Trump's Crypto Order: Reshaping the Four-Year Cycle

President Trump's Executive Order Could Reshape Crypto's Four-Year Cycle

Bitwise CIO Matt Hougan believes that President Trump's executive order could disrupt the traditional four-year cycle in the crypto market. The cycle, based on Bitcoin's halving events, has been a widely accepted pattern among crypto investors. However, Hougan suggests that the implications of Trump's executive order could alter this cycle.

Trump's executive order, titled "Strengthening American Leadership in Digital Financial Technology," directs the U.S. government to promote stablecoins, end regulatory persecution of digital assets, and evaluate the possibility of a national crypto reserve. These initiatives could have significant long-term effects on the crypto market, potentially reshaping the four-year cycle.

Hougan notes that the downstream positive effects of the executive order, along with other changes in Washington, will be felt over the course of years, not months. He questions whether investors will go into hibernation in 2026, even if they know that the crypto market has entered a new, crypto-enabled world. Hougan suggests that any pullback in the market could be shorter and shallower than in years past, as the crypto space has matured and there is a greater variety of buyers and more value-oriented investors than ever before.

Meanwhile, Coinbase has strengthened its ties to Washington by adding four high-profile figures to its advisory board, including former US Senator Kyrsten Sinema and Chris LaCivita, co-campaign manager for President Trump's re-election bid. This move suggests that Coinbase is positioning itself to have direct influence on policy discussions by aligning with individuals who have deep ties to both the Trump camp and traditional financial institutions.

Favorable regulatory and legal tailwinds have recently boosted Coinbase. Trump's nominations for key roles in U.S. regulators favor the crypto industry in the country. In the U.S. Securities and Exchange Commission (SEC), the U.S. president nominated pro-crypto Paul Atkins to replace former chair Gary Gensler. Until Atkins can take office in June 2026, pro-crypto Commissioner Hester Peirce will continue to provide regulatory clarity for companies and stop regulation by enforcement efforts.

In addition to these changes, the executive order created the first role focused on crypto and artificial intelligence regulation. David Sackstook the spot, becoming what is being called the "White House AI & Crypto C