Cryptocurrency Regulation Eased: An Overview of Recent Appointments of Trump Administration Officials and Legislative Progress

Introduction

Bitcoin has recently seen a decline, but its status as a core asset in USD remains unaffected. Regulatory trends are easing, and USD assets are expected to maintain a fluctuating upward trend.

With the implementation of the Trump administration's crypto-friendly policies, the U.S. crypto industry is facing unprecedented opportunities. Core institutions such as the Treasury, SEC, and CFTC are led by officials who support crypto, the White House has established a Digital Asset Working Group, and Congress has set up a Crypto Asset Committee to promote the legalization and institutionalization of the industry. This policy direction has boosted market confidence and accelerated the entry of mainstream financial institutions.

At the legislative level, the advancement of the FIT21 bill, the establishment of a regulatory framework for stablecoins, and the softening of the SEC's enforcement attitude signify that the crypto industry is bidding farewell to policy uncertainty and moving towards a more stable and sustainable development path. Although the short-term market may experience fluctuations due to macroeconomic factors and the timing of policy implementation, the long-term trend is positive. The U.S. is accelerating the construction of the most competitive crypto financial ecosystem globally, with the industry transitioning from the "Wild West" to the mainstream financial system.

1. The Trump Administration Appoints Crypto-Friendly Officials, Industry Welcomes Development Opportunities

1. Key Regulatory Agency Leadership Adjustments

The Trump administration has demonstrated a crypto-friendly stance in its leadership arrangements at key financial regulatory agencies:

Treasury Secretary/Scott Bessent: As a hedge fund manager and cryptocurrency advocate, he supports Bitcoin and decentralized finance (DeFi), pushing the Treasury to ease regulations on crypto assets and providing more room for the industry in tax policy.

SEC Chairman/Paul Atkins: A former SEC commissioner, he supports the development of free markets and reducing regulatory intervention. His appointment suggests that the SEC may reduce enforcement actions, promoting free market development.

CFTC Chairman/Brian Quintenz: As a former CFTC commissioner, he supports relaxed regulation of crypto derivatives and DeFi, and the CFTC is expected to encourage innovation rather than restrict industry development.

The appointments of these key officials have strengthened market confidence, with investors anticipating a more open regulatory environment in the U.S.

2. White House Digital Asset Working Group

The Trump administration established the Presidential Working Group on Digital Asset Markets, led by White House AI and Crypto Special Advisor David Sacks, with members including the Treasury Secretary, Attorney General, and heads of key regulatory agencies like the SEC and CFTC.

The goals of this working group include:

Developing a national regulatory framework for cryptocurrencies ------ unifying market structure, consumer protection, and risk management rules.

Assessing the feasibility of Bitcoin as a national reserve ------ submitting relevant policy recommendations within 180 days.

Preventing the development of CBDCs ------ explicitly prohibiting the Federal Reserve from developing a Central Bank Digital Currency (CBDC) to protect the private digital currency market.

The establishment of this working group positions the U.S. as a global cryptocurrency center, making policy advancement more systematic.

3. U.S. Senate Banking Committee: Establishing a Digital Asset Committee

On January 23, 2025, the Senate Banking Committee established a Digital Asset Committee, chaired by Senator Cynthia Lummis, to promote industry compliance: through bipartisan legislative efforts, facilitating stablecoin regulation, optimizing market structure, and pushing for Bitcoin to become a national strategic reserve asset. The committee will oversee financial regulatory agencies to prevent discriminatory suppression of cryptocurrencies, such as "Operation Chokepoint 2.0."

Lummis proposed the Strategic Bitcoin Reserve Act, suggesting the sale of part of the Federal Reserve's gold reserves to purchase 1 million Bitcoins, establishing a national Bitcoin reserve, reflecting the Trump administration's emphasis on Bitcoin.

Here is an overview of crypto-related officials appointed since Trump took office:

2. U.S. Crypto Legislation Sees a Turning Point, Regulatory Easing, Industry Moves Towards Mainstream

1. SEC Eases Regulations, Crypto Industry Gains Breathing Room

Recent policy adjustments by the SEC indicate a softening of regulatory attitudes:

Ending enforcement actions against crypto giants: Terminating investigations and lawsuits against companies like Uniswap Labs, Robinhood Crypto, OpenSea, Coinbase, and Gemini.

Recognizing Memecoins as non-securities: Allowing certain tokens to avoid the constraints of securities regulations, promoting market innovation.

Enhancing industry communication: SEC Commissioner Uyeda acknowledged past over-reliance on enforcement and committed to promoting policy transparency and dialogue with major industry firms and leaders.

These measures have allowed the U.S. crypto industry to escape frequent enforcement pressures and move towards a more stable and healthy direction.

2. Stablecoin Legislation on the Agenda, Market Confidence Strengthened

On February 5, U.S. Senator Bill Hagerty proposed stablecoin regulatory legislation, bringing USDT, USDC, and other stablecoins under the Federal Reserve's regulatory framework, providing compliance operational guidelines. This bill has garnered bipartisan support and is seen as a key step for the crypto market towards the mainstream financial system. Once passed, the legitimacy and security of stablecoins will significantly improve, expected to attract more traditional financial institutions into the market and further drive industry development.

3. Repeal of SAB121, Easing Crypto Accounting Policies

On January 24, the SEC officially repealed the SAB121 crypto accounting policy, allowing for more flexible financial handling of crypto asset custody services. Previously, this policy required custodians to include client crypto assets on their balance sheets, increasing compliance costs and operational pressures. After the policy adjustment, banks, exchanges, and financial institutions can provide crypto asset custody services more freely, lowering barriers for institutional investors to enter the market.

4. FIT21 Bill: Clear Regulatory Framework for the Crypto Market

On May 22, 2024, the FIT21 bill passed in the House of Representatives, seen as a historic breakthrough for the U.S. crypto industry. This bill addresses the long-standing disagreements between the SEC and CFTC regarding cryptocurrency regulation and clarifies:

Regulatory powers of the SEC and CFTC: Ending the chaotic regulatory situation and providing a unified regulatory framework.

Classification standards for cryptocurrencies as securities or commodities: Resolving core legal disputes and avoiding regulatory overlap.

Clear rules for token issuance and trading: Providing practitioners with clear compliance guidance and reducing uncertainty.

Promoting DeFi regulatory research: Facilitating the integration of decentralized finance (DeFi) with mainstream markets.

The advancement of this bill is gradually legalizing and institutionalizing the U.S. crypto market, enhancing market confidence, and the U.S. may become the most competitive crypto financial center globally.

4. Conclusion: The Crypto Industry Moves Towards Mainstream, Welcoming a Golden Development Period

Since the Trump administration took office, the policy environment for the U.S. crypto industry has undergone fundamental changes, with regulatory attitudes shifting from high pressure to friendly, significantly boosting market confidence. The government has gradually clarified the regulatory framework for the crypto industry through key official appointments, the establishment of a Digital Asset Working Group, and the promotion of congressional legislation, providing a more stable policy environment.

The SEC has relaxed enforcement, stablecoin regulation is accelerating, and the FIT21 bill has successfully passed the House, with the crypto market rapidly moving towards legalization and institutionalization. As favorable policies continue to be implemented, the environment for corporate innovation is further opening up, investor confidence is strengthening, and areas such as stablecoins, DeFi, and custody may welcome a new wave of growth.

The U.S. is accelerating the consolidation of its position as a global crypto financial center, and the golden development period for the industry is about to arrive, with cryptocurrencies moving towards the mainstream financial system becoming an inevitable trend.