U.S. Crypto Policy Takes a Historic Turn Under Trump Administration

Under the President Donald Trump Administration, the U.S. government has taken a markedly different approach toward cryptocurrency. Instead of treating the sector as a regulatory problem or speculative threat, Washington is now moving to integrate crypto directly into the existing financial system. According to @tiger_research, the U.S. strategy is not to replace traditional finance with crypto, but to make crypto operate under familiar financial rules and structures.U.S. SEC Signals New Era of Crypto RegulationA major shift has occurred at the U.S. SEC. Under former Chair Gary Gensler, crypto regulation relied heavily on enforcement actions against companies like Ripple, Coinbase, and Binance. Clear rules were often missing, with lawsuits taking priority over guidance.After Gensler’s exit, this approach changed. Under new leadership, the SEC introduced Project Crypto, aiming to clearly define which digital tokens qualify as securities. According to tiger_research, this signals a move away from regulation through lawsuits toward a structured regulatory framework, an important step for the crypto industry’s long-term growth.CFTC Embraces Crypto as CollateralThe Commodity Futures Trading Commission (CFTC) has also expanded its role. It formally recognized Bitcoin and Ethereum as commodities and approved them, alongside USDC, for use as collateral in derivatives markets.Through its Digital Asset Collateral Pilot Program, the CFTC applied traditional risk controls like haircuts, treating crypto assets similarly to conventional financial collateral. This signals a deeper level of institutional trust and positions crypto as functional financial infrastructure, not just speculative assets.OCC Opens the Banking DoorPerhaps the most structural shift came from the Office of the Comptroller of the Currency (OCC). Previously, crypto firms were locked out of federal banking oversight and forced to navigate state-by-state licensing.That changed in late 2025, when the OCC conditionally approved national trust bank charters for firms such as Circle and Ripple. This move puts major crypto companies on equal footing with traditional banks, allowing nationwide operations and direct settlement without intermediary banks.Stablecoins Get Legal ClarityCongress also delivered long-awaited clarity through the GENIUS Act, which set strict rules for stablecoin issuers. The law mandates 100% reserve backing, bans rehypothecation, and assigns federal oversight. As the analyst notes, this effectively transforms stablecoins into legally recognized digital dollars.Why This Matters for CryptoThis past year shows the U.S. is not banning crypto, nor fully deregulating it. Instead, it is absorbing crypto into its financial core. Regulatory debates still exist, especially around privacy tools like Tornado Cash, but those tensions reflect institutional checks rather than policy reversal.For crypto markets, Bitcoin’s 2025 run under Trump was volatile but constructive. BTC surged above $109,000 early in the year on pro-crypto optimism and regulatory clarity, then sold off sharply after Trump’s tariff announcements hit risk markets. Despite the pullback, adoption kept rising through state reserves and corporate Bitcoin treasuries, helping BTC recover and rally again. After the Fed cut rates in September, Bitcoin surged to a new all-time high near $125,800 in October, with bullish macro conditions reviving upside expectations.FAQsHow might the SEC’s shift from enforcement to structured regulation impact crypto investors? A clear regulatory framework reduces legal uncertainty, encouraging institutional investment and enabling startups to innovate without fearing unexpected lawsuits. What are the potential effects of crypto firms gaining federal bank charters? National trust bank charters allow firms like Circle and Ripple to operate nationwide, speeding up transactions and integrating crypto more closely with traditional finance. What could the CFTC’s approval of crypto as collateral mean for markets? Treating crypto like traditional financial collateral allows derivatives and lending markets to expand, increasing liquidity and encouraging broader institutional adoption.