President Donald Trump has already made lots of changes. He’s also made it clear that he wants the US to be the ‘crypto capital of the world.’ This shift is surprising for many, especially as Trump called Bitcoin ‘a scam’ in the past. Now, though, we know he owns around $1 million in cryptocurrency, so his plans make more sense. This is one area at least that Trump has changed his views on since his first presidency. But, how does he intend to make the US the crypto capital? Let’s find out.
The Presidential Working Group on Digital Asset Markets
On January 23, 2025, the White House published an Executive Order, the overall purpose of which is to establish the United States as a leader in digital financial technology. The order mentions the creation of a Presidential Working Group on Digital Asset Markets, and it aims to strengthen US leadership in digital finance.
The working group is chaired by the White House AI & Crypto Czar. It also includes:
- The Chairman of the Securities and Exchange Commission.
- The Secretary of the Treasury.
- Other heads of relevant agencies and departments.
There will be discussions with experts on digital assets and markets. This is so that the team has the necessary expertise beyond their existing knowledge as the federal government.
The main areas of focus for the working group will be:
- Digital asset regulations.
- Stable coins.
- A potential national digital asset stockpile.
Changing regulations to allow more innovation
During Joe Biden’s presidency, there was an executive order on cryptocurrencies. This order called the government to look into the risks of cryptocurrencies. At the time, there was growing concern about how digital currencies could be regulated. Biden wanted to protect consumers and investors. The idea was to make sure that digital assets were financially stable. He was also keen to prevent illicit activities and to make sure innovation happened responsibly. He believed this was possible, all while keeping the US financially competitive.
Trump believes the current executive order stifled crypto growth in the US. As such, he has put a stop to the aggressive enforcement of restrictive policies and has repealed Staff Accounting Bulletin No. 121 (SAB 121). He hopes this will allow for more innovation.
The private sector and US crypto leadership
Trump needs the support of the private sector if he wants the US to become the world’s leader for digital finance. He needs blockchain startups and fintech firms on board. The hope is that these companies will develop more decentralized (DeFi) platforms, smart contracts and tokenized assets. In turn, this will create jobs and attract venture capital investment, and then the digital assets economy of the US will grow.
Silicon Valley will play a part. From startups to tech giants working on blockchain solutions, there’ll be heavy involvement. It’s very likely now that Wall Street, too, will embrace cryptocurrencies. Here, we can expect digital assets to be integrated into investment portfolios and crypto-related financial services to be offered. Wall Street may even have potential blockchain initiatives of their own.
If this comes off and major financial institutions are on board, the crypto industry will have more legitimacy. Then, we can expect cryptocurrencies to become more mainstream.
A pro-crypto government will also help the private sector develop the industry. If there are lower barriers to entry, businesses will have more opportunities for innovation. They’ll also attract international investment.
The future of crypto payments and financial technologies in the US
With President Trump’s intention for the US to be the global cryptocurrency leader, cryptocurrencies will likely be
integrated into mainstream payment systems.
Several areas have already started this. One sector that seems way ahead of others is iGaming. Many online casinos around the world now accept cryptocurrencies and the top crypto casinos only accept digital assets. Businesses and consumers prefer decentralized platforms and blockchain. This is due to its security, transparency and fast transactions.
So, what can we expect in the future? Many major financial institutions and payment processors like Mastercard, PayPal and Visa are already expanding their cryptocurrency services to allow digital asset transactions. Banks, too, are exploring blockchain-based systems. This is due to them being faster and having cheaper infrastructure. With all of these developments, conventional banking might have to take a back seat. There’s simply no comparison with the efficiency and accessibility of crypto payments.
Lending, borrowing and asset management are all seeing improvements, thanks to DeFi. Decentralized platforms have no intermediary, which means users have greater financial autonomy. Depending on how President Trump’s working party moves forward, we’ll have to wait to see how things evolve. There will still need to be a balance between innovation and consumer protection.
Challenges to US crypto dominance
Although the United States plans on becoming the global blockchain and cryptocurrency leader, there are challenges. Regulatory uncertainty is a big hurdle. If policies are inconsistent, especially across the different federal agencies and state governments, it could be confusing.
Unless the guidelines are clear, crypto firms could struggle to operate widely in the United States. This might then drive innovation offshore to other, more crypto-friendly jurisdictions. Current top contenders are Switzerland, Singapore, El Salvador and Dubai.
One of the biggest challenges will be the fear of illicit activities. This was what Biden was seeking to address with his policies. There will be concerns regarding money laundering, fraud and crypto use in cybercrime. These issues need strict regulations like Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. However, these are also seen to be stifling. Many complain they limit the privacy potential of cryptocurrencies.
Digital assets are also volatile. This is a significant challenge. Unlike traditional markets, crypto is highly speculative. This leads to huge price swings. Investors and users are often uncertain about their fluctuating value. Mainstream acceptance will be an issue because of this.
Finally, blockchain networks, especially proof-of-work (PoW) systems like Bitcoin, have a huge environmental impact. This is less likely to worry Trump, though, given that he is taking a step back from global climate action.
Conclusion
To summarize, President Trump’s aim for the US to become the global crypto capital is ambitious. He clearly seeks to develop innovation and attract investment. His actions to establish the working group and repeal restrictive policies will help him realize his idea. However, there are still significant challenges. There will need to be a balance between protecting consumers and encouraging growth. Consistent policies will be crucial, that’s for sure.
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