The crypto market changes were made at Warp Speed in 2025. We have only been two months since Donald Trump’s second presidency. We have already seen the reduction in the security committee’s crypto surveillance capabilities and the creation of strategic Bitcoin. (Cryptography: BTC) A surge in administrative orders related to reservations and digital assets.
That’s just the beginning. It could come in the next 12 months. Here’s an overview of the three key developments to watch and what it means for your Crypto portfolio.
Let’s start with one development at the top of every bitcoin investor’s mind. This is the creation of the Strategic Bitcoin Reserve in March. As it is now, the US will consolidate 200,000 Bitcoin holdings into one centralized reserve. And unlike past administrations, they plan to not sell coins.
But there’s far more that the Trump White House can do. For example, the Trump team is opening up the possibility of finding a new budget-neutral strategy to buy more Bitcoin. The big idea here is that the government doesn’t use taxpayer funds to buy Bitcoin. Furthermore, the government will not increase the country’s debt by purchasing new Bitcoin.
So you need a little creativity to get things right. Already, many different ideas have been proposed — everything from reevaluating the certificates of gold held by the Federal Reserve to using some of the cost savings created by the government’s Department of Efficiency to opening new US government purchasing powers.
Of course, if that happens, it’s a huge development and almost certainly sends the price of Bitcoin rising. Under the Bitcoin Act of 2024, the government was to purchase 200,000 Bitcoin per year for a total of 1 million Bitcoin for the next five years. The scale of Bitcoin purchases is unprecedented.
The legendary Bitcoin Bull Michael Saylor, founder and executive chairman of Strategy (formerly Micro Strategy), recently lifted Antee. He now hopes that the US government will buy 25% of the circulating Bitcoin supply (approximately 5 million Bitcoin) by 2035.
Next, on everyone’s crypto wish list, is the establishment of comprehensive regulations for the US crypto industry in line with the Cryptocurrency Assets for the European Union (MICA) regulatory framework.
Currently, the US lacks a comprehensive regulatory framework for crypto, which has caused many market flaws. One leads to fraudsters, glyfters, and completely criminals doing things with codes that should not be legally impossible. After the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange in November 2022, industry leaders should do something to the government to protect the integrity of the crypto industry. However, it rarely happened under the Biden administration.
Furthermore, the lack of a clear regulatory framework leads to uncertainty in many markets. If there is a risk that the government could deem it illegal at some point in the future, why go to all the issues of creating a new product or service for its customers? This happened to major cryptocurrency exchanges in 2023 when the SEC decided to crack down on common cryptocurrency activities known as staking.
Image source: Getty Images.
There are currently several important laws awaiting the president’s signature at some point in 2025. Low-bending fruit is a genius act of 2025 and will help regulate the $200 billion Stablecoin market. As you probably guessed, “genius” is an acronym. It stands for “Guidelines and Establishment of National Innovation for US Stubcoin.” With Congressional approval pending, Trump is expected to sign this into law within the next two months.
Why stablecoins, you might ask? Now, the Trump White House now sees stubcoins as the key to continuing control of the US dollar. In the non-cryptic world, the dollar is the global reserve currency. Therefore, in the crypto world, as thought progresses, the dollar should also serve as the world’s reserve currency.
This logic makes sense to think that most stub coins are fixed one-to-one in the US dollar. It is important to keep the US stubcoin market stable, as increased demand for stable coins means increased demand for the US dollar.
During the presidential election, Trump has pledged to support Bitcoin mining. He said he hopes that all Bitcoin will be mined in the US. He also suggested that given the energy-intensive nature of Bitcoin mining, he hopes to invest in new energy infrastructures to achieve this.
The big, flashy moves for bitcoin mining can be huge for crypto. Of course, this should go far beyond providing tax incentives for Bitcoin Miners to move to the US
For example, the US government could launch its own Bitcoin mining program. This ensures that new Bitcoin will be 100% domestic. That may not be as far as it looks, given the Trump White House considers Bitcoin as a national strategic priority.
Taking into account the above, the most obvious investment goal for 2025 is Bitcoin. In many ways, all roads — new strategic Bitcoin reserves, new crypto regulations, and new steps to support Bitcoin mining — lead to Bitcoin.
The White House doesn’t have Bitcoin’s official price target in mind, but it’s no surprise that it’s paying attention to Bitcoin’s prices as a proxy for how well its crypto policy works.
It should provide some degree of heart to potential Bitcoin investors. If Bitcoin prices remain below $100,000, you can see that the brightest minds in Washington, DC are working overtime trying to figure out what they can do next.
Consider this before purchasing inventory with Bitcoin.
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Dominic Basulto has a position in Bitcoin. Motley Fool has a position and recommends Bitcoin. Motley Fools have a disclosure policy.
President Trump has been in office within two months. Here’s what he can do for cryptocurrency next year: Originally published by The Motley Fool
