Author: Techub Crypto Strategist
—From Regulatory Game to Ecological Reconstruction, Who is Defining the Crypto Future?
On March 7, 2025, the White House held its first Cryptocurrency Industry Summit. This closed-door meeting led by the Trump administration, with its "all-star" lineup of participants and forward-looking agenda, was seen by the industry as a key milestone in the transition of cryptocurrencies from fringe innovation to mainstream adoption. From exchange giants, Wall Street capital to blockchain protocol founders, various forces gathered in Washington, engaging in fierce battles on the balance between regulation and innovation. How will this meeting reshape the rules and landscape of the global cryptocurrency market? The following is an in-depth analysis from three dimensions: the background of the participants, the core issues, and the potential impact.
Participant Map: The Triumvirate of Power, Capital, and Technology
Although the full list of 50 participants was not publicly disclosed, according to the White House statement, the meeting was led by "Crypto Czar" David Sacks, the White House's AI and Crypto Affairs Advisor, and managed by Bo Hines, the Executive Director of the Digital Asset Advisory Committee. The attendees not only included corporate leaders from Coinbase, MicroStrategy, etc., but also members of the President's Digital Asset Working Group, highlighting the Trump administration's comprehensive courting of the crypto industry.
(The image only shows a portion of the participants)
1. Exchange and Financial Service Giants: Pioneers of Compliance
Brian Armstrong (Coinbase CEO), as the helmsman of the largest compliant exchange in the US, Coinbase has in recent years lobbied to promote the "Digital Asset Market Structure Act" (DAMA), directly targeting the SEC's clarification of token classification standards. Armstrong stated publicly before the meeting: "Regulation should not be the enemy of innovation, but the shield to protect users."
Vlad Tenev (Robinhood CEO) Robinhood, with its zero-commission crypto trading, has attracted over 20 million young users, but its "payment for order flow" model has been investigated by the SEC. At this summit, Tenev may push for a retail-friendly regulatory framework, balancing market access and risk control.
Arjun Sethi (Kraken CEO) Kraken was recently sued by the SEC over its staking services, and Sethi's speech may focus on "modernizing regulatory measures", emphasizing the controversy over the applicability of traditional securities laws to on-chain activities like staking and lending.
2. Bitcoin Purists: Preachers of Decentralization
Michael Saylor (MicroStrategy Founder), the "Bitcoin Whale" holding over 200,000 BTC, has always advocated that "Bitcoin is digital gold". His speech is likely to emphasize the monetary policy independence of Bitcoin and oppose the potential erosion of crypto assets by CBDCs.
David Bailey (Bitcoin Magazine CEO), as the mouthpiece of the Bitcoin core community, Bailey may criticize "over-regulation" for its destruction of the decentralization spirit, and call for the protection of miner interests and privacy technology innovation.
3. Capital Manipulators: Drivers of Institutionalization
Matt Huang (Paradigm Co-founder), this top-tier crypto VC firm has invested in projects like Uniswap and FTX. Huang may propose "progressive regulation", advocating for a sandbox mechanism for DeFi protocols.
Kyle Samani (Multicoin Capital Managing Partner), known for betting on disruptive projects like Solana and Helium, Samani may emphasize that "regulation needs to adapt to the multi-chain ecosystem" to avoid the repetition of Ethereum's centralization issues.
4. Protocol Builders: Pioneers of Technical Implementation
Sergey Nazarov (Chainlink Co-founder), Chainlink's oracles provide data support for the trillion-dollar DeFi ecosystem, and Nazarov may call for the establishment of "on-chain compliance infrastructure", such as a verifiable KYC oracle network.
Jp Richardson (Exodus CEO), the participation of this self-custodial wallet provider suggests the meeting may discuss private key management standards, balancing user asset control and anti-money laundering requirements.
5. Representatives of Emerging Forces: Voices of Globalization and Liberalism
Zach Witkoff (World Liberty Fund Co-founder), this organization is dedicated to promoting financial inclusion through cryptocurrencies, and Witkoff may propose the concept of "regulatory exemption zones" to allow developing countries to experiment with cryptocurrency policies.
Core Issues: Divisions and Consensus Coexist
Although the Trump administration has made a high-profile overture to the crypto industry, the market has experienced violent fluctuations recently - Bitcoin has plummeted from a high of $109,800 in January to a low of $78,200, almost wiping out the entire post-election rally. Analysts point out that the market urgently needs two catalysts: the Fed's interest rate cut materializing or the Trump administration introducing a clear regulatory framework.
1. Regulatory Framework: Where Can the SEC's "Iron Fist" Swing?
Token Classification Deadlock: The SEC insists on the "Howey Test" principle, deeming most tokens as securities; Coinbase and others demand dynamic classification based on the actual use of tokens (such as governance, payment).
DeFi Regulatory Vacuum: Do protocols like Uniswap need to bear the "exchange" responsibility? Paradigm may propose "protocol developers exempt from liability, front-end interfaces subject to regulation".
Cross-border Enforcement Dilemma: The U.S. Department of Justice is targeting mixers like Tornado Cash, but the decentralized nature makes accountability difficult.
2. Financial Stability: Are Cryptocurrencies a "Source of Risk" or a "Panacea"?
Priority of Stablecoin Legislation: Circle (USDC issuer) advocates placing stablecoin regulation before CBDCs, to avoid a double shock to the dollar system.
Too Big to Fail (TBTF) Controversy: If systemically important institutions like Coinbase fail, should a "crypto deposit insurance fund" be established?
Exploration of Countercyclical Tools: MicroStrategy proposes allowing companies to include a combination of Treasuries and Bitcoin on their balance sheets to hedge fiat inflation risks.
3. Technological Innovation: Who Can Define the Standards of the Next-Generation Infrastructure?
Battle of Modular Blockchains: Celestia's modular architecture challenges Ethereum's "all-in-one chain" model, and regulation may influence technology roadmap choices.
Compliance Paradox of ZK-Rollups: How to balance privacy and regulatory transparency? Vitalik Buterin's proposed "compliant ZK-SNARKs" may be a compromise.
AI and Crypto Fusion: Worldcoin's iris scanning identity protocol has been investigated by multiple countries, and the summit may explore regulations for on-chain storage of biometric data.
4. Two Extreme Narratives of Price Prediction:
Crazy Prophecy of Standard Chartered: Analyst Geoff Kendrick predicts Bitcoin could hit $500,000 during Trump's term, citing institutional demand surge and regulatory certainty improvement;
Reality Constraints: If the Fed delays rate cuts or the regulatory framework remains ambiguous, the market may plunge into another "policy panic sell-off".
III. Potential Impact: Five Forecasts for 2025-2030
The consensus and divisions of this summit will profoundly shape the industry's direction over the next five years:
1. Regulation: From Wild Growth to "Licensing 2.0"
The U.S. may introduce a "Federal Crypto License" to replace the current state-based MTL (Money Transmitter License) system, causing compliance costs for exchanges to soar and accelerating the elimination of small-to-medium platforms. The SEC may issue "non-security statements" for the top 50 tokens by market cap, clearing obstacles for institutional entry.
2. Market Structure: Institutional Whales Swallowing, Retail Tide Receding
The scale of Bitcoin ETFs from asset management giants like BlackRock and Fidelity will exceed $500 billion, controlling pricing power. Retail investors will shift to "compliant DeFi" products, such as tokenized Treasury bond funds, with yield competition replacing speculative trading.
3. Technical Route: Innovation Tradeoffs under Compliance Priority
Privacy coins (such as Monero) may be completely delisted, and Zcash will need to forcibly enable transparent transaction mode. Ethereum L2 needs to embed a "regulatory module", such as automatically reporting large transactions to the authorities.
4. Geopolitical Finance: US Dollar Stablecoin Alliance vs. Multipolar Reserve
The US or the G7 countries may establish a "Stablecoin Standards Committee" to include USDT and USDC in the IMF's Special Drawing Rights (SDR) basket. Emerging market countries are accelerating the layout of their own stablecoins, such as Nigeria's eNaira and crypto-currency interoperability protocols.
5. Social Controversies: Energy, Fairness, and AI Ethics
Bitcoin mining may be included in the "green bond" framework, offsetting emissions through carbon credit trading. DAOs (Decentralized Autonomous Organizations) may be granted "limited legal personality", but their decision-making algorithms need to undergo anti-discrimination review.
Conclusion: The Promises of the Summit and
The Bets of the Market
The role played by Trump in the summit is essentially a high-risk political gamble - to harvest crypto votes and capital support by deregulating, while shaping "American crypto hegemony" as a personal legacy. Although the White House statement promises to "provide a clear regulatory framework to promote innovation", the real market anxiety is whether this policy dividend can offset the uncertainties of the Fed's interest rate policy and geopolitical conflicts.
As Chainlink founder Sergey Nazarov warned after the event: "When cryptocurrencies become a political tool, their fate is bound to the power games in Washington." This summit may have bought the industry a respite, but the tug-of-war between decentralized idealism and centralized power is destined to be an endless game without a final outcome.
