Trump's encryption stance takes a big turn: from openly calling it an "eyewash" to becoming the "pro-encryption president"

Former U.S. President Donald Trump was once skeptical about digital assets, calling Bitcoin "like an eyewash" and its value "based on air." However, since returning to the White House in January this year, Trump has signed executive orders supporting the industry and expanding government use of digital assets, as well as signing a law that legalizes stablecoins. Trump's business empire and that of his family have also almost expanded into every corner of the encryption world.

Trump's Transformation: From Words to Actions

In recent years, Trump's attitude towards cryptocurrency has shifted noticeably. He has released four series of non-fungible tokens (NFTs) and promised to become a "pro-Bitcoin president" during his 2024 campaign. He stated that he aims to make the United States the "cryptocurrency capital of the world and a Bitcoin superpower" and emphasized that cryptocurrency is "crucial to America's future competitiveness."

The encryption community supported his campaign with huge sums of money. The world's richest man, Elon Musk, donated $239 million to the political action committee America PAC that supports Trump. Venture capitalists Marc Andreessen and Ben Horowitz donated $2.5 million to Right for America. The Winklevoss twins also donated millions to his campaign. In August, they donated $21 million worth of Bitcoin to the Digital Freedom Fund PAC to help Trump advance his pro-digital asset agenda.

Trump family's encryption business landscape

Trump and some of his family members are promoting and benefiting from the encryption project World Liberty Financial. The project has issued its own stablecoin USD1 and governance token WLFI. As of September 4, the market capitalization of WLFI is 4.5 billion dollars. In addition, companies associated with the Trump family also hold 22.5 billion WLFI, worth about 4 billion dollars.

The Trump family has also ventured into a Bitcoin mining business called American Bitcoin, cryptocurrency exchange-traded funds (ETFs), and even a cryptocurrency treasury company named ALT5 Sigma. Just days before his inauguration in January, Trump promoted a meme coin called TRUMP and attended a TRUMP holders' dinner in May.

Trump's Significant Impact on the Encryption Market

Trump's presidency and the pro-encryption legislation he promoted are encouraging mainstream financial institutions to abandon their concerns about volatile digital tokens and consider them as an alternative investment category.

Improved regulatory environment: He appointed heads of government agencies that are friendly to the industry, and the new SEC Chairman Paul Atkins has clearly expressed support for cryptocurrencies. Many of the enforcement actions taken against companies like Binance and Coinbase by the SEC Chairman Gary Gensler under the Joe Biden administration have been rejected under the Trump administration.

Fund inflow: Under his supervision, more than 100 "digital asset treasury companies" have been established to purchase and hold digital currencies on their balance sheets. Since the beginning of this year, funds flowing into U.S. Bitcoin ETFs have reached approximately $19 billion.

Government Cooperation: Trump has appointed venture capitalist David Sacks as the new artificial intelligence and encryption czar. He signed an executive order requiring the government to retain rather than sell Bitcoin seized by law enforcement, using it as the basis for a "strategic Bitcoin reserve." The Department of Commerce has also recently begun distributing GDP data on a public blockchain.

Legislative Progress: The "Genius Act" signed by Trump in July encourages the use of stablecoins for everyday payments. The next agenda is the "Clarity Act" which is being promoted in Congress, and this act will provide clearer regulations for cryptocurrencies other than Bitcoin and Ethereum.

Conclusion

Donald Trump's transformation from a cryptocurrency skeptic to a staunch advocate marks a significant turning point in the history of cryptocurrency development. His pro-crypto policies have not only created a more favorable regulatory environment for the industry but also attracted a substantial influx of institutional capital, effectively promoting the integration of digital assets into the mainstream financial system. This series of initiatives indicates that cryptocurrency is no longer a fringe topic but has become a core component of the political and economic agenda in the United States. As the Trump administration continues to advance its crypto agenda, the U.S. is expected to maintain its global leadership position in this field.