The policy shift under the Trump administration has brought significant changes to the crypto industry in the US. Compared to the stringent regulatory approach of the Biden administration, President Donald Trump has adopted a more permissive and supportive stance towards digital assets. This change in direction has been welcomed by many in the industry, including exchanges, institutional investors, and retail traders, who see this deregulation as an opportunity for growth and innovation.
During President Joe Biden’s tenure, federal agencies intensified their scrutiny of the crypto industry. The Department of Justice (DOJ) established the National Cryptocurrency Enforcement Team (NCET) in 2021 to combat crypto-related crimes, while the Securities and Exchange Commission (SEC) under Chair Gary Gensler pursued numerous enforcement actions against major exchanges for alleged securities violations. The FDIC and the Federal Reserve also issued guidance discouraging banks from engaging with crypto firms, effectively debanking parts of the industry.
The Biden administration’s strategy aimed to mitigate perceived risks associated with digital assets, similar to the original Operation Choke Point. However, the Trump administration has taken a different approach, with Executive Order 14178 dismantling much of the regulatory framework put in place by the previous administration. The disbanding of the NCET marks a shift towards a more favorable environment for the crypto industry, with reduced regulatory pressures and an aggressive move towards a national Bitcoin reserve.
In 2023 alone, the SEC initiated 46 crypto-related enforcement actions, marking a 53% increase from the previous year. The aggressive enforcement campaign under the Biden administration created challenges for the industry, leading to concerns about overregulation and stifling innovation. By comparing regulatory priorities across administrations, assessing specific case withdrawals, and exploring the legal and market implications of this transition, CryptoSlate aims to provide a thorough breakdown of the United States’ evolving approach to digital asset oversight.
Overall, the policy reversal under the Trump administration has reshaped the relationship between the US federal government and the crypto industry. With a more permissive and supportive stance towards digital assets, the industry anticipates a much more favorable regulatory environment in the next four years. The dismantling of the NCET and the disbanding of key enforcement actions signal a significant departure from the previous administration’s approach, providing new opportunities for growth and innovation in the crypto space.
