We’re now one week into Donald Trump’s presidency — the very start of what will be a consequential four years for the crypto industry.
The decisions made by his administration will shape this sector for decades, directly affect millions of investors worldwide, and determine whether other major economies enact pro-Bitcoin policies of their own.
With Silk Road founder Ross Ulbricht pardoned, and a crypto-focused executive order now signed, Trump has already come good on some of the promises made during the campaign.
But as Bitcoin’s bull run shows signs of stalling, many unanswered questions remain — as we’re about to find out.
1. Will a Strategic Bitcoin Reserve Happen?
To an adoring crowd at the Bitcoin 2024 conference, Trump had a simple message: if elected, his administration would “keep 100% of all the Bitcoin the U.S. government currently holds or acquires into the future.”
Make no mistake, this was a huge promise that would put BTC right at the heart of America’s economy, leaving other nations in the G20 with little choice but to do the same.
Yet there was disappointment when last week’s executive order stated that the White House would only now “evaluate” this policy, watering down this pledge — and creating a risk it’ll never happen at all.
Polymarket’s odds indicate that the prognosis isn’t good. Just 16% of bettors now think this stockpile is likely in Trump’s first 100 days, while the prospects of a reserve emerging this year are effectively 50/50.
The reluctance to even convert BTC seized from criminals into a stockpile indicates there may be legal complexities or a change of focus, with AI dominating presidential priorities so far. And it doesn’t bode well for Senator Cynthia Lummis’s ambition of acquiring one million Bitcoin over a five-year period.
2. Are Banks Going to Adopt Bitcoin?
The Securities and Exchange Commission scrapping SAB 121, which stopped banks from taking custody of Bitcoin on behalf of clients, is a huge deal.
With this guardrail now torn down, it’ll be fascinating to see how financial firms react and adapt — and whether traditional institutions could end up becoming a rival to long-running crypto exchanges… or maybe even acquisition targets.
USDC’s market cap over the past 12 months. Source: CoinMarketCap
3. Will Stablecoins Take Center Stage?
Trump’s executive order officially sounded the death knell for a U.S. central bank digital currency, with skeptics claiming it could be used to spy on consumers and control their spending.
But it also opened the door for the likes of USDC and USDT to serve as an alternative, with actions “to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”
There are hopes such digital assets could assert the dollar’s dominance in the global economy, yet this won’t be without challenges.
Specific legislation on stablecoins is yet to make its way through Congress — and careful scrutiny must be paid to the reserves used to back them.
4. Will Trump’s Cryptocurrency Be Investigated?
It’s been a dramatic week for $TRUMP, the meme coin that was launched mere days before the inauguration.
Fresh from losing 50% of its value over the past seven days — and now trading 65% off all-time highs — some Democrats are demanding an investigation be held into the “unprecedented concerns” it raises.
Trump’s arch-rival Elizabeth Warren (who he disparagingly refers to as “Pocahontas”) has urged the SEC and CFTC to look into the circumstances surrounding this token’s debut — citing threats including “consumer ripoffs, corruption and foreign influence, and conflicts of interest.”
Given both agencies are now being stacked with pro-crypto commissioners — and a clause in $TRUMP’s terms and conditions includes a waiver against class actions — it’s unlikely this backlash will end up troubling the president all that much.
Source: Polymarket
5. Will Altcoin-Focused ETFs Launch?
Exchange-traded funds based on the spot prices of Bitcoin and Ether proved hugely popular in 2024, and were approved despite reticence from the Securities and Exchange Commission.
But now, there’s a widespread expectation that asset management firms will be given permission to launch products tracking smaller cryptocurrencies including XRP, Solana… and even $TRUMP.
It’ll be fascinating to see whether such they end up attracting interest among institutions, especially considering inflows into ETH ETFs have proven to be pretty underwhelming so far.
While the total net assets held by 12 Bitcoin spot ETFs now stands at $123 billion, the nine focusing on Ether lag behind on $12 billion.
6. Will Elon Musk Turn to Blockchain?
Reports recently suggested that the Department of Government Efficiency (known as DOGE for short) is exploring whether federal spending could be tracked using blockchain technology.
Such a move has the potential to supercharge transparency, streamline payments, and even change the way government buildings are managed.
But a bigger question is this: which blockchain project would be seen as being up to the task? Would its native token end up surging in value? And could this cause security concerns to emerge?
7. Will ‘Trumponomics’ Derail the Bull Run?
Trump’s vow to impose tariffs on foreign goods is just one economic policy that could send shockwaves through the markets, exacerbating inflation while slowing growth.
The president has already urged the Federal Reserve to start cutting interest rates — claiming he has a better understanding of monetary policy than this central bank does.
All of this unpredictability could lead to a surge of volatility across the stock market — and given how Bitcoin has a close correlation to the tech-heavy Nasdaq 100, pullbacks could be costly.
The post 7 Unanswered Questions for Crypto Under Donald Trump appeared first on Cryptonews.
