# Trump Administration’s Early Term Remains Silent on Cryptocurrency Policy

Despite the onset of the Trump 2.0 era, early signals on cryptocurrency policy have not emerged. However, should any policy be articulated, it is expected to concentrate on strategizing Bitcoin as a key asset and strengthening stablecoins to maintain dollar dominance.

# Cryptocurrency Market Trends for 2025

In 2025, key trends likely to dominate include the accelerated entry of institutional players into the crypto market, explosive growth in the stablecoin sector, tokenization of real-world assets (RWA), the convergence of AI and blockchain, and the decentralization of infrastructure (DePIN).

The cryptocurrency market has seen rapid transformations through ICOs, DeFi, NFTs, and P2E, but sustained valuable projects remain rare. A measured approach is required when assessing Trump’s potential cryptocurrency policies.

Discover the insights of the Asian Web3 market, followed by over 4,000 industry leaders.

# Introduction

The cryptocurrency market in 2025 approaches a new phase with the inauguration of Trump’s second term. The U.S. now presents a redefined landscape for the crypto game, with marked institutional involvement on the horizon. Companies are anticipated to pivot seriously towards adopting blockchain and expanding their investment assets. Additionally, clear regulatory frameworks that were uncertain all this time are expected to bring about a new era.
Amidst these expectations, the market endures unprecedented changes, dismantling dominant narratives and giving rise to new projects establishing fresh market order. Participants find it challenging to navigate investment decisions in such a volatile environment.

This report provides a thorough analysis of the market impact under Trump 2.0, synthesizing insights from over 300 major Web3 institutions to pinpoint key transformations and opportunities in the 2025 cryptocurrency market.

# Expectations for the Trump 2.0 Era

The influence of the Trump administration on cryptocurrency is already visible. The $TRUMP coin has surpassed a $15.1 billion market cap, landing within the top 15, and Melania Trump’s meme coin grew to $2.2 billion within a day of its release. Additionally, the previously stagnant DeFi project, World Liberty Financial (WLFI), successfully raised $30 million, reflecting market optimism towards the Trump administration.

## Bitcoin as a Strategic Asset

The cryptocurrency policy was notably absent from Trump’s inaugural address and initial executive orders, deviating from market expectations. Trump had previously declared at a Bitcoin event the United States would consider Bitcoin a strategic reserve asset and promised to replace SEC Chair Gary Gensler and form a new crypto regulator. The lack of concrete direction, even amid Gensler’s resignation, surprised many.

Three scenarios for Bitcoin’s strategic asset classification are anticipated: maintaining the status quo opposed by key figures like Fed Chair Powell, designating the government’s 207,000 Bitcoins as strategic reserves with a plan to secure an additional one million BTC over five years, or a less likely scenario of diversifying the portfolio with various U.S.-centered cryptocurrencies due to volatility concerns.

## Strengthening Dollar-Based Stablecoins

The Trump administration is highly likely to focus on fortifying stablecoins instead of introducing a CBDC. Treasury Secretary Scott Besenet’s statement that “CBDC is unnecessary” supports this. This strategic move aims to counteract yuan and euro influence, strengthening dollar hegemony.

Since the Ukraine war, Russia and China have sought to distance themselves from the dollar-centric financial system. The U.S. froze Russia’s overseas assets, leading Russia to view the dollar as an insecure reserve currency. Consequently, China began reducing its U.S. Treasury holdings. These shifts have weakened dollar demand in global finance.

Stablecoins emerge as tools to create new demand for declining U.S. Treasuries. They provide stability, typically backed by U.S. Treasuries, thus purchasing these in large volumes. With recent Treasury auction demand faltering, new buyers would be welcomed.

Moreover, stablecoins underpin the cryptocurrency market, with most crypto transactions anchored by them, offering fast, low-fee cross-border transactions. Increased support and real-world applications will expand stablecoin use, leading to higher reinvestment in Treasuries. This could help lower U.S. bond issuance rates and alleviate fiscal burdens while maintaining the dollar’s global currency standard in the digital economy.

This stablecoin role parallels the petrodollar system post-1970s oil shock, where the U.S. secured agreements making the dollar the standard for oil trade. Resulting dollar demand led oil nations to reinvest in U.S. Treasuries, bolstering the U.S. economy.

The Trump administration views stablecoins not merely for voter appeal but as vital tools, akin to petrodollars, to secure a preeminent position in the digital economy.

# Projections from Major Institutions for 2025

What do leading Web3 institutions foresee in the Trump 2.0 era? The dominant theme is the ‘Accelerating Entry of Institutional Actors.’ With the Republican-led legislature and executive, swift policy formulation is expected, enhancing cooperation with traditional businesses.

Tiger Research, using Insights4VC reports, analyzed over 300 forecasts to predict major Web3 market trends. Detailed insights are available in Insights4VC’s 2025 cryptocurrency market outlook report.

## Accelerating Entry of Institutional Actors

The approval of Bitcoin ETFs has catalyzed rapid institutional entry into the cryptocurrency market. ETFs comply with regulations and manage risks, becoming attractive to institutional investors. This leads to increased Bitcoin holdings by corporations and governments and the launch of custodial services by financial institutions.

Bloomberg suggests Bitcoin ETF assets under management (AUM) at $110 billion may surpass gold ETFs ($128 billion). VanEck predicts that under Trump, the U.S. share of Bitcoin mining could rise from 28% to 35%, with corporate Bitcoin holdings increasing by 43%, indicating accelerating institutional adoption.

Regulatory revisions are essential for these changes to materialize. With reorganized regulations, the takeover of traditional financial services by crypto entities could rise, blurring lines between traditional finance and crypto as an integrated industry.

## Explosive Growth of Stablecoin Market

Stablecoins are rapidly becoming effective alternatives in remittance and payments, drastically reducing international remittance fees and processing times. Corporate payments and remittances are increasingly adopting stablecoins, and major banks issuing stablecoins are expected to boost market credibility.

According to Coinbase, the stablecoin market grew 48% in 2024 to $193 billion and could exceed $3 trillion by 2030. VanEck forecasts daily stablecoin trading volumes reaching $300 billion, while Galaxy anticipates continuous issuance by major financial and tech firms like BlackRock, Robinhood, and Meta.

In Asia, stablecoin development may contrast, with high CBDC interest in Southeast Asia potentially leading to stablecoin-CBDC convergence, showcasing region-specific growth directions.

## Integration of Real-World Assets (RWA) in Mainstream Finance

Tokenization of real-world assets forms a crucial bridge between traditional finance and digital assets, enhancing transaction efficiency, lowering entry barriers, and providing 24/7 liquidity. Significant asset managers’ active participation boosts market credibility and accelerates institutional investor inflow.

Bitwise projects the RWA market may reach $30 trillion by 2050, with Hashed envisioning substantial liquidity infusions from BlackRock and Franklin Templeton driving RWA market growth.

Asia anticipates active government-led tests, with Thailand, Indonesia, and Japan at the forefront of these initiatives.

## AI and Blockchain Convergence Revolutionizing Finance

The integration of AI and blockchain is revolutionizing financial services. AI agents could manage crypto wallets, optimize trades, and handle risk management autonomously, significantly reducing entry barriers for the DeFi market. Additionally, decentralized AI learning networks are expected to advance AI development democratization.

a16z Crypto predicts AI agents evolving into fully autonomous economic actors based on trusted execution environments (TEEs). Delphi Digital suggests frameworks like Virtuals and ai16z will establish an autonomous on-chain economy, dominating DeFi trading.

This narrative is gaining traction, with former PayPal COO David Sacks, appointed by President Trump as the “White House Crypto and AI Czar,” expected to showcase AI-crypto integration results. For substantive impact and full-scale support, concrete integration outcomes are necessary.

## Decentralizing Infrastructure (DePIN) to Construct a New Economic Paradigm

DePIN offers an innovative model for efficient infrastructure sharing and management using blockchain. This approach balances resource utilization and economic incentives through structures where individuals provide and get rewarded for infrastructure services like energy, telecommunications, and computing.

Messari reports DePIN’s market cap grew 132% in 2024 to $40 billion, with industry revenue projected to exceed $250 million in 2025. Galaxy foresees over half of Bitcoin mining firms collaborating with AI firms and high-performance computing service providers.

Post-P2E, DePIN might gain traction in Asia, particularly where low wage structures enable high rewards in DePIN projects, akin to how P2E gaming farms specialized.

## Conclusion

The cryptocurrency market has historically undergone rapid transformations, with significant volatility anticipated in the first quarter this year.

The market, anchored initially by Bitcoin, encountered the ICO wave following Ethereum’s ERC-20 standard emergence. The DeFi era dawned with Uniswap, NFT frontiers led by CryptoPunks, and P2E fever sparked by Axie Infinity. Dogecoin’s success heralded the meme coin era, while notable growth in L2 scaling solutions emerged. Recently, AI projects gained prominence, although Trump-related tokens are now absorbing market liquidity, ushering in a new phase.

Despite rapid changes in its short history, the cryptocurrency market has seen its share of transient value projects, with few maintaining lasting value. Amidst these dynamics, careful judgment is needed regarding Trump administration policies. Although Trump signed 100 executive orders, cryptocurrency policies may take significant time to materialize. As the economy gradually recovers and debt ratios decline, expect careful scrutiny of cryptocurrency policies.

*The above text is a comprehensive analysis from Tiger Research, a global Web3 specialist research institution and partner of Blockmedia, titled ‘Trump 2025: Are We Turning the Tide?’ The full report is accessible on the < Tiger Research > official site.*