Top 3 Crypto Market Changes in Trump's First Week Back

The US President Donald Trump’s second term in office is proving to be iconic for the crypto industry, as seen in the changes that ushered in the first week of the presidency. Many are calling it a crypto renaissance phase as the US President signed major executive orders to fulfill his pro-crypto electoral promises. The impact of it led to the Bitcoin rallying above $109,000 before experiencing a flash crash this week.

Let’s take a look at the major changes that happened in the first week of Trump’s second presidency.

Executive Action Triggers Bitcoin Strategic Reserve Debate

Trump wasted no time addressing the cryptocurrency sector, signing a sweeping executive order on digital assets and financial technology that has both energized and puzzled market observers. While the order establishes a dedicated working group to examine current regulations, some crypto enthusiasts note a subtle but significant shift in language from his campaign promises. At the Bitcoin 2024 conference, Trump had explicitly backed a national Bitcoin strategic reserve , but the executive order's more measured language about exploring a potential stockpile of "digital assets" has raised eyebrows in the crypto community.

Perhaps most significantly, the order took a firm stance against the development of a central bank digital currency (CBDC), a move that aligns with Trump's campaign promises and has been celebrated by cryptocurrency purists who view CBDCs as potential competitors to decentralized digital assets.

SEC Goes from Enforcement to Engagement

The changing of the guard at the Securities and Exchange Commission has marked one of the most dramatic shifts in the crypto regulatory landscape. With Gary Gensler's departure ahead of Trump's inauguration, the appointment of crypto-friendly Paul Atkins as his successor signals a sea change in the agency's approach. While awaiting Congressional confirmation, acting chief Mark Uyeda has already made waves by establishing a new Crypto Task Force led by Commissioner Hester Peirce, long known as "Crypto Mom" for her supportive stance toward the industry.

In what many view as a watershed moment, the SEC's decision to rescind Staff Accounting Bulletin No. 121 has effectively opened the floodgates for traditional financial institutions to serve as crypto custodians. "This represents a fundamental shift in how we approach digital asset custody," noted a senior banking executive who requested anonymity due to the ongoing regulatory transitions.

Explosion of New Crypto Products

The crypto industry has responded to the regulatory thaw with unprecedented enthusiasm. Over 30 new crypto ETF applications have flooded the SEC's desk since Trump took office, ranging from established cryptocurrencies to more exotic offerings. Bloomberg analyst James Seyffart highlighted the increasingly adventurous nature of these applications, noting, "Some of these applications are for riskier products, such as a 2x leveraged MELANIA meme coin ETF."

Perhaps most intriguingly, major players like Nasdaq are pushing the boundaries further by filing for in-kind redemptions for spot bitcoin ETFs. This would allow certain authorized participants to redeem their shares for actual bitcoin, potentially creating a more direct bridge between traditional finance and the cryptocurrency ecosystem.

Crypto Market Restructuring?

The way the crypto market reacted to these developments last week, with trading volumes hitting record levels across major exchanges, shows that the sector is aligning itself to the changes. Analysts are saying it’s not a price appreciation phase but a fundamental restructuring of how cryptos are integrated into the traditional finance system.

As the first week of Donald Trump’s second presidency came to a close, the industry understood it was at a crucial inflection point that probably comes once in a while in history. While the full implementation of these changes is yet to be seen, it is quite clear that the crypto regulatory scene is changing for the better. It has now entered a decisive phase far from the speculative phase of the early Bitcoin days.