticipates that the next few months will usher in clearer regulatory guidelines and increased industry support, especially with the anticipated formation of the crypto advisory council.
Zhou remains bullish on the possibility of cryptocurrencies becoming more integrated into everyday life, emphasizing that the market is “primed for a positive response.” His confidence reflects a broader belief in the resilient nature of the crypto market, despite current uncertainties.
Why It Matters
The decisions made by the Trump administration regarding cryptocurrency will likely have significant implications for the entire industry. As regulatory frameworks develop, the cryptocurrency market could see considerable growth or face new challenges, depending on the path chosen by lawmakers. Investors, developers, and enthusiasts are all watching closely to gauge the impact of these early decisions in Trump’s new term.
Expert Opinions on the Future of Crypto Under Trump
Insights from various market experts suggest that while initial expectations may not have been met during Trump’s inaugural speech, the potential for substantial developments remains intact. The prospect of a dedicated crypto advisory council could provide the much-needed guidance and support for digital assets to navigate regulatory hurdles and paves the way for increased acceptance and integration into the financial system.
The sentiment shared by leaders like Allaire and Zhou indicates a cautious but optimistic outlook for the future of cryptocurrency in the United States. As the crypto community adjusts to the current political landscape, there is a unified hope that clearer regulations will emerge, fostering an innovative environment for digital currencies and ultimately benefiting the broader economy.