The US is becoming a global hub for cryptocurrencies after Trump came to power 

• The US crypto landscape is shifting toward regulatory clarity and friendlier policies under pro-crypto President Donald Trump.
• Key initiatives include the GENIUS Act, Strategic Bitcoin Reserve, Trump-baked World Liberty Financial and appointments of pro-crypto regulators.
• FXStreet interviews experts to shed light on how these developments could position the US as a leading global crypto hub.

The US is positioning itself as a potential global hub for cryptocurrencies under President Donald Trump. The rise of the US as a crypto powerhouse narrative comes amid the initiatives taken by Trump’s administration, such as the GENIUS Act, the Strategic Bitcoin Reserve, and the launch of Trump-backed ventures, as well as pro-crypto regulatory appointments, which reflect a policy shift aimed at boosting adoption and market confidence. To gain more insights into these developments, FXStreet interviewed experts on this matter.

Trump's presidential victory pushes a pro-crypto policy

The victory of the crypto-friendly candidate Donald Trump in the US presidential election in 2024 marked the first significant push for cryptocurrency in the US. Bitcoin surged to a record high of $76,400 on November 6, the day after the US Presidential election, breaking above its previous high of $73,777 back in March 2024, and crypto-linked stocks such as Coinbase and Strategy followed the rise.

During his election campaign, Trump promised to set the stage for a dramatic shift in US crypto policy, unlike the Biden administration’s crackdown on the industry, which had over 100 US Securities and Exchange Commission (SEC) enforcement actions against crypto firms.

The positive crypto development started with the US SEC Chair, Gary Gensler, who announced on November 21 his resignation as Chair of the agency, effective on January 20, President Trump’s inauguration day. This news had a positive impact on the crypto markets, as Gensler had previously taken an unfavorable stance on digital asset policies.

CryptoQuant's chart below shows that the monthly percentage growth of Bitcoin holdings among large investors accelerated from -0.25% on January 14 to +2% on January 17, marking the highest monthly rate since mid-December. This rise in demand pushed BTC to set a new record high of $109,588 on Trump’s inauguration day on January 20.

December 2024: Key Appointments Signal Pro-Crypto Stance

Trump's personal investment and interest in digital assets

The Trump family launched the World Liberty Financial (WLFI), a DeFi project built on the Ethereum blockchain and endorsed by his sons (Donald Jr., Eric, and Barron) in September 2024. However, the venture has faced criticism for potential conflicts of interest, but the crypto enthusiasts view this as a signal of Trump’s support for digital currencies, boosting market optimism.

So far, the WLFI tokens have been bought by many renowned people and corporations in the cryptospace, such as Justin Sun, Founder of Tron, Aqua 1 Foundation, UAE-based venture capital, ALT5 Sigma Corporation and many others.

Arkham data shows that WLFI currently holds $460.42 million worth of tokens comprising Ethereum (ETH), Aave (AAVE), Chainlink (LINK) and others. The DeFi project has also launched its own stablecoin USD1, which is backed 1:1 with the US Dollar. 

Trump’s interest in digital assets continues to grow as his Trump Media and Technology Group (DJT) company has filed for a Bitcoin ETF with the US SEC.

WLFI holdings chart. Source: Arkham

Apart from the DeFi venture, Trump also launched a meme coin, Official Trump (TRUMP), which reached a market capitalization of $8.79 billion back in January and has generated millions in trading fees and dollar-tied crypto for Trump-linked entities. However, this meme coin has been criticized for offering little investment value, and its currency market capitalization stands at $1.62 billion.

Formation of the SEC’s crypto task force

The US SEC acting Chairman, Mark Uyeda, launched a crypto task force led by Commissioner Hester Peirce to provide a comprehensive regulatory framework for digital assets, a first step towards a clearer regulatory process for the crypto industry.

This was followed by President Trump signing an Executive Order (EO) to support crypto and promote US leadership in digital assets. It also aims to create a strategic national digital asset stockpile for the US. The executive order also prohibits any action towards creating and promoting a Central Bank Digital Currency (CBDC) and reverses the previous Biden administration's order 14067 on digital assets. The order emphasized open access to blockchain networks and protection for dollar-backed stablecoins, setting a tone of innovation over restriction.

The first-ever White House Crypto Summit

The first-ever White House Crypto Summit took place in March and discussed regulation and innovation in the cryptocurrency sector. This Summit marks a significant milestone in US digital asset policy, underscoring the government's supportive stance on crypto and its commitment to establishing clear regulations, as promised by President Trump during his campaign.

Moreover, Trump signed an executive order to create a Strategic Bitcoin Reserve (SBR) using BTC from "criminal or civil assets forfeiture proceedings" without deploying fresh capital and utilizing 207,189 BTC and other cryptocurrencies seized in criminal proceedings.

This development is designed to centralize and manage federal crypto holdings, aims to prevent losses from premature sales and position the US as a leader in digital asset ownership.

Apart from this, the US is actively combating crypto-confidence scams and collaborating with law enforcement nationwide to seize and forfeit stolen funds, while also proactively safeguarding investors' funds. The US Department of Justice (DOJ) announced the largest cryptocurrency seizure in its history, targeting more than $225 million tied to crypto fraud. The FBI’s Internet Crime Complaint Center reported that cryptocurrency investment fraud caused more than $5.8 billion in losses in 2024 alone.

US States Bitcoin reserve race 

Apart from Trump’s administration working on its Strategic Bitcoin Reserve, many US states joined the race for their own Bitcoin reserves, as shown in the chart below.  

New Hampshire Governor Kelly Ayotte signed House Bill 302 (HB 302) into law, making the state the first in the US to establish a Strategic Bitcoin Reserve. The law allows the state treasurer to invest up to 5% of public funds in precious metals or digital assets that have a market cap of over $500 billion, with BTC only meeting this condition. While the bill does not specifically mandate the creation of such a reserve, it gives the state’s treasurer discretion to invest in one.

Arizona Governor Katie Hobbs also signed House Bill 2749 (HB 2749) into law, which allows the state to claim ownership of unclaimed digital assets, including cryptocurrency, abandoned for at least three years. The law also enables the creation of a Bitcoin and Digital Asset Reserve Fund, which will accumulate value from staking rewards and airdrops of these assets, without using taxpayer funds.

Following these announcements, Texas launched a state-funded Bitcoin reserve, becoming the first US state to do so independently in late June. This marks the first state in the US to authorize a publicly funded, standalone reserve managed outside the state treasury. Governor Greg Abbott approved Senate Bill 21 (SB 21), enabling the Texas Comptroller to manage the fund to allow qualified third parties to manage the reserve and requires crypto purchases, with funds appropriated by the legislature or from reserve revenues, to be invested in digital assets, like the New Hampshire law.

Similar bills are pending in other state legislatures, including Massachusetts, Michigan, North Carolina and Ohio, highlighting the growing crypto adoption in the US.

Stablecoin regulations: The GENIUS Act

Donald Trump signed the GENIUS Act into law in mid-July. This establishes a clear federal regulatory framework for stablecoins and their issuers in the US, mandating full reserves backed by the US Dollar (USD) and clear anti-money laundering (AML) guidance. 

Deutsche Bank Research reported that this landmark bill positions the US as the frontrunner on stablecoins, paving the way for other countries to review their own stablecoin regulations (or lack thereof). 

“It is a significant milestone for the crypto industry, both in the US and globally,” reported Deutsche Bank analysts.

The report also highlighted that the passage of the GENIUS ACT into law will solidify the US Dollar's dominance, with USD-denominated stablecoins representing over 99% of the total stablecoin market capitalization. The GENIUS Act formalizes stablecoin issuers' role as quasi-money market funds, supporting US short-term debt markets and channeling non-USD liquidity into the US dollar. 

The US Treasury predicts that T-bills held by stablecoin issuers (excluding interest-bearing stablecoins) will grow to approximately $1 trillion by 2028. Tether alone holds over $120 billion in Treasury bills as of Q1 2025, as shown in the graph below, and ranks among the top holders of US Treasuries.

Major foreign holders of US Treasuries, billions (2025) chart. Source: Deutsche Bank Research

Additionally, under the GENIUS Act, competition between traditional banks, stablecoin issuers and corporations is incentivizing players to join the rapidly growing space and expand stablecoins beyond crypto trading. 

Corporations in retail (Walmart, Amazon, Airbnb) and payments (PayPal, Shopify) are racing to capitalize on stablecoins' advantages in lower remittance costs, 24/7 availability, faster

settlement time, and fewer barriers than those required by traditional bank accounts

for transactions. US Treasury Secretary Scott Bessent predicts the stablecoin market will grow from its current $268 billion to over $2 trillion over the next few years.

US SEC green lights in-kind creations and redemptions for Bitcoin and Ethereum ETPs

The US SEC has voted and approved orders to permit in-kind creations and redemptions by authorized participants for crypto Exchange Traded Products (ETPs) shares, highlighting growing regulation clarity in cryptocurrencies by the US.

This order is a departure from the previous cash-only mechanism used for spot BTC and ETH ETPs, which were limited to creations and redemptions on an in-cash basis. This new development allows investors to receive the underlying asset, which is considered more efficient, as it enables the fund’s authorized participants to avoid selling the assets on the market, potentially reducing transaction costs. Moreover, it aligns crypto ETPs with traditional commodity-based ETPs, such as Gold and Oil.

Apart from this development, the Commission also approved other orders that advance a merit-neutral approach to crypto-based products, including exchange applications seeking to list and trade an ETP that would hold mixed spot Bitcoin and spot Ether, options on certain spot Bitcoin ETPs, Flexible Exchange (FLEX) options on shares of certain BTC-based ETPs, and an increase of position limits up to the generic limits for options (up to 250,000 contracts) for listed options on certain BTC ETPs.

Crypto in retirement plans

President Trump signed an executive order that opened the door to $9 trillion to $12.5 trillion in 401(k) retirement funds, allowing investments in cryptocurrency, private equity, and real estate.

Critics have faulted the move, saying that it would create instability in retirement accounts while the details of the directive remain under wraps. 

The order would allow for the provision of digital assets, precious metals such as Gold, and private loans in retirement plans to serve as alternatives to the traditional portfolio of Stocks and Bonds.

Treasury Secretary Scott Bessent said in August, “We’re going big on digital assets,” underscoring the administration’s commitment, further boosting market confidence.

Growing US-based institutional investors 

On the institutional side, the US is the top among the countries by number of entities, with over 3.68 million in BTC treasuries and 300 companies (public and private), surpassing countries like Canada and the United Kingdom, as shown in the chart below.

Among the US-based corporate companies, Michael Saylor’s Strategy, formerly MicroStrategy, currently holds 629,376 BTC, followed by MARA Holding with 50,639 BTC, according to BitcionTreasuried.Net data.

Apart from US companies and the government increasing their BTC holdings. CoinGecko data below shows that the list of public companies holding Ethereum is also rising. The eleven companies tracked by CoinGecko hold 2.3% of the Ether supply, and over 2.78 million. 10 out of 11 companies are from the US and have accumulated more Ethereum tokens, even as retail investors continue to take profits, in the last thirty days.

Experts comments 

Fei Chen, Founder & CEO of Intellectia AI

Q: How much impact do you think the SEC’s new Crypto 2.0 Task Force, led by Commissioner Hester Peirce, could actually have in shaping fair regulations that both protect investors and encourage innovation in the US?

The Crypto Task Force could be a real game-changer for the crypto market. With clear rules, we could see an explosion of new financial products that could help regular people invest better. For example, the Task Force could finally clarify when a crypto token is a security versus a commodity. This matters because securities have stricter rules. If Bitcoin and Ethereum are commodities but smaller tokens are securities, investors know exactly what protections they have. No more guessing games. I think the biggest impact would be on staking rewards. Staking is when you lock up your crypto to help run a blockchain network, and you earn rewards for doing this. Right now, big US companies like PayPal or Robinhood are nervous about offering staking to their customers. Why? Because the SEC hasn't clearly said whether staking rewards count as securities. If they are securities, companies need expensive licenses and face tons of rules. If the Task Force creates clear rules saying staking is okay, then every major US platform might start offering it. They need to find that sweet spot. We need rules to stop scams and protect people's money, but it shouldn’t make it harder for honest companies to operate.”

Q: What hurdles do you see ahead, especially considering the Trump administration’s deregulatory leanings?

The administration needs to prove it can catch criminals while still letting legitimate businesses thrive. It will be difficult to gain people’s trust in the new policies. When people hear "deregulation," they remember disasters like how FTX's Sam Bankman-Fried used customer money to trade risky bets, or how Celsius promised safe returns but was actually gambling with deposits. Without strong rules, what stops the next crisis from happening? The trust problem gets worse when crypto collapses happen. In traditional banking, if your bank fails, FDIC insurance protects your savings. In crypto, when a platform goes down, your money is usually gone forever. People saw this with Mt. Gox, QuadrigaCX, FTX, Celsius, and the list keeps growing.

Q: With crypto-related illicit activities on the rise in 2024, how should the Trump administration strike a balance between its pro-crypto agenda, such as the Strategic Bitcoin Reserve, and lighter enforcement?

The Strategic Bitcoin Reserve is a smart move because it shows the government takes crypto seriously as an asset class. But they need to pair it with strong enforcement against actual criminals. Go after the hackers, the money launderers, the scammers, but leave the legitimate businesses alone. Criminals use the internet, but we can’t shut down the whole thing. Instead, we develop tools to catch bad guys while letting everyone else benefit from the technology. Crypto needs the same approach.

Q: Trump’s direct involvement in crypto projects, such as World Liberty Financial and the $TRUMP meme coin, raises questions about America’s credibility as a global crypto hub.?

When any government official has direct financial interests in the industry they're regulating, it naturally raises questions about credibility. It all lies in the country’s regulatory framework and whether it appears neutral and merit-based. The global financial markets run on trust and perceived fairness. Whoever is in office, the regulatory framework must remain focused on market integrity and investor protection. That's how you build the kind of trust that attracts global crypto business.

Nicolai Sondergaard, Research Analyst at Nansen

Q: Could there be a conflict-of-interest concern, especially as rivals like Hong Kong and Singapore ramp up competition in stablecoin market dominance?

I don't think we will be seeing conflict-of-interest across countries and continents. There are already many different regulations across the world, such as how the EU is incredibly strict with MiCA. In the end we will have to wait and see which approach best ends up balancing innovation, flexibility and user protection.

Q: Trump’s direct involvement in crypto projects, such as World Liberty Financial and the $TRUMP meme coin, raises questions about America’s credibility as a global crypto hub.?

With regard to the question of Trump, I do not think one person disqualifies the rest of the country from being a potential global crypto hub. What will matter is if there is a network of builders, talent and support for the industry to flourish.