In the short span of eight weeks, from the resignation of the SEC chairman to Trump's consecutive signing of two executive orders - announcing the development of a digital asset plan and officially announcing the Bitcoin strategic reserve, to the White House hosting the first digital asset summit, the Altcoin market has been constantly reacting, fluctuating up and down with various policy changes, and the entire industry is both excited and anxious.

Author: Weilin, PANews

Cover: Photo by Steve Harvey on Unsplash

Since Trump officially began his second presidential term on January 20, the regulatory landscape for Altcoins in the US has been "dramatic", with one climax after another. In the short span of eight weeks, from the resignation of the SEC chairman, to Trump's consecutive signing of two executive orders - announcing the development of a digital asset plan and officially announcing the Bitcoin strategic reserve, to the White House hosting the first digital asset summit, the Altcoin market has been constantly reacting, fluctuating up and down with various policy changes, and the entire industry is both excited and anxious.

This article will categorize and review these significant Altcoin regulatory policy initiatives, and interpret their far-reaching impact on the Altcoin industry.

Executive Order by President Trump to Strengthen US Leadership in Digital Finance Technology

On his third day in office, on January 23, US President Trump signed the Executive Order "Strengthening US Leadership in Digital Finance Technology", proposing the establishment of a "President's Digital Asset Markets Working Group" to explore federal regulatory measures for Altcoins and national digital asset reserve plans, and explicitly prohibiting the "establishment, issuance, circulation or use" of Central Bank Digital Currencies (CBDCs).

SEC Chair Transition, Major Regulatory Strategy Adjustments

In July last year, at the Bitcoin 2024 conference in Nashville, Trump gave a speech promising to fire SEC Chair Gary Gensler on his first day in office, who had been heavily criticized by the Altcoin industry. On November 22, 2024, the SEC announced that Gary Gensler would step down on the first day of Trump's term. On January 20th, he officially stepped down. His successor is Paul Atkins, CEO of Patomak Global Partners LLC and former SEC Commissioner, whose nomination is currently awaiting Congressional confirmation.

On January 22, the SEC immediately established a Crypto-Specific Task Force, began adjusting its regulatory strategy, reduced the team responsible for Altcoin enforcement actions, and reassigned some lawyers. The SEC also launched a website for the Crypto-Specific Task Force, with its head Hester Peirce outlining ten priority tasks, focusing on the classification and regulation of Altcoin assets.

On January 24, the SEC announced in its latest Staff Accounting Bulletin No. 122 the withdrawal of the controversial crypto accounting policy SAB 121, which had required digital asset custodians to treat digital assets as liabilities and report them at fair value on the balance sheet. The Altcoin industry had widely feared that this could prevent banks from custodying digital assets, effectively excluding banks from the Altcoin market.

In addition, on May 22 last year, the FIT21 bill was passed in the House of Representatives, seen as a historic breakthrough for the US crypto industry. The bill resolved the long-standing differences between the SEC and CFTC in regulating cryptocurrencies, and is currently progressing.

SEC Collectively Withdraws Lawsuits Against Crypto Companies

On February 27, the SEC terminated its investigation of Gemini Trust and took no enforcement action. Prior to this, the SEC had withdrawn its lawsuit against Coinbase and terminated investigations into OpenSea, Robinhood, and Uniswap. In the seventh week of Trump's term (March 3-9), the SEC agreed to dismiss its lawsuit against Kraken, with no fines or admissions of wrongdoing, and Kraken's business model remained unaffected.

Redefining "Exchange," Overturning the IRS's DeFi Broker Rules

On March 11, it was reported that the SEC is evaluating a proposal to redefine "exchange," which could provide clearer guidance on the regulatory framework for US crypto trading platforms.

Meanwhile, the US House of Representatives passed a resolution overturning the IRS's broker rules for decentralized finance (DeFi) platforms. The rule requires crypto entities to collect specific taxpayer and transaction information, which DeFi platforms find difficult to implement. The US Senate had previously voted to pass the resolution, but due to budget rules, it still needs another vote before being sent to President Trump for signing.

Pardoning Silk Road Founder Ross Ulbricht

On January 22, Trump fulfilled another promise made at the Bitcoin 2024 conference, pardoning Silk Road founder Ross Ulbricht, who was sentenced to life without parole. Ulbricht later expressed gratitude to Trump on Twitter, who released him after 11 years of imprisonment.

SEC, CFTC, Treasury, and Commerce Appoint Crypto-Friendly Officials

On January 20, after the presidential inauguration, the White House announced that the newly sworn-in President Trump had appointed Republican Mark Uyeda as acting chairman of the US Securities and Exchange Commission (SEC). Previously, Trump had announced the nomination of Paul Atkins as SEC chairman.

In the second week of Trump's term, the Senate confirmed his nominee for Treasury Secretary, Scott Bessent, a financial heavyweight with an open attitude towards cryptocurrencies.

In the fourth week, Trump nominated former CFTC commissioner and Kalshi executive Brian Quintenz as the new head of the Commodity Futures Trading Commission (CFTC).

In the fifth week, billionaire Howard Lutnick was confirmed as the next Commerce Secretary, prompting the market to focus on how he will influence the regulatory environment for the crypto industry.

On the congressional side, there are also crypto-friendly officials in key positions. On January 23, the Senate Banking Committee established a Digital Assets Committee, chaired by Senator Cynthia Lummis, to promote industry compliance. On March 3, the House Republican Leader and Congressman Ritchie Torres are jointly forming the "Congressional Crypto Caucus" to promote crypto-friendly legislation and build a voting coalition for digital assets in the House.

Officially Announcing Strategic Bitcoin and Digital Asset Reserves

In the sixth week of his term (February 24 - March 2), Trump announced on social media 5 major crypto strategic reserve categories, including BTC, ETH, XRP, SOL, and ADA. The inclusion of ADA sparked controversy, with some market participants jokingly calling it an "advertising slot." However, on March 7, AI and crypto czar David Sacks stated that ADA, SOL, and XRP were mentioned because they are among the top 5 cryptocurrencies by market capitalization.

On the morning of March 7, Beijing time, the strategic Bitcoin reserve promised by Trump arrived! David Sacks announced on the X platform that President Trump had officially signed an executive order to establish a strategic Bitcoin reserve and digital asset reserve. However, as both reserves are primarily funded by "proceeds from criminal or civil asset forfeiture," the market initially reacted negatively to the prices of BTC and other tokens, though they later rebounded slightly.

In addition to the presidential executive order, in terms of congressional legislation, on March 12, US Senator Cynthia Lummis resubmitted the Bitcoin bill (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2025) in the 119th Congress, which will allow the US government to hold over 1 million bitcoins. The bill was initially proposed in July 2024, requiring the US government to purchase 200,000 bitcoins per year for five years, funded by adjustments to existing Federal Reserve and Treasury resources. In this latest revision, the US government can hold additional bitcoins through legal means (including civil or criminal forfeiture, donations, or transfers from federal agencies).

Holding the White House's First Digital Asset Briefing and White House Digital Asset Summit

In the third week of Trump's term (February 3-9), David Sacks and several US congressional legislators held the first news conference on digital assets at Capitol Hill, detailing the latest plans for the White House and Congress to develop digital assets in the US. Sacks expressed his expectation to collaborate with congressional legislators, boldly announcing the goal to "create a golden age of digital assets."

On March 7, local time, the US held its first White House Digital Asset Summit, where President Trump gave a brief speech. He stated that last year, I promised to make America the global Bitcoin superpower and the world's crypto capital. We are taking historic actions to fulfill this promise, and suggested, "From today on, America will follow the rule known to every Bitcoin holder - never sell your Bitcoin."

Trump mentioned that he will terminate the Biden administration's "Operation Chokepoint 2.0" targeting the crypto industry. However, despite reports of industry leaders' recognition of the summit, it did not lead to price increases in Bitcoin, Ethereum, and other assets, as the crypto market saw significant declines after the summit.

The Market Sees a Wave of Crypto ETF Applications

As of March 12, tokens with ETF applications include at least DOGE, LTC, HEAR, SOL, XRP, SUI, AVAX, DOT, LINK, ADA, APT, and AXL. According to Bloomberg analysts James Seyffart and Eric Balchunas, the market currently has a relatively higher probability of approving spot ETFs for LTC, DOGE, SOL, and XRP. Expectations for the listing of other mainstream crypto asset ETFs on the US capital market have also significantly increased.

Due to the important changes in the SEC's personnel, its policies have become more crypto-friendly. If the US introduces Altcoin ETFs, it may directly lead to imitation by other countries and regions around the world. Bloomberg analysts expect the SEC to make a decision on the proposed Altcoin ETFs by October this year.

The Senate Holds a Hearing, "Debanking" Sparks Widespread Discussion

On the evening of February 5, the US Senate Banking, Housing, and Urban Affairs Committee held a hearing on "Investigating the Real Impact of Debanking on America." Witnesses included Anchorage Digital co-founder and CEO Nathan McCauley, Davis Wright Tremaine LLP partner Stephen Gannon, Old Glory Bank president and CEO Mike Ring, and Brookings Institution senior research fellow Aaron Klein. The hearing discussed the impact of account closures and financial service restrictions on businesses and individuals, and explored relevant policy responses.

On February 11, local time, at the Senate Banking Committee hearing, Federal Reserve Chairman Jerome Powell stated that given the criticism that the crypto industry has faced in being excluded from banking services, now is the time to "re-examine" the debanking issue. Senate Banking Committee Chairman, South Carolina Republican Senator Tim Scott, asked Powell if he agreed to work with legislators to end debanking; Powell said he agreed. Discussions on "debanking" are expected to further intensify this year.

US States Show Strong Interest in Bitcoin Reserves

As of March 4, 24 US states have proposed cryptocurrency reserve bill drafts, with most states' bills still in the draft proposal or House consideration stage, while a few states (such as Texas and Utah) have made faster progress, and 5 states (Pennsylvania, Montana, North Dakota, Wyoming, South Dakota) have had their relevant bills rejected. The reasons for rejection include concerns about the risks and volatility associated with digital assets, taxpayer fund risk concerns, the high energy consumption of cryptocurrency mining, and the potential use of digital currencies for illegal activities.

Texas, which is at the forefront, has previously passed the SB 21 bill, which stipulates the creation of a state-managed fund to hold Bitcoin and other cryptocurrencies. The Texas Comptroller will be responsible for overseeing the reserve, which will hold at least $500 billion worth of cryptocurrencies and be eligible for state budget allocations.

Legislation Surrounding the Stablecoin Regulatory Framework

On February 5, US Senator Bill Hagerty introduced the Stablecoin Regulatory Clarity Act (GENIUS Act), which will bring USDT, USDC and other stablecoins under the Federal Reserve's regulatory framework and provide compliance operation guidelines. As of March 12, the US Senate has updated the bill, with the updated bill specifically expanding the "reciprocity provisions for stablecoin payments in overseas jurisdictions".

At the White House summit, Trump instructed his policy executors to push for stablecoin legislation, with the plan to complete it before the August congressional recess. The initial target was to submit legislation within the first 100 days of his term, but the timeline has now been extended by 4 months.

Conclusion

In general, in the 8 weeks since Trump took office, there have been a series of major adjustments in US crypto regulation, from policy direction to key personnel changes, all pointing to a more open regulatory environment. Will the US really become the "crypto capital of the world" as Trump claims? Policy uncertainty still exists, and the market reaction is also relatively cautious, so the future regulatory direction still needs to be closely monitored.

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