Author: Huohuo, Bai Hua Blockchain
From the end of last year to the beginning of this year, the newly elected US President Trump made a lot of promises about Bit and the crypto industry during the election and before taking office, directly driving the crypto market to wave after wave of frenzy. Although Trump did not "cross the river and dismantle the bridge" after taking office, as some commentators had suggested, but rather constructively implemented the various favorable crypto policies promised earlier. However, the subsequent roller coaster of the TRUMP Memecoin of his family, coupled with the complex macro environment such as increased tariffs, the market sentiment quickly turned from frenzy to panic, causing a lot of controversy.
The current crypto market performance is lower than expected, and it seems that the long-term impact of Trump's series of Bit/crypto policies has not been fully priced in. Have these really been underestimated?
01. Implementation of Trump's Top 10 Crypto Policy Commitments
During the 2024 presidential election campaign, Trump proposed 10 major crypto currency policy commitments, clearly stating that he would promote the development of the US crypto industry and formulate a friendly regulatory framework for it.
However, in his inauguration speech on January 20, Trump did not mention crypto-related issues. But Bitcoin Magazine CEO David Bailey later wrote that crypto-related executive orders had been included in the first 200 executive orders after Trump took office, indicating that crypto policies would still be promoted.
As time has passed, Trump has been in office for almost a month, so how have these 10 policies been implemented?
1) Make the US the global capital of cryptocurrencies
On January 23, 2025, Trump signed an executive order aimed at promoting the US's leadership position in crypto assets and financial technology, emphasizing support for the development of blockchain and crypto assets. David Sacks, the AI and cryptocurrency commissioner appointed by Trump, stated clearly: "We want to make the US the world capital of AI and bring significant economic benefits to the country."
2) Stop the crackdown on the crypto industry within an hour of taking office
On January 23, Trump signed an executive order stating that a crypto currency working group would be established to propose a new regulatory framework for crypto assets and explore the creation of a Bit national reserve.
3) Prevent the US government from further developing a central bank digital currency (CBDC)
The January 23 executive order explicitly prohibits the establishment, issuance or promotion of CBDC within the US, and requires the immediate termination of any related plans.
4) Establish a strategic Bit reserve
The government is currently evaluating the possibility of establishing a crypto asset reserve, but no final decision has been made. However, on January 23, Senator Cynthia Lummis, who proposed the Bit Bill, was appointed chair of the Senate Banking Crypto Asset Subcommittee, which should help push the bill forward again.
5) Dismiss SEC Chairman Gary Gensler
Gary Gensler left office on January 20, and on January 21 Trump announced that SEC Republican Commissioner Mark T. Uyeda would serve as acting chairman until Paul Atkins (Trump's nominee to replace Gensler) is confirmed by the Senate. On the same day, Mark announced the establishment of a crypto currency working group to develop a clear and transparent US crypto asset regulatory framework.
Additionally, according to news on February 4, the Trump administration is reducing the members of the SEC's crypto enforcement team, which had previously been dedicated to crypto enforcement actions and consisted of more than 50 lawyers and staff, although the exact number of layoffs is not yet known.
6) Prevent the US from selling its Bit holdings
There has been no official statement yet on the US government's holding of Bit, so we'll have to wait and see if there is any new information on this later.
7) Suggest using cryptocurrencies to solve the US debt problem
There is currently no public information showing that the government has taken specific measures to use crypto assets to address the national debt.
8) Propose a comprehensive crypto policy
A comprehensive crypto policy has not yet been implemented, but the new crypto working group established by the executive order mentioned earlier has been instructed to submit regulatory and legislative recommendations on crypto assets within 180 days, in order to formulate a comprehensive crypto currency policy.
9) Establish a Crypto Currency Advisory Council
A working group composed of senior officials from multiple departments has been established to propose a regulatory framework for crypto assets.
10) Reduce the sentence of Silk Road founder Ross Ulbricht
On January 23, Trump signed a pardon order, releasing Ross Ulbricht who had served 11 years in prison.
So far, most of the 10 crypto-friendly policies promised by Trump have been implemented, especially in the development of the regulatory framework and policy support, but some policies still need time to be fully realized.
02. Other Crypto Dynamics of Trump
In addition to the crypto-related parts included in the first 200 executive orders after taking office, and the crypto policies promised earlier, Trump has also made many other explorations of crypto during and before his term.
1) Support the launch of the DeFi platform World Liberty Financial
World Liberty Financial (WLFI) is a DeFi project supported by the Trump family, launched in September 2024, providing blockchain financial services such as lending, trading and yield farming. Although Trump and his children actively promoted it, WLFI has no direct legal relationship with the Trump family, and only has the authorized use of their brand for promotion. This ambiguous relationship has raised market doubts, and the WLFI Token only has governance functions and no economic rights. The initial Token sale was flat.
However, with Trump's inauguration and the spread of the TRUMP Memecoin effect, the market heat of WLFI has risen. After January 20, 20% (2 billion) of its Tokens were sold, raising $1 billion. Driven by market demand, WLFI has also sold an additional 5% (500 million) Tokens at a price of $0.05, higher than the initial price. As of February 12, 81% have been sold.
WLFI not only relies on the Trump brand, but its team also includes veteran crypto industry professionals, and has established partnerships with institutions like Aave and Ethena Labs. Its multi-signature address currently holds over $74.5 million in crypto assets, mainly invested in ETH, WBTC, AAVE and others.
2) Release the TRUMP Memecoin
On January 17, just 3 days before the presidential inauguration, Trump launched the "TRUMP Memecoin" on Solana, whose market cap soared to $14.5 billion in just two days, and also drove Bit to break through $109,000. However, the frenzy quickly subsided, and by January 30, the market cap had dropped by two-thirds, with transaction fees reaching $86 million to $100 million. Trump's wife Melania later launched the "MELANIA Memecoin", which also experienced a sharp decline. TRUMP fell 64.7% in a week, and MELANIA fell over 80%.
Price trend of TRUMP Memecoin since its launch, source: CoinmarketCap
TRUMP was led by CIC Digital, a company under Trump, mainly profiting from transaction fees, but the specific earnings and ownership are still not transparent. On-chain data analysis shows that at least 50 major investors in the early holders of TRUMP each made over $10 million in profits, while about 200,000 small investors suffered losses.
It is worth noting that the launch of TRUMP in the short term caused a "blood-sucking effect" on the market, draining liquidity, leading to a general decline in crypto currencies outside the Solana ecosystem. Subsequently, the WLFI project supported by Trump began to buy ETH assets in batches.
3) Establish a Crypto Currency Working Group
On January 23, 2025, former President Trump signed an executive order establishing a new task force on Bit, DeFi, and Tokens. The task force, led by Trump-appointed AI and Bit expert David Sacks, includes senior government officials such as the Treasury Secretary, Attorney General, Commerce Secretary, SEC Chair, and CFTC Chair.
According to the executive order, the task force will submit a report within 180 days, proposing regulatory recommendations on stablecoin management, market structure, and consumer protection, as well as assessing the feasibility of establishing a national Bit asset reserve. Sacks stated: "We aim to make the US the global capital of AI and bring substantial economic benefits to the nation."
This initiative focuses on the integration of AI and Bit assets, which was not previously mentioned in Trump's election promises. Currently, Trump aims to position the US as a global leader in these critical technologies, attempting to further strengthen the US's advantage in the global technology competition through the synergistic development of AI and Bit assets.
03. How do Bit KOLs view it?
KOLs have diverse and complex views on Trump's Bit policy. Based on online discussions and analyses, here are some of the main perspectives:
1) Optimists
Some KOLs believe that Trump's policy will have a positive impact on the Bit industry. They point out that Trump's executive order may mark a shift from regulatory suppression to supportive policies, such as halting the SEC's crackdown on Bit, making the government more receptive to Bit technology, and involving entrepreneurs in policymaking, which are seen as potentially bringing more innovation opportunities and regulatory clarity to the industry.
For example, a16z co-founder Marc Andreessen expressed that Trump's policy is beneficial for the Bit industry. He has expressed confidence in the regulatory relaxation and policy support that the Trump administration may bring.
Bit analyst @skydegencall stated that not only did Trump not stop supporting Bit after the election, but he also included Ethereum in his economic plan, believing this will change the game rules and Bit assets will become part of Trump's legacy.
Solana community leader @sol_jingou believes that Trump's executive order will trigger a series of chain reactions, including halting the SEC's crackdown on Bit, making government agencies accept Bit technology, allowing entrepreneurs to participate in policymaking, and the government itself becoming a participant in the Bit market, stating that the winners will not be short-term speculators.
Bit technology expert @0xCheshire also mentioned that Trump's executive order will lead to the SEC relaxing its suppression of Bit and the government accepting Bit technology, and pointed out that this policy shift is highly beneficial to the industry, describing it as a 180-degree turnaround from high-pressure regulation to comprehensive support.
2) Skeptics and Critics
There are also KOLs who are skeptical of these policies. They are concerned that Trump's policies may be more driven by political or personal interests rather than a genuine understanding and support for Bit technology. Particularly in the discussions around Trump's own issued Bit like TRUMP, there are views questioning whether this may lead to market manipulation or conflicts of interest.
For example, Coinbase CEO Brian Armstrong welcomed the potential regulatory relaxation brought by Trump's policy, but expressed concerns about whether the policy can truly serve the industry, avoid conflicts of interest, and provide long-term stability. He has publicly emphasized that any policy must truly understand and support the basic principles of Bit, such as decentralization and user privacy.
Associate Professor of Finance @LarisaYarovaya, in an article published in The Guardian, took a critical stance on Trump's Bit policy, arguing that it may leave investors unprotected and vulnerable to financial manipulation, misconduct, and bubble bursts.
Bloomberg investigative reporter @ZekeFaux, in an NPR interview, expressed concerns about Trump and his family entering the Bit space, particularly the potential conflict of interest issues surrounding Trump's launch of his own Bit.
US Senator @ElizabethWarren expressed concerns about Trump's Bit policy, emphasizing that it may be for personal interests rather than public interests.
Overall, KOLs' views reflect the dual expectations and concerns about Trump's Bit policy. While many acknowledge the potential opportunities brought by policy changes, there are also numerous voices cautioning the need to closely observe the actual implementation and impact of the policies.
04. Summary
On the one hand, many of the ten Bit policy commitments made by Trump have already begun to be implemented, such as establishing a Bit task force, halting the crackdown on the Bit industry, and exploring the establishment of a BTC reserve. However, some promises have not yet been fully realized, such as using Bit to solve the national debt problem and launching a comprehensive Bit policy.
On the other hand, Trump's active involvement in the Bit field is not limited to policy support, but also includes actual business operations. He has established a Bit task force, issued the TRUMP Token, and supported decentralized finance (DeFi) platforms like World Liberty Financial. This indicates that Trump's Bit engagement goes beyond just rhetoric, as he is using specific projects and policies to drive market innovation and establish his influence in the Bit space.
Furthermore, these initiatives also reflect Trump's desire to leverage the potential of Bit and related technologies to enhance the US's global leadership in the Bit market and financial technology. Whether through his own Bit Token or by supporting decentralized finance platforms, he is bringing more policy support and market opportunities to the Bit industry. However, these actions have also raised market questions about potential conflicts of interest and transparency, particularly regarding the role of Trump and his family in Bit projects, which have attracted some criticism.
