As crypto moves into the halls of power, the industry is facing an uncomfortable question:
Is government interest a validation of the tech – or a threat to its ideals? Donald Trump’s embrace of stablecoins, Bitcoin reserves, and deregulatory policy is forcing the issue into the spotlight.
“Donald Trump’s administration ran on the promise to make America the capital of crypto,” Anastasija Plotnikova, CEO and cofounder of Fideum, told The Crypto Radio.
“We can see the results of that not only via the public statements but through the legislative initiatives such as STABLE and GENIUS bills – that aim to legitimize stablecoins, and the 180-degree change of SEC’s position,” she added.
“Industry is eagerly waiting for the promised comprehensive legislation that will cover other types of digital assets.”
Trump’s stance has shifted sharply since his earlier days in office. Once a vocal critic of Bitcoin, he now openly supports pro-crypto legislation and blockchain ventures tied to his inner circle.
Two sides to Trump’s crypto push
Beyond legislation, there’s also a symbolic shift underway. Industry leaders point to a dual effect: crypto is gaining mainstream visibility and policy support, but also drawing concerns about monopolies and political influence.
“When high-profile political families start engaging with crypto, it brings a wave of new users and shows the space is being taken seriously at the highest levels. But that kind of influence can also be used to shape the narrative, set the rules, and make it harder for other players to compete,” Kelghe D’Cruz, CEO of Pairs, told The Crypto Radio.
“The Trumps aren’t treating crypto as ‘just another speculative asset’. Executive orders frame blockchain as economic sovereignty, while partnerships aim to monetize the sector politically,” said Tim Delhaes, CEO and founder of Grindery.
“Crypto’s politicization accelerates adoption but risks turning decentralized tools into instruments of control. The industry must guard against co-option,” said Delhaes.
The introduction of World Liberty Financial’s stablecoin, USD1 – pegged to the U.S. dollar and backed by treasuries – also raises questions about how such politically affiliated digital assets might shape investors’ decisions.
“USD1 is technically sound – pegged to the dollar and backed by Treasuries – but its branding is pure politics. For supporters, it’s a loyalty token; for critics, a red flag,” Delhaes said.
However, “success requires proving utility beyond symbolism,” he added.
D’Cruz noted that institutions can shape how users adopt certain assets, particularly “if it’s positioned as ‘safe’, ‘official’, or ‘patriotic’.”
For professional traders and DeFi users, Plotnikova believes the focus lies in the “underlying theme of the stable asset and its use cases, liquidity, and adoption to facilitate the engagement and trading.”
Strategic reserve sparks optimism
The STABLE and GENIUS Acts weren’t the only moves. On March 6, Trump signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile – a decision widely welcomed across the crypto space.
Since taking office, Trump has also eased crypto regulations, with the Securities and Exchange Commission halting enforcement and scaling back cases.
Nevertheless, has the Trump administration’s approach to crypto regulation altered the playing field for U.S.-based projects?
“I speak with U.S.-based builders almost daily and the message is consistent, investors are on the sidelines, waiting for clearer direction before committing capital,” said D’Cruz.
D’Cruz observed strong interest, but also hesitation due to “the current regulatory noise” – including congressional debates over legislation and attempts to shut down the National Cryptocurrency Enforcement Team – all of which, he said, “makes it harder to launch or raise capital confidently.”
“Everyone’s watching to see how things settle before they move.”
“Deregulatory signals attract capital but create a two-tiered system: well-connected projects thrive, while others navigate uncertainty,” Delhaes noted.
On the other hand, Plotnikova highlighted that the “campaign promises were made to make it fair and compete with other jurisdictions to attract talent back to the U.S. as well as other companies.
“We have to monitor closely how the situation develops, currently the EU has one of the most detailed legal frameworks for crypto, and businesses like clarity.”
Crypto’s neutrality under pressure
This rapid convergence of politics and crypto forces the industry to confront complex questions: is crypto a tech revolution or a geopolitical weapon?
“This debate isn’t healthy for cryptography’s core principles,” said Delhaes. “Crypto’s strength lies in its neutrality and decentralized ethos.”
“What’s needed isn’t ideological posturing, but a landing zone built on multilateral agreements – rules that preserve crypto’s open-source spirit while addressing legitimate security concerns.”
While momentum is building, concerns remain. Industry leaders may welcome clearer rules and political support, but many are wary of growing centralization – and continue to stress the importance of preserving crypto’s open, decentralized foundations.
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