4E Labs | The Cryptocurrency Revolution in the Trump 2.0 Era: Policy Changes, Global Landscape, and Personal Opportunities

In January 2025, Donald Trump was sworn in for his second term as President of the United States, immediately launching a financial policy revolution that shocked the world. In stark contrast to his skeptical attitude towards cryptocurrency during his first term, the Trump 2.0 administration unleashed a series of policies such as "Strategic Bitcoin Reserves," "Crypto Czar," and "Stablecoin Federal Legislation," completely reversing the U.S. stance on digital assets. This historic shift not only triggered a frenzied market surge, with Bitcoin prices skyrocketing to $106,000 in a single day, but also profoundly impacted the wallets of ordinary people, corporate strategic layouts, and the global redistribution of financial power.

The European Central Bank warned that this was "planting the seeds of financial instability for the future," while pioneers like El Salvador began adjusting their national Bitcoin strategies. In this transformation, how can investors avoid becoming victims of policy experiments? How will ordinary people's payment habits be reshaped? This article reveals the strategic games and real-world impacts behind Trump's new crypto policies through market data and authoritative analysis.

I. Policy Blitzkrieg: From "Bitcoin is a Scam" to National Strategic Reserves

(Core Data: 200,000 Bitcoins included in the U.S. permanent reserves, accounting for 6% of circulation)

1.1 Trump's "Crypto Awakening" Journey

The Trump administration's attitude towards cryptocurrency underwent a dramatic transformation. During his first term (2017-2021), Trump publicly criticized Bitcoin as a "scam," claiming that cryptocurrencies were "highly unstable and without basis," and supported the SEC's crackdown on initial coin offerings (ICOs). However, starting in 2022, Trump's attitude began to shift subtly. In December of that year, he launched the "Trump Digital Trading Card" NFT series, which sold out within 24 hours and generated approximately $4.5 million in revenue, allowing him to experience the potential of the crypto economy firsthand. By the 2024 campaign period, Trump had fully embraced the crypto industry, not only accepting cryptocurrency donations but also promising to classify Bitcoin as a strategic reserve asset for the U.S. at the "Bitcoin 2024 Conference," vowing to make America the "global cryptocurrency capital."

1.2 Seven Key Policies

1. Regulatory Framework Restructuring (January 21, 2025)
   (1) The SEC established a crypto asset working group led by crypto-supportive commissioner Hester Peirce, focusing on developing standards for distinguishing between securities and non-securities tokens and a differentiated disclosure system.
   (2) A "Crypto Czar" position was created, with former PayPal COO David Sacks appointed to coordinate federal-level crypto policies.
2. Accounting Standards Relaxation (January 23)
   The SEC repealed SAB 121, which had previously required companies to classify custodial crypto assets as liabilities, hindering traditional financial institutions from entering the crypto custody market.
3. Law Enforcement Policy Adjustment (Q1 2025)
   The SEC dropped its lawsuit against Coinbase and terminated its investigation into OpenSea, signaling a relaxation of regulatory scrutiny.
4. Digital Asset Executive Order (January 23)
   (1) Support for blockchain development, establishing a "Presidential Digital Asset Working Group" to promote open public blockchain access.
   (2) Encouragement of dollar-pegged stablecoins while prohibiting the U.S. government from promoting CBDCs.
5. Strategic Bitcoin Reserves (March 6)
   (1) The Treasury incorporated 200,000 BTC (6% of circulation) into a "permanently non-saleable" reserve, sourced from judicially seized assets to avoid fiscal expenditure disputes.
   (2) Policy Impact: Reduces market circulation, strengthens Bitcoin's "digital gold" attributes, and establishes the U.S.'s competitive advantage in the digital currency arena.
6. Passage of the GENIUS Stablecoin Act (May 20)
   (1) The first federal regulatory framework for stablecoins in the U.S., adopting a "federal charter + state-level license" dual system.
   (2) Core Requirements:

• Issuers must maintain 100% dollar reserves and connect to real-time auditing systems.
• Only licensed entities can issue stablecoins, with reserve assets limited to dollars, U.S. Treasuries, and other high-liquidity assets.
  (3) Market Impact: Growth in compliant stablecoins like USDC, while USDT's growth rate slows due to regulatory scrutiny.

1. Opening Up Banking Crypto Operations (March 7)
   The OCC clarified that banks are allowed to engage in crypto custody, stablecoins, and blockchain networks, eliminating prior approval requirements and lowering compliance barriers for financial institutions.

1.3 The Geopolitical Codes Hidden in Policies

Analysts point out that Trump's crypto policies are not merely economic decisions but part of a systematic layout with multiple strategic goals:

1. Consolidating Digital Financial Hegemony

• In the face of global CBDC (Central Bank Digital Currency) developments, the U.S. chose to support cryptocurrencies rather than CBDCs to maintain the dollar's dominance in the digital age.
• Treasury Secretary Yellen criticized the previous administration for "stifling the industry with enforcement regulation," emphasizing the current government's full support for digital assets.

1. Stimulating Economic Growth

• The crypto industry is viewed as a new growth engine that can attract capital and create high-paying jobs.
• Trump's team estimates that friendly policies could bring trillions of dollars in blockchain economic value.

1. Addressing Dollar Credibility Crisis

• Amid the global trend of "de-dollarization," crypto assets (like Bitcoin reserves) may become a "financial backup plan," helping to maintain capital trust.

1. Political Interest Considerations

• The crypto industry provides Trump with funding and support from young voters in the 2024 election, with the new policies partly serving as a return favor to allies.
• By embracing crypto innovation, Trump shapes an image as a "technology promoter," contrasting with traditional politicians.

II. Market Roller Coaster: Some Celebrate, Many Lose Everything

(Key Case: 813,000 investors lost $2 billion due to "TRUMP Coin")

2.1 The Frenzied Game Under Policy Markets

Different categories of crypto assets reacted significantly differently to policy changes:

1. Bitcoin
   As the focal point of policy and the core asset of the "digital gold" narrative, Bitcoin's overall performance remained relatively stable. From Trump's election to March 2025, Bitcoin's price increased by approximately 50%, despite significant volatility during that period. Analysts generally believe that Bitcoin, as the most likely crypto asset to be included in national reserves, has strengthened its position as a long-term store of value.
2. Ethereum
   Ethereum emerged as an unexpected winner from the policy shift. Trump's executive order on January 23 expanded the national reserve goals from Bitcoin to the entire digital asset space, which was a significant boon for Ethereum. The market noted that the U.S. government held 53,900 ETH, and the Trump family's WLFI had recently made multiple purchases of ETH, bringing its portfolio's holding ratio to 72%. These signs were interpreted as Ethereum potentially becoming the second crypto asset to be included in national reserves after Bitcoin.
3. Meme Coins
   Meme coins received a regulatory "green light." On February 27, 2025, SEC staff clarified that meme coins typically do not constitute "securities" under U.S. federal securities law, and participants in their issuance and sale do not need to register with the SEC. This decision sparked a frenzy in the meme coin market, with Trump's own "TRUMP Coin" soaring 73% to $46.06 during Asian trading hours, reaching a market cap of approximately $9.2 billion and a 24-hour trading volume of $42.2 billion. However, an assessment commissioned by The New York Times and conducted by Chainanalysis revealed that over 813,000 investors suffered heavy losses after purchasing "Trump Coin," with total losses reaching $2 billion, while the Trump Group and its partners earned $100 million in transaction fees.
4. Stablecoins
   Benefited from the advancement of the GENIUS Act. As the bill gained bipartisan support in the Senate, the compliance outlook for major stablecoin issuers like Tether and Circle improved, with market expectations that stablecoins would be more widely integrated into the traditional financial system. Analysts predict that the backing requirements for stablecoins could create "trillions of dollars" in demand for U.S. Treasuries, as issuers need to hold high-quality liquid assets as reserves.

Table: Comparison of the Impact of Trump's New Crypto Policies on Different Crypto Asset Categories

2.2 Ripple Effects in Traditional Financial Markets

The volatility in the crypto market quickly transmitted to traditional financial markets, forming a complex interactive relationship:

• U.S. Tech Stocks: The stock prices of crypto-related companies showed a mixed performance. On one hand, compliant exchanges like Coinbase benefited from the improved regulatory environment; on the other hand, companies overly reliant on crypto operations faced revaluation. Tesla's stock price fell by 32.87% due to Musk's excessive involvement in international politics and "brash" actions in the DOGE sector, while Trump Media & Technology Group (DJT) dropped by 34.75%.
• Gold Market: As a traditional safe-haven asset, gold prices steadily rose amid increasing uncertainty regarding crypto policies, showing significant gains in early 2025, reflecting some investors' concerns about cryptocurrencies replacing gold.
• Foreign Exchange Market: The dollar index rose by 4% after Trump's election, reaching a 26-month high near 110.17. Analysts believe that the new crypto policies have reinforced the dollar's status as the global reserve currency, as most stablecoins are still pegged to the dollar.

2.3 Regulatory Arbitrage and Geographical Migration

Trump's new crypto policies are reshaping the geographical distribution of global crypto enterprises:

1. Increased Attractiveness of the U.S.: Crypto companies that migrated overseas during the Biden administration are beginning to consider returning to the U.S. market. Coinbase's VP of Policy, Kara Calvert, stated, "Trump has signaled that America is back, and we are ready to lead this industry."
2. Intensified Regulatory Competition: Traditional crypto-friendly jurisdictions like Singapore and Switzerland are under pressure and may be forced to adjust their policies to maintain competitiveness. The EU has adopted a more cautious stance under the MiCA framework for crypto asset market regulation, forming a different regulatory path from the U.S.
3. Miner Relocation: The U.S.'s low energy costs and increasingly clear regulatory environment are attracting Bitcoin miners from East Asia and Central Asia, further consolidating the U.S.'s dominant position in Bitcoin network hash power.

III. The World is Splitting: Europe Accelerates CBDC, China Strengthens Digital Yuan

3.1 Dollar Hegemony: Strengthened or Weakened?

There are starkly different interpretations in academia and policy circles regarding the impact of the new crypto policies on the global status of the dollar:

• Strengthening Argument suggests that cryptocurrencies, especially dollar-pegged stablecoins, will become new tools for expanding the dollar's influence. U.S. media outlets like "Political News" have pointed out that providing stablecoins to countries and regions with high inflation and a need for dollars can further enhance the dollar's influence, representing a "flexible use of American soft power." Treasury Secretary Yellen emphasized that the Trump administration's "full commitment to Bitcoin and cryptocurrencies" will solidify the U.S.'s leadership in the global financial system.
• Weakening Argument warns that cryptocurrencies may undermine dollar hegemony. Some analysts believe that if Bitcoin is widely accepted as a global reserve currency, it could weaken the dollar's position as the world's primary reserve currency. Additionally, cryptocurrencies can bypass traditional U.S. financial sanctions, which would also strike a blow to dollar hegemony. History shows that when a national credit system begins to crumble, capital will spontaneously seek new circulation methods—evident during the U.S.-Japan trade friction in the 1980s, when Japan's black market economy and offshore dollar transactions surged.

3.2 Restructuring the Global Regulatory Landscape

Trump's new crypto policies are forcing other major economies to reassess their digital asset strategies:

1. The EU chooses to part ways with the U.S., continuing to advance its CBDC plans while adopting a more cautious regulatory stance on crypto assets. The ECB has initiated a two-phase plan for CBDC infrastructure development, clearly distinguishing itself from the U.S.'s "crypto-first" approach.
2. China accelerates the digital yuan pilot while maintaining strict bans on cryptocurrencies. Former PBOC Governor Zhou Xiaochuan recently stated that the U.S. shift in crypto policy may increase vulnerabilities in the global financial system, reinforcing the necessity for China to develop controllable digital currencies.
3. Emerging Markets Show Divergent Reactions: While El Salvador adopted Bitcoin as legal tender back in 2021, recent polls show that about 92% of the population has not used Bitcoin, and the government has relaxed mandatory acceptance of Bitcoin due to pressure from the IMF. In contrast, financial centers like Singapore and the UAE are attempting to find a balance between innovation and stability, potentially adjusting policies to maintain competitiveness.

3.3 New Challenges to Financial Stability

Historical experience indicates that financial innovation often comes hand in hand with financial risks. Trump's new crypto policies may introduce new sources of systemic risk:

1. Increased Interconnection Between Crypto Markets and Traditional Finance: With banks permitted to engage in crypto asset custody and other operations, the previously relatively isolated markets will form channels for risk transmission. During periods of stress, volatility in the crypto market could trigger broader financial instability.
2. Regulatory Arbitrage and Shadow Banking Risks: A relaxed regulatory environment may lead to risk activities shifting to the less-regulated crypto space, potentially recreating the pre-2008 financial crisis scenario of shadow banking system expansion. Sixteen Nobel laureates in economics have warned that Trump's fiscal policies could trigger inflation and lead to global economic instability.
3. Obstruction of Monetary Policy Transmission Mechanisms: If cryptocurrencies are widely adopted, central banks' ability to influence the economy through interest rate adjustments may be weakened, especially in small economies with open capital accounts. MIT research predicts that if 20% of transactions switch to stablecoins, the effectiveness of the Federal Reserve's interest rate policies could weaken by 40%.

IV. Survival Guide: How Ordinary People Can Avoid Being Left Behind by the Times

The cryptocurrency policies of the Trump 2.0 era are reshaping the financial landscape, bringing unprecedented opportunities and risks for ordinary people. This transformation not only affects investors' asset allocation strategies but may also change daily payment, savings, and wealth inheritance methods. Here are specific recommendations for different groups:

4.1 Investors: Stay Rational Amid the Frenzy

• Reassess Risk Tolerance: The volatility of crypto assets far exceeds that of traditional assets. The $1 billion liquidation event in March 2025 indicates that leveraged operations can quickly consume principal. It is advisable to limit crypto asset allocation to 5-15% of investable assets.
• Focus on Infrastructure Rather Than Speculative Assets: Base layer protocol tokens like Bitcoin and Ethereum have gained long-term value support due to their inclusion in national reserves, making them more sustainable compared to meme coins (like the $2 billion loss suffered by 813,000 investors in TRUMP Coin).
• Participate Through Compliant Channels: With clearer regulation for platforms like Coinbase, prioritize choosing SEC-regulated spot ETFs (like BlackRock's IBIT) over offshore exchanges to reduce fraud risks.

4.2 Consumers: Digital Transformation of Payment Habits

• Daily Use of Stablecoins: Compliant stablecoins (like USDC) under the GENIUS Act may become new options for cross-border payments, with fees 80% lower than traditional remittances, but ensure that service providers hold 100% reserves.
• Beware of "Crypto Inflation" Traps: Some merchants may impose an additional 3-5% fee under the guise of crypto payments, with actual costs potentially exceeding credit card fees. It is advisable to use fiat currency pricing as a benchmark when comparing costs.

4.3 Entrepreneurs: Capturing Policy Dividends and Avoiding Risks

• Web3 Startup Window: After the OCC allowed banks to engage in crypto operations, there is a surge in demand for compliant DeFi middleware and institutional-grade custody solutions. However, be aware that the SEC's enforcement focus on "unregistered securities issuance" remains.
• Geographical Compliance Strategy: Even with relaxed U.S. policies, global market outreach must comply with regional regulations like MiCA. It is advisable to adopt a "subject separation" structure (e.g., U.S. entities handling compliant operations while offshore entities undertake high-risk innovations).

4.4 Wage Earners: New Directions for Career Development

• Skill Upgrade Pathways: The median annual salary for blockchain engineers has reached $178,000 (2025 Robert Half data), with a 300% increase in demand for learning Solidity and other smart contract languages. However, it is essential to distinguish between core development and speculative concept projects.
• Pension Allocation Adjustments: Some 401(k) plans are beginning to offer exposure to crypto assets like Grayscale's ETHE, but the Labor Department warns that such assets "do not meet prudent investor rules," suggesting that traditional assets should remain the primary focus.

4.5 Policy Observers: Understanding Macro Trends

• The Symbiotic Relationship Between the Dollar and Bitcoin: While the U.S. strategic reserves may elevate Bitcoin's status, dollar-pegged stablecoins (which account for 75% of global trading volume) actually reinforce dollar hegemony, indicating that the two are not a zero-sum game.
• Anticipating Regulatory Cycles: The current relaxed environment may change with the mid-term elections in 2026. SEC Commissioner Peirce's term ends in August 2025, and her successor's stance will impact policy continuity.

4.6 Essential Risk Prevention Measures

• Tax Compliance: The IRS has listed cryptocurrency as a key audit focus for 2025. Use tools like CoinTracker to maintain complete records of transaction histories, paying special attention to tax obligations related to forks and airdrops.
• Security Practices: The period of relaxed policies has seen a 300% increase in phishing attacks (Chainalysis data). Store large assets in hardware wallets, leaving only small amounts on exchanges.
• Intergenerational Communication: Young family members' crypto investments may raise inheritance planning issues; clarify digital asset inheritance terms (such as private key custody arrangements) in legal documents.

Table: Risk-Return Matrix for Ordinary People Participating in the Crypto Economy

Historical experience shows that each technological-financial revolution creates new wealthy classes while imposing heavy costs on the imprudent. After the collapse of the internet bubble in the 1990s, the entities that retained real value were infrastructure providers like Amazon, not speculative concepts like Pets.com. In the crypto space, ordinary people should focus on: (1) the value accumulation of underlying blockchain protocols; (2) the practical functions of compliant stablecoins; (3) tokenized applications that integrate with the real economy. Avoid falling into the "get-rich-quick" illusion to achieve steady wealth growth in this round of transformation.