As President Donald Trump enters his second term, cryptocurrency enthusiasts have been left disappointed by the lack of attention to digital assets in his administration's early actions. Despite a promising campaign rhetoric and expectations of pro-crypto policies, the first day of his presidency passed without any significant steps towards advancing the crypto sector.
Notably, Trump’s inaugural speech and his initial set of executive actions made no mention of digital assets, including Bitcoin or a strategic reserve of the cryptocurrency. In addition, his administration failed to address one of the most anticipated actions: a pardon for Ross Ulbricht, the founder of the infamous Silk Road marketplace, who is currently serving a double life sentence without the possibility of parole.
The omission of crypto-related initiatives has left many in the crypto community feeling disillusioned, especially given that many believed Trump's presidency could usher in a more favorable regulatory environment. The idea of a presidential crypto council or plans to create a national Bitcoin reserve had generated widespread optimism, but these hopes have not materialized.
Bitcoin Price Reacts to Silence
Bitcoin had reached an all-time high of $109,000 just before Trump’s inauguration, buoyed by the belief that his presidency would be crypto-friendly. However, following the president’s silence on crypto, the price has corrected to $102,000, damping market enthusiasm and disappointing investors who had expected policy support.
Despite the initial drop, Bitcoin has still managed to rally nearly 50% since Trump’s election in November, as traders and analysts anticipated a favorable regulatory environment under his leadership. But without clear signals from the White House, uncertainty has clouded the outlook for the cryptocurrency market.
Traditional Priorities Take Center Stage
Rather than focusing on digital assets, Trump’s first executive actions have centered around more traditional priorities. These include withdrawing the U.S. from the Paris Climate Accord and the World Health Organization, freezing federal hiring, and dismantling the systems that allowed migrants to schedule port-of-entry appointments. Additionally, Trump directed federal employees to return to in-person work, signaling his opposition to remote operations in government.
While these actions align with Trump's historical focus on traditional conservative policies, crypto supporters had hoped for swift moves to address the regulatory landscape surrounding digital currencies. Instead, the president’s initial actions reflect a more cautious approach, with crypto seemingly absent from his early agenda.
No Action on Executive Order 14067
Another area of concern for the crypto community is Trump’s failure to act on Executive Order 14067, a directive issued during the Biden administration aimed at regulating digital assets. Industry leaders have criticized Trump’s crypto czar, David Sacks, for not prioritizing the repeal of the order, which has been accused of enabling increased enforcement actions against crypto companies.
Matthew Sigel, head of VanEck Digital Assets, specifically criticized the administration for not taking immediate steps to repeal Executive Order 14067. In a tweet on Monday, Sigel described the failure to address the order as a missed opportunity, noting that it had contributed to what some have called “Operation Chokepoint 2.0,” a policy strategy leading to heightened scrutiny of the cryptocurrency sector.
Crypto Community Left in Limbo
The absence of immediate action on key issues has left the crypto community in a state of uncertainty. Expectations of a pro-crypto administration under Trump, once bolstered by the possibility of a strategic Bitcoin reserve and a repeal of unfavorable regulations, have now given way to skepticism.
For example, betting odds on Polymarket for the creation of a national Bitcoin reserve within Trump’s first 100 days have dropped dramatically, from early predictions of over 50% to a current low of just 36%. The steep decline in these odds reflects the growing disillusionment among crypto supporters, who had hoped for a more decisive push for Bitcoin adoption and regulation reform.
January 2025, Cryptoniteuae