Trump's crypto policy appears to open the green light for the industry, but it actually hides traps.

Author: Anderson Sima, Executive Editor of Foresight News

The crypto market is celebrating Trump again.

But I'm not excited, not because I don't hold the three tokens SOL, XRP, and ADA, but because a series of measures taken by President Trump after taking office have made me worried about the crypto industry, in addition to the excitement.

Just before the Trump administration announced the Crypto Currency Strategic Reserve Initiative on March 2, another globally-watched diplomatic event is also worth the crypto industry's attention.

On February 28, US President Trump, Vice President Pence, and visiting Ukrainian President Zelensky had a fierce argument in front of the media. This unusual diplomatic dispute revealed the US government's frustration with the infinite responsibility of leading world peace, with the key dispute being Trump's unwillingness to pay an undue price for other countries - that is, America First.

Yes, this is Trump's campaign slogan and governing philosophy. Understanding this, you can also see what political motives are behind Trump's crypto-friendly new policies?

"America First" does not mean financial equality

Trump's core philosophy is "America First", and his policy goals have always been to consolidate America's global hegemony and economic interests. In the field of cryptocurrencies, although he claims to want to make the US the "global crypto capital", his policy is essentially to implement trade protectionism with state power to ensure that the US always maintains a leading position in the world.

So what is the essence of cryptocurrencies? Cryptocurrencies are actually no different from traditional financial markets in terms of specific products and forms, and cryptocurrencies are even now included in the commodity category, allowing ETF or futures trading. But there are so many financial products in the world, what is special about cryptocurrencies?

As a practitioner, my answer is that the emergence of cryptocurrencies is essentially a financial equality movement. From the perspective of Marxist economics, financial products, as a derivative system of capitalism, have always represented the interests of the elite from the beginning, and are the tool for the unlimited expansion of capital, but they do not serve the proletariat, and they also favor big capital and power machines.

But the emergence of Bitcoin is a dissatisfaction and innovation against this system. The design of cryptocurrencies and the emergence of smart contracts can allow all investors to enter a brand new financial system without permission and without thresholds, a system that was born global, permissionless, and even publicly transparent. If it's "America First", blockchain technology wouldn't have been invented by an anonymous person.

If the US really implements the Bitcoin strategic reserve, I would be very excited about it. But four years later, will the new US president still adhere to this policy? Can the market bear the huge selling pressure at that time? Will the Democratic Party revive the "crypto prison"? The market is always timely, and the long-term is not in the consideration of traders, but as a long-term practitioner, this question is very important.

Trump has opened Pandora's box

In addition to the motivation behind the relevant policies, the TRUMP and MELANIA meme coins launched by the Trump couple not only increase the speculative bubble in the crypto market, but also open the Pandora's box of "celebrity issuance", triggering a chain reaction.

The president's personal issuance of coins was pioneered by Trump, and it also created a super hot spot in the market. After the TRUMP coin was launched, its market value once soared to around $80 billion, and then adjusted to $10 billion, with huge losses for those who chased the high. Similar cases have further spread after the issuance of coins by the first lady MELANIA and the President of Argentina, forming a vicious cycle of "celebrity-speculation-collapse", draining market liquidity and affecting the positive image of the industry and a healthy market environment.

Recently, American celebrities like Kanye West also want to join the ranks of coin issuance, and have been hyping and previewing on social media. Does the market really need so many celebrity memes? The evolution of a token's life cycle from years to hours has greatly increased the difficulty and risk, even for specialized traders.

In the past, the SEC's strict regulation has not only stifled industry innovation, but also protected the asset safety of investors. But now, with Trump's personal drive, the rapid issuance process and extremely low regulatory costs have made the crypto industry a "harvesting ground" for scams, so we jokingly say that the Myanma fraud group has started to shift to the crypto currency field. And Trump's coin issuance behavior "has made the industry a tool for political manipulation", weakening the outside world's serious understanding of blockchain technology.

Lessons from the Past: From Musk to Trump

Trump is not the first celebrity to stir up the crypto market with his influence. Tesla CEO Musk was the strongest shill in the last cycle, once driving up the price of Bitcoin by buying it with Tesla, and then turning to Dogecoin, causing Bitcoin to start plummeting. And in this cycle, Trump has become the new shill king.

It is not difficult to find that as extremely self-confident elites, Trump and Musk both have changeable market attitudes, especially President Trump, who is more of a businessman, but when cryptocurrencies are beneficial to his political influence, he does not hesitate to embrace cryptocurrencies, even though he strongly criticized cryptocurrencies a few years ago.

If the industry relies too heavily on the endorsement of centralized authorities like Trump, we will deviate from the original intention of "code is law".

The crypto industry needs to reconstruct an independent narrative

Trump's crypto policy appears to open the green light for the industry, but it actually hides traps. His "America First" logic will instrumentalize crypto technology, the celebrity coin craze will create speculative bubbles, and the strong coupling of policies and markets will plunge the industry into cyclical turmoil.

We need to clearly recognize that true financial equality cannot depend on the "grace" of political strongmen, but should return to the underlying values of technological neutrality. Only by adhering to the decentralized narrative and continuously innovating in technology can we find opportunities like AI to change the world.