Since Monday January 20, the United States has a new president, while the world of cryptocurrencies has a new crypto-billionaire.
The kicker? It’s the same person: Donald Trump.
As the United States prepares for President-elect Trump’s second inauguration on Monday, a new twist has made headlines: the launch of two Trump-branded cryptocurrencies, $TRUMP and $MELANIA. Although both tokens appear to lack intrinsic utility beyond their coin nature, they have attracted considerable interest as digital representations of the Trump brand. While promoting the play, Trump told his supporters to “Have fun! ” and the website selling the tokens said they were designed to be expressions of support and not an investment opportunity.
Their collective market capitalization of over $10 billion has made the 47th US president and first lady crypto-billionaires. Both coins trade on the Solana blockchain.
The Trump family’s new coins have already drawn criticism from crypto executives who had predicted their sector would be treated seriously under the new administration. For supporters, investing in these tokens represents an opportunity to align with a political ideology. For detractors, the skyrocketing value of the coins is a sign of speculative madness.
As Trump returns to the White House, the U.S. crypto and financial industries will keep an eye on three things: the regulatory agency to lead the new administration will be named, executive orders aimed at reducing regulatory hurdles to cryptography and to promote the widespread adoption of digital assets that Trump has promised to release; and the responsible integration of blockchain-based financial services and payments within traditional financial and business sectors.
Learn more: The three most important US crypto policies to watch this year
At the crossroads of politics and finance
One of the most immediate impacts of a new administration is the appointment of heads of regulatory agencies. From the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), these agencies play a crucial role in determining how cryptocurrencies and blockchain technologies are regulated. Trump’s picks for these positions will signal the administration’s priorities and set the tone for the industry.
As PYMNTS writes, the need for clear regulatory frameworks remains one of the most pressing issues facing the crypto industry. During its previous term, the Trump administration took a mixed stance on cryptocurrencies. While some officials viewed Bitcoin and other digital assets as tools to enable illicit activity, others recognized their potential to spur innovation and economic growth.
This time, Trump promised a more favorable approach. It was reported on Friday (January 17) that Trump plans to issue an executive order shortly after taking office that would designate cryptocurrency as a national priority, guide government agencies to work closely with the crypto industry and would establish a crypto advisory council. will defend the political priorities of the industry.
Although his appointments to the agency will be key in determining how this promise translates into action, the administration’s pro-crypto stance is already having an impact on the broader market, with bitcoin hitting record highs ahead of the inauguration of Trump.
Earlier, Ripple CEO Brad Garlinghouse highlighted a “Trump bull market” in an article on signed within the previous six months.
“2025 is here and the Trump bull market is real,” Garlinghouse wrote.
Trump plans to create an artificial intelligence (AI) and crypto czar, a new position filled by David Sacks, a noted regulatory skeptic, general partner at venture capital firm Craft Venture and co-founder from PayPal.
Read also: Bears, Bulls and Regulations Shape Crypto Aspirations for 2025
Unpacking the Implications
Perhaps the most important challenge for the administration will be the responsible integration of blockchain-based financial services within the traditional financial system. Although cryptocurrencies offer many benefits, including faster transactions, lower fees and greater financial inclusion, their adoption has raised concerns around stability, security and compliance.
A crypto-friendly program is not without risks. Easing regulations could open the door to fraud and market manipulation, problems that have plagued the industry. Still, for crypto enthusiasts, Trump’s policies represent a much-needed tailwind in an industry often bogged down by regulatory uncertainty.
PYMNTS wrote last week about the emergence of stablecoins as a way for banks to offer their customers the crypto and FinTech innovation they desire.
“It’s not about replacing existing systems. It’s about providing an additional option,” Miles Paschini, CEO of FV Bank, told PYMNTS. “Where stablecoins offer superior benefits, customers will naturally gravitate towards them.”
For the crypto and financial industries, the next four years will be a time of both challenges and opportunities. As the administration’s policies take shape, the world will be watching to see whether Trump delivers on his promises and whether the United States can seize the opportunity to lead the blockchain revolution.
