Donald Trump ran his presidential campaign on a pro-crypto platform, and plans to turn that vision into policy with his return to the White House. Once a vocal critic of digital assets, the newly inaugurated president is now determined to boost cryptocurrency’s role in the U.S. economy, with an ambitious goal to make the United States the “crypto capital of the planet.”
This marks a sharp departure from his earlier views. During his first term, Trump was “not a fan” of cryptocurrency because it competes against the dollar. He likened it to a “scam,” with value “based on thin air,” and called for its heavy regulation.
But five years, one lost election and millions in crypto lobbying dollars later, he seems to have changed course. Now, with crypto enthusiasts like Robert F. Kennedy Jr., Marc Andreessen and Elon Musk in his corner, Trump has embraced digital assets as a symbol of “freedom, sovereignty and independence from government coercion and control,” even becoming the first major party candidate to accept crypto donations — a gesture of solidarity with the community.
Since Trump left office in 2020, the cryptocurrency industry has been living up to its extremely volatile reputation. Bitcoin peaked in 2021, then plummeted the following year after the FTX exchange collapsed. Recovery began in 2023, fueled by regulatory breakthroughs like the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs, which legitimized crypto as an asset class. Major financial institutions like BlackRock and Fidelity have since expanded their crypto offerings alongside investors who exited during the 2022 downturn — signaling confidence in the market’s potential. Just as Trump clinched his reelection in November 2024, Bitcoin hit a new record high and has remained strong ever since, beginning 2025 with a valuation around $100,000.
Amid all of this, the Biden administration has pursued stricter regulation of cryptocurrency to enhance consumer protection, target fraud and provide market clarity. But the incoming Trump administration seems poised to completely overhaul the federal government’s approach to crypto.
“There has been an effort in the Washington bureaucratic swamp to stifle innovation with more regulation and higher taxes, but President Trump will deliver on his promise to encourage American leadership in crypto and other emerging technologies,” Brian Hughes, a spokesperson for the Trump-Vance transition team said in a statement shared with Built In.
Trump Reportedly Plans to Get Rid of SAB 121 and De-Banking
According to reporting from The Washington Post, Trump plans to issue executive orders on his first day in office that will overturn key crypto policies established during President Joe Biden’s tenure. Among them is the controversial Staff Accounting Bulletin 121 (SAB 121), a policy that requires banks to classify their customers’ digital assets as liabilities on their balance sheets. Crypto advocates have strongly opposed this rule, claiming it hampers the wider adoption of digital currencies.
Sources also told The Post that Trump intends to “address” the practice of “de-banking,” where banks terminate services to individuals and companies involved in digital assets due to perceived financial, legal, regulatory or reputational risks. The practice really took off in 2022 following the implosion of the FTX crypto exchange, making it harder for crypto businesses to access financial services, according to some industry leaders.
Trump’s push for a more lenient approach to crypto regulation comes amid a growing criticism of the Biden administration’s stricter policies and additional reporting requirements, which critics say is stifling innovation and driving businesses overseas. As Trump’s presidency approaches, industry insiders are framing his crypto agenda as a transformative shift that could reinvigorate crypto development and adoption in the United States.
Trump Wants to ‘Stockpile’ Crypto as a Reserve Asset
While the U.S. government does not actively invest in crypto, it has become one of the largest Bitcoin holders. Confiscated by law enforcement from illegal activities such as drug trafficking, ransomware attacks or illegal marketplaces, these assets are routinely auctioned off through public sales conducted by the U.S. Marshals Service. Sometimes, these sales can trigger sizable price drops, like when the German government began selling off hundreds of millions of dollars in Bitcoin in 2024.
Under Trump, however, all federal crypto sales could be off the table. In a July keynote speech at the 2024 Bitcoin Conference, the largest event of its kind, Trump promised that if he were re-elected, he would adhere to the cardinal rule in crypto: “never sell your Bitcoin.” Instead, he proposed converting these seized assets into a “strategic national bitcoin stockpile,” essentially making them a U.S. reserve asset alongside things like gold, oil and foreign currencies.
According to crypto proponents — like Wyoming Senator Cynthia Lummis, who proposed a bill with this exact plan lined out — creating a stockpile of digital assets has the potential to secure the U.S. Dollar as a global reserve currency. Her so-called BITCOIN Act outlines a five-year plan to accumulate one million bitcoins — worth approximately $70 billion — with the end goal of owning approximately five percent of the total, finite supply.
While the long-game is financial stability, Bitcoin can be used in the meantime to help counterbalance rising inflation costs and offset national debt, which is currently in the trillions. This plan would also tie into Trump’s “America First” foreign policy as a way to stay ahead of countries like China and Russia, as well as potentially ignite global competition — a move that would spike Bitcoin’s value.
Trump Is Replacing SEC Chairman Gary Gensler and Aims to Deregulate the Crypto Space
Trump made ousting Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, a day-one priority.
During his tenure at the helm of the independent commission, Gensler has brought more than 100 actions against crypto firms, earning enemy No. 1 status among the crypto community for his arguably heavy handed rulings and regulatory overreach. Others celebrate Gensler’s reforms, which provided protections for investors and brought accountability to the “Wild West” of digital finance — an agenda that directly contradicts Trump’s hellbent plans for deregulation.
Gensler confirmed he would resign on January 20, one year short of his 2026 term, as is customary when a new administration takes office. This frees up a seat for a nominee of Trump’s choice, who would likely serve as chair, subject to approval by a Republican-ruled Senate.
In the meantime, the SEC’s acting chairman, Mark T. Uyeda, has already launched a new crypto taskforce to “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously,” according to a press release issued by the agency on January 21.
Trump Promised a ‘Bitcoin and Crypto Presidential Advisory Council’
Trump also promised to create a 24-person “Bitcoin and crypto presidential advisory council” made up of crypto leaders, including CEOs and founders working in the industry. This board would help guide the incoming administration on crypto-related policy, collaborate with Congress and coordinate with regulatory agencies, like the SEC and the Treasury department.
“We will have regulations,” he said during the 2024 Bitcoin Conference when he first introduced the advisory council, “but from now on the rules will be written by people who love your industry, not hate your industry.”
Having already named former PayPal executive David Sacks as “White House AI and Crypto Czar” (a newly created role), Trump’s team is currently vetting candidates for the advisory council.
On the short list is:
- Heath Tarbert: Former Commodity Futures Trading Commission chair and chief legal officer at Circle, who is currently advising Trump.
- Brian Quintenz: Former commissioner of the Commodity Futures Trading Commission and head of policy for a16z crypto, a crypto-focused venture capital firm, who is also currently a part of Trump’s advisory team.
- David Bailey: CEO of Bitcoin Magazine and former cryptocurrency aide to Trump, who arranged the Trump’s headlining spot at the Bitcoin Conference.
- Kris Marszalek: CEO of Crypto.com, who met with Trump at Mar-a-Lago to discuss crypto industry appointments and regulations.
- Jeremy Allaire: CEO of Circle, who donated $1 million in USDC, a crypto stablecoin, to Trump's inaugural committee and has expressed interest in joining the council.
- Brian Armstrong: CEO of Coinbase, the largest U.S. crypto exchange, who has met with Trump regarding crypto issues.
- Nathan McCauley: CEO of Anchorage Digital, who has urged Trump’s team to adopt a more crypto-friendly stance.
Other major players, including those behind crypto giants Ripple, Kraken and research investment firm Paradigm, are also contending for a chance to influence digital asset policy.
Trump Wants to Cut Capital Gains on Crypto ‘Made in America’
As an offensive strategy to collect as much of the limited supply as possible, Trump wants to bring Bitcoin stateside, saying that all future Bitcoin will be minted in the U.S.
“We will ensure that the future of crypto and the future of Bitcoin will be made in America, otherwise other countries are going to have it,” he said during a campaign speech in June.
One strategy that has been proposed by Trump’s transition team involves eliminating capital gains taxes on cryptocurrencies that are issued by U.S.-based companies. By allowing investors to retain full profits from buying, selling or trading American-born cryptocurrencies, it could lower the overall cost of participation in the market and increase investment activity — both domestic and abroad. The idea is to solidify the nation’s position in the global crypto market and promote mainstream adoption of digital assets.
But based on the amount of power required for the energy-intensive process to mine Bitcoin, experts say this promise may be the hardest one for Trump to keep, as it’s impossible.
According to the U.S. Energy Information Administration, less than half of all crypto mining happens in the United States. And the mining facilities that are domestic cannot run at maximum capacity, largely due to constraints of the power supply. Energy companies across the country simply can’t keep up.
Aside from infrastructure troubles, there are only so many Bitcoins left. At this time, about 94 percent of the total supply — 21 million coins — has already been mined and minted. Still, the hard cap on Bitcoin production isn’t expected for another hundred years, with the final Bitcoin expected to enter circulation in the year 2140. It’s highly unlikely that the United States, which currently holds only slightly more Bitcoin than China, will acquire all the remaining Bitcoin.
