How the New U.S. Administration Could Reshape the Crypto Market

This week marks the beginning of a new presidential administration in the United States, and the implications for the crypto market are massive. In my seven years of investing in crypto, I’ve never seen this much buzz around upcoming policy changes.

In this article, we’ll break down what we know so far about the Trump administration’s crypto policies and what they could mean for the market. Let’s dive in.

Key Crypto Policy Changes Under the New Administration

Over the past year, many different crypto-related policies have been discussed in Washington—some only briefly. However, a handful of them have gained significant traction leading into the first week of the new administration. Here are the top five:

1. SEC Leadership Change – The current SEC leadership has been notoriously anti-crypto, issuing Wells Notices and filing lawsuits against some of the most legitimate companies in the industry. That is about to change.
2. Strategic Bitcoin Reserve – The U.S. government is considering purchasing and holding Bitcoin as part of a strategic reserve.
3. End of Operation Choke Point 2.0 – The government’s efforts to debank crypto founders and companies are coming to an end, with an ongoing Senate investigation into what happened.
4. Crypto Accounting Rule Changes for Banks – Currently, banks are required to list digital assets as liabilities if they hold any. This could soon be reversed.
5. Overall Pro-Crypto Stance – The administration is expected to issue an executive order and establish a crypto policy council to guide regulation.

Now, let’s break down each of these policies and discuss their potential impact on the crypto market.

1. SEC Leadership Change: A Big Win for Crypto?

Trump has nominated Paul Atkins, a well-known cryptocurrency advocate, as the new SEC chair. Atkins is the CEO of Pomac Partners and a former SEC commissioner. The crypto industry sees him as an ally, and he has even spoken at crypto conferences in the past.

The current SEC chair, Gary Gensler, is stepping down on January 20th. Right now, the SEC commission is split 3-2 in favor of Democrats. Once Gensler is replaced with Atkins, the balance will shift 3-2 in favor of Republicans, which could mean a major regulatory shift in favor of crypto.

The crypto market isn’t expecting the SEC to suddenly start promoting crypto. Instead, the biggest hope is that the SEC simply stops attacking the industry. Take Uniswap, for example—the largest decentralized exchange in crypto. Despite being one of the most reputable and innovative startups in the industry, it received a Wells Notice from the SEC. This kind of regulatory hostility has stifled innovation and driven crypto startups away from the U.S.

With the SEC leadership change, crypto startups will have more room to focus on building rather than fighting legal battles. The biggest beneficiaries?

• Companies and projects that have been previously sued by the SEC, such as XRP (Ripple).
• The DeFi sector, which has long struggled with regulatory clarity regarding governance tokens.

If the SEC stops treating governance tokens as potential securities, the DeFi space could see significant growth.

2. The U.S. Strategic Bitcoin Reserve: A Game-Changer?

One of the most exciting possibilities under the new administration is the creation of a U.S. strategic Bitcoin reserve.

The idea is simple: Just as the U.S. holds gold and oil reserves, it would also purchase and hold Bitcoin as a strategic asset. Bitcoin is now a multi-trillion-dollar commodity, and some believe that if it continues to gain adoption, it could start competing with gold as a store of value.

This idea has been gaining serious traction:

• The New York Times has reported “real political momentum” behind Trump to establish a Bitcoin reserve.
• Senator Cynthia Lummis, a well-known Bitcoin supporter, has been pushing hard for this policy.
• Betting markets currently show a 57% chance that the U.S. will establish a national Bitcoin reserve in 2025, with a 42% chance it happens within the first 100 days of the new administration.

If this happens, it could trigger a global FOMO (fear of missing out) effect. Billionaire investor Mike Novogratz predicts that if the U.S. buys Bitcoin, other nations and institutions will follow, potentially pushing Bitcoin’s price to $500,000 per coin.

While Bitcoin would benefit the most from this, the effects would likely trickle down to the rest of the crypto market, as we’ve seen with Bitcoin ETFs.

3. The End of Operation Choke Point 2.0

Operation Choke Point 2.0 was a coordinated effort by U.S. regulators (FDIC, OCC, DOJ, and others) to debank crypto companies and founders. This made it nearly impossible for some legitimate businesses to access banking services.

For example, Sam Kazemian, the founder of Frax (one of the largest DeFi projects), had his bank account shut down simply because his wealth came from crypto. This kind of regulatory hostility has made it incredibly difficult for crypto startups to operate in the U.S.

However, things are changing:

• Senator Lummis is leading an investigation into Operation Choke Point 2.0, demanding that all records be preserved.
• There’s growing political pressure to ensure crypto companies are treated fairly by the banking system.

This policy shift will greatly benefit U.S.-based crypto companies, making it easier for them to operate without the fear of being shut out by banks.

4. Crypto Accounting Rule Changes for Banks

Currently, an SEC guideline (Staff Accounting Bulletin 121) forces banks to list digital assets as liabilities, even when they are simply holding them on behalf of customers. This makes it financially unattractive for banks to custody crypto assets, limiting options for investors.

The new administration is expected to reverse this rule as part of an executive order on Day 1. This would encourage more banks and financial institutions to offer crypto custody services, expanding access to digital assets.

The sectors that stand to benefit the most include:

• DeFi and real-world asset tokenization projects that rely on financial institutions.
• Stablecoins, as banks may become more willing to hold them.

5. The Creation of a Crypto Policy Council

Beyond the specific policy changes, there’s an overall expectation that the U.S. government’s approach to crypto will shift fundamentally under the new administration.

Reports suggest that Trump may issue an executive order to:

• Instruct regulatory agencies to work with the crypto industry.
• Establish a crypto policy council to represent industry interests.

This would be a dramatic contrast from the last few years, where crypto founders faced lawsuits, banking issues, and regulatory uncertainty. Instead of treating crypto as an industry to be shut down, the government could start collaborating with industry leaders to create clear, fair regulations.

Some rumors even suggest that the U.S. may prioritize U.S.-based altcoins like Solana (SOL) and XRP. While this idea is speculative, it wouldn’t be surprising if U.S.-based projects receive more favorable treatment in the future.

Final Thoughts

These policy changes could mark the beginning of a new era for crypto in the U.S.. Instead of fighting lawsuits and banking restrictions, crypto startups and investors may finally get the clarity and support they need to thrive.

The biggest winners from these shifts include:
✅ Bitcoin – If a U.S. strategic Bitcoin reserve is established, we could see massive price growth.
✅ DeFi Projects – Greater regulatory clarity could allow projects to innovate freely.
✅ U.S.-Based Crypto Companies – Easier access to banking and friendlier regulations will foster growth and investment.