Trump Administration's Proactive Crypto Governance Boosts US Market by 36%

Crypto firms in the US are navigating a new regulatory landscape under President Donald Trump's administration, which has shifted from an enforcement-led approach to a more proactive governance strategy. This change is evident in the recent executive orders and legislative proposals aimed at providing clarity and structure to the crypto industry. The January 23 executive order, "Strengthening American Leadership in Digital Financial Technology," rescinded a 2022 directive issued under President Joe Biden, signaling a new era of proactive governance. Additionally, the creation of a Strategic Bitcoin Reserve, funded with seized Bitcoin from criminal cases, marks a significant step towards institutional acceptance of cryptocurrencies.

The Securities and Exchange Commission (SEC) has reorganized its crypto oversight efforts into the "Cyber and Emerging Technology Unit," focusing on long-term rulemaking and developing a comprehensive regulatory framework. This shift is part of a broader effort to allow businesses the freedom to experiment and build innovative solutions. The Department of Justice's National Cryptocurrency Enforcement Team (NCET) was disbanded in April, further emphasizing the administration's move away from enforcement-led regulation.

The GENIUS Act, proposed in February 2025, is a significant attempt to bring stablecoins under a clear, federally backed regulatory framework. Although the bill did not pass in May 2025, it sparked bipartisan momentum and paved the way for future consumer-focused crypto legislation. The impact of these policy changes has been palpable, with a burst of deal activity and renewed investor enthusiasm in the crypto market. For instance, the $3.6 billion merger between bitcoin firm Twenty One Capital and a SPAC led by Brandon Lutnick highlights the industry's confidence and readiness to scale.

This shift in regulatory tone has triggered tangible changes on the ground. Uminers CEO Batyr Hydyrov sees the SEC's updated stance on proof-of-work mining as a catalyst for accelerating infrastructure investments. The establishment of a national strategic Bitcoin reserve signals growing institutional acceptance, potentially encouraging further investment in mining infrastructure. However, Hydyrov maintains a disciplined approach, scaling targeted investments while preparing for potential shifts in global policy.

As the regulatory fog lifts, legal frameworks governing market participation are also being redefined. Frank Hepworth, founder of Yieldschool and former regulatory attorney, views the policy pivot as a structural green light for decentralized models. He argues that the administration's approach is a net positive for the industry, encouraging more businesses to go on-chain. Hepworth's critique targets outdated access rules, advocating for a crypto-led and crypto-native design to ensure equitable access.

Transparency is emerging as a core trust-building mechanism in the industry. GT Protocol, led by Peter Ionov, navigates the edge of regulatory uncertainty by emphasizing transparency. Investor responses vary, with more agile entities seeing opportunities while traditional financial institutions remain cautious. The industry is shifting towards open-sourcing code, publishing audit reports, and collaborating with licensed providers to build trust.

With transparency strengthening investor confidence and access expanding through legal innovation, the stage is set for scaling bold ideas. Construct Koin, using AI and blockchain to transform real estate finance, sees reduced enforcement as a catalyst for experimentation. However, co-founder Chris Baldrey-Chourio warns that America's lead in crypto innovation won't last without action, citing global competitors like the EU and Singapore. He emphasizes the need for collaboration between regulators and builders to protect consumers while allowing breakthroughs to happen.

Andrea Perlak, CPA and founder of Crypto Accounting Group, contends that the crypto industry has always been focused on high ethical standards. She rebuts the myth that decentralization means chaos, arguing that transparency, multiple layers of governance, and incentives are key to the industry's success. Perlak points out that the concept of deregulation is a misnomer, as the industry is moving from "regulation by enforcement" to proper legislation. With real frameworks on the horizon, the industry is ready to meet oversight on solid ground.

In summary, the crypto industry in the US is moving from confusion to shared standards and from closed systems to open, ethical innovation. If the industry seizes this window to lead with transparency, ethics, and inclusivity, it could redraw the blueprint of modern finance. The voices of industry leaders reflect a growing sector ready to navigate the new regulatory landscape with confidence and innovation.