Trump’s Inauguration May Usher in Crypto Shake-Up with Day 1 Executive Order

As President-elect Donald Trump prepares to take office on January 20, reports suggest that his administration is considering significant changes to U.S. cryptocurrency regulations. According to sources cited by Decrypt, Trump may issue an executive order on his first day in office, targeting key areas of the crypto industry.

Potential Crypto Policy Shifts

The executive order could include the establishment of a new crypto council and the relaxation of certain banking restrictions by scaling back U.S. Securities and Exchange Commission (SEC) regulations affecting the sector. Subsequent orders might address broader regulatory frameworks, including a proposal to create a unified working group on digital assets involving the SEC and the Commodity Futures Trading Commission (CFTC).

Other anticipated actions include revising an SEC rule that has hindered the decentralized finance (DeFi) sector. This move could align with Trump’s reported financial interests in the industry through his DeFi project, World Liberty Financial. The administration might also incorporate global crypto innovation into the U.S. Secretary of State’s responsibilities, signaling a push for international leadership in digital asset technologies.

Broader Economic Policies and Crypto Impact

Beyond crypto-specific measures, Trump’s economic agenda—focused on stricter immigration controls and increased domestic energy production—could indirectly influence digital asset markets. Last year, he indicated plans to “close the border” and expand domestic drilling, policies that could affect broader market sentiment and capital flows.

Market Reaction and Expert Insights

Crypto markets remain in a consolidation phase as investors await clarity on Trump’s policies. “The financial markets are presently in a consolidation phase, awaiting clarity on the new U.S. administration’s initial actions and policy direction,” said Ruslan Lienkha, chief of markets at YouHodler. Lienkha predicts heightened volatility for altcoins such as Ethereum, Solana, and XRP, which are likely to mirror Bitcoin’s price movements with amplified swings.

In the near term, Lienkha expects a “neutral-to-negative flat market,” with limited net capital inflows or outflows, as uncertainty prevails. However, should Trump’s policies favor innovation and deregulation in the crypto sector, they could pave the way for increased adoption and investment.

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