America’s Crypto Playbook

Dear Investors,

We knew Trump would shake things up, but what happened in the last 2 weeks since he took the office still surprised many investors.

On January 23, 2025, President Trump signed?Strengthening American Leadership in Digital Financial Technology, an executive order that reverses U.S. crypto policy.

The message is clear: The U.S. is done playing defense and is now positioning itself as the global leader in blockchain and digital finance.

It’s a game-changer for crypto markets, regulations, and institutional adoption. Let’s break it down.

Read online.

Trump’s Crypto Move

What happened? President Trump’s executive orders lay the groundwork for a crypto-friendly regulatory landscape, prioritizing innovation over restriction.

Here’s what’s inside:

? Blockchain Support: The U.S. government is officially backing responsible blockchain adoption. This means fewer regulatory roadblocks and more institutional confidence.

? Stablecoin Expansion, CBDC Ban: USD-backed stablecoins get the green light, but Central Bank Digital Currencies (CBDCs) are officially off the table due to privacy concerns. This is a direct play to maintain the U.S. dollar’s dominance without giving the government total control over personal finances.

? Establishment of a Presidential Working Group on Digital Asset Markets:?This group, led by?David Sacks, will develop a federal regulatory framework for digital assets and explore the potential for a national digital asset stockpile.

? Fair Banking Access for Crypto Firms: The executive order mandates that crypto businesses should have the same banking rights as traditional finance companies—no more being cut off from the system.

? Tech-Neutral Regulations: Instead of trying to fit crypto into old frameworks, the order calls for regulations that focus on functionality rather than specific technologies. This means clearer rules and fewer arbitrary crackdowns.

? Pardon of Ross Ulbricht: Trump fulfilled a campaign promise by pardoning Ross Ulbricht, the founder of the Silk Road marketplace, a move that signals support for the libertarian movement in crypto.

The Biden-era anti-crypto policies are gone. Instead, agencies now have deadlines to propose pro-innovation reforms:

• February 22, 2025: Reports on outdated crypto regulations.
• March 24, 2025: Proposed rule rollbacks.
• July 22, 2025: A full legislative proposal to Congress.

The message? This administration wants a real regulatory framework—not just enforcement-by-lawsuit.

Trump moves, SEC follows.

The SEC has moved swiftly to align with the new agenda.

Crypto 2.0 Task Force: This new team, led by Commissioner Hester Peirce, is crafting a fairer approach to regulating digital assets. Expect a shift away from overreach and towards a clearer path for crypto startups and institutional players alike.

Rescinding SAB 121: The SEC is rolling back a rule that forced crypto custodians to double-report assets. This reduces friction for banks and institutions handling crypto custody.

U.S. Crypto Stockpile? The government is considering a national digital asset reserve—potentially holding BTC, ETH, and stablecoins. If this happens, it would be one of the most bullish signals in crypto history.

Digital Asset Innovation Incentive Program: Tax breaks and R&D subsidies are now being offered to attract blockchain companies to the U.S., leading to a surge in company registrations.

Freezing of Enforcement Actions: The SEC, under the new administration, is considering halting enforcement actions against crypto firms, particularly those not involving fraud.

What does it all mean?

Institutional Adoption and Road to DeFi

The repeal of stringent DeFi regulations from the Biden era, combined with the ban on CBDCs, is seen as a "game-changer" for institutional crypto adoption, potentially attracting large investors by providing a clearer regulatory framework.

Trump’s World Liberty Finance is the obvious beneficiary, but with that, other DeFi projects and related infrastructure, mainly Aave and Chainlink.

A side note:?Mr. Trump is still bullish on ETH, BTC, and DeFi. Track World Liberty Portfolio here and here.

We increased our exposure in both, plus adding Ondo as the world’s largest asset manager, Blackrock, is heavily pushing the SEC to clear the space for the tokenization of real-world assets, such as bonds and equities on the blockchain.

Bringing assets “on-chain” is a significant shift in traditional finance and would significantly shape the landscape toward blockchain and cryptocurrencies.

Making crypto US based.

The "Digital Asset Innovation Incentive Program" offers tax breaks and R&D subsidies to attract blockchain companies to the U.S., resulting in a surge in company registrations.

Combined with clear regulation, companies and investors are coming back to the United States to enjoy a simple, pro-crypto environment.

Overall, these executive orders and policy changes reflect a significant shift in the U.S. approach to cryptocurrency regulation, aiming to position the country as a leader in digital finance while balancing innovation with consumer protection.

Market Sentiment and Speculation

There are short-term setbacks driven by the tariff wars and other negotiations. However, this is the most bullish regulatory shift in crypto history.

We are closely monitoring macro indicators signaling a further shift in liquidity, possibly igniting the altcoin season.

#Staysafe.

Regards,

Matt Curda

LinkedIn | Twitter

Web | Investment Fund

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