In the first three months of his second term, President Donald Trump has already set in motion several policy changes and executive actions with far‐reaching consequences for the financial and cryptocurrency sectors.
With a renewed emphasis on lesser regulatory oversight, Trump’s administration is actively changing the financial landscape in the US by revising regulatory frameworks, influencing market practices, and engaging directly with digital asset projects. This analysis outlines the key developments and the potential implications for traditional finance and the evolving crypto ecosystem.
One of the Trump Administration’s most prominent policy moves has been the rollback of previous regulatory stances. For instance, the Consumer Financial Protection Bureau (CFPB) announced plans to rescind its May 2024 interpretive rule that had classified BNPL products under the same framework as credit cards. This decision, disclosed in court filings, signals a regulatory change that aims to reduce federal oversight of financial products introduced under a previous administration.
By loosening these regulations, the current administration aims to lower compliance costs for fintech innovators, although this shift may also raise concerns among consumer advocates regarding the potential deterioration of consumer protections.
Another significant decision has been Trump's order to end paper-based Treasury payments by late 2025. The executive order mandates that federal agencies transition from issuing paper cheques to electronic payments, citing efficiency and improved security. This move could potentially modernise federal financial operations while setting the tone for the wider adoption of digital solutions.
Another notable shift in Trump's second term is the administration’s pivot towards a more crypto-friendly stance. After a period of public scepticism at the governmental level, Trump now appears to be supporting digital assets openly. Key actions in this area include:
The Trump administration recently decided to dissolve the National Cryptocurrency Enforcement Team (NCET) within the Department of Justice. This decision reflects a deliberate move away from a heavy-handed enforcement approach toward a model that emphasises market-friendly oversight. The decision is consistent with recent efforts by the Trump administration to scale back what it views as excessive regulatory intervention in the crypto sector. This includes a more restrained enforcement policy from the SEC and public messaging from the President in support of a more permissive environment for digital innovation.
Additionally, Trump’s policies have actively promoted cryptocurrency market-friendly initiatives, as shown by open support for stablecoin projects. A crypto firm associated with Trump unveiled plans for a new digital asset, USD1, which will be backed by short-term US Treasuries and dollar deposits.
In another notable development, the US Securities and Exchange Commission (SEC) filed to drop its lawsuit against Coinbase. The withdrawal of the suit, which had previously targeted Coinbase for its unregistered activities, is indicative of a significant shake-up in crypto regulation under the new administration. By shifting focus away from aggressive enforcement, the administration is looking to clear the regulatory path for crypto exchanges to operate with fewer legal uncertainties.
On the same regulatory front, Trump Media & Technology Group signed an agreement with Crypto.com to launch a suite of exchange-traded funds (ETFs) with a ‘Made in America’ focus. The two companies are looking to launch the funds later in 2025, with them being accessible in Europe and Asia in addition to the US. Moreover, as part of this collaboration, Trump Media is set to leverage Crypto.com’s backend technology, custody, and cryptocurrencies, including Bitcoin and Cronos, for the ETFs.
Apart from actively shaking up the regulatory landscape of the cryptocurrency sector, it’s also worth noting that Donald Trump launched his own meme coin just three days before his inauguration. According to Reuters, the meme coin known as $Trump was launched by the President on 17 January 2025 and quickly surged, reaching a peak of over USD 14.5 billion in overall market value on 19 January, the day before the President’s inauguration. The same source reveals that the cryptocurrency has since slumped by two-thirds.
Reuters, citing multiple blockchain analytics firms, emphasised that entities tied to Donald Trump have accumulated an estimated USD 86 million to USD 100 million in trading fees.
The coin’s ownership remains largely hidden behind limited liability companies, and the extent of Trump’s personal financial involvement has not been confirmed. Official communications for the $Trump token state that CIC Digital receives revenue from trading activity, but the division of income among stakeholders has not been disclosed.
Representatives from the Trump Organisation have described the venture as a continuation of the group's engagement with digital assets, declining to elaborate on financial specifics.
The US administration's active role in promoting cryptocurrency includes moves such as establishing a strategic digital asset stockpile, which is anticipated to have profound long-term effects on both domestic and international financial markets.
The idea of a Bitcoin reserve originated in a 2024 legislative proposal but has evolved into a more centralised government strategy. While described as ‘budget neutral,’ the current policy does not resemble traditional reserve frameworks, such as those used by central banks to settle obligations or manage currency stability. Industry observers from the AtlanticCouncil noted that the concept of a crypto reserve lacks the strategic functionality associated with established asset reserves.
In addition to fiscal concerns, there are unresolved security issues surrounding the management of a centralised digital asset repository. While a White House official likened the reserve to a ‘digital Fort Knox,’ the executive order does not outline any concrete plans for securing it.
Observers have also raised concerns about the broader implications of the reserve’s creation, and the White House walked back initial language suggesting it would actively purchase specific alternative cryptocurrencies.
So far, Trump’s second term has supported increased efforts to integrate fintech into the general financial ecosystem, as exemplified by the termination of paper payments and the relaxation of certain banking regulations. As traditional banks face growing competition from nimble fintech startups, the push for digital transformation is becoming more evident. Policies designed to lower regulatory burdens may stimulate innovation and competition, encouraging banks to adopt more technology-driven solutions.
Furthermore, the evolving regulatory environment, which is now taking a more lenient approach toward digital asset regulation, could pave the way for closer collaboration between traditional financial institutions and crypto startups. With fewer regulatory barriers, partnerships across these sectors might become more common, helping to bridge the gap between legacy financial systems and new digital technologies.
In just three months, President Trump’s second term has generated sweeping changes that are likely to leave a lasting impact on the financial and crypto sectors.
The strategic decisions taken by Trump and his administration, from eliminating the NCET to signing agreements with established fintech players, demonstrate a clear commitment to reshaping financial markets. While such actions have generated optimism among market participants and investors, they also raise important questions about risk management, regulatory oversight, and the balance between innovation and consumer protection.
As the administration continues to implement its agenda, financial institutions and fintech companies will need to adapt to a new regulatory reality, one that is characterised by both greater operational flexibility and elevated market risks. The long-term success of these initiatives will largely depend on the ability of regulators to provide clear, consistent guidelines that encourage innovation without sacrificing the systems that protect consumers and maintain financial stability.
A dedicated and inquisitive copywriter, Dragoș has extensive experience in editing and developing content related to IT and tech. After joining The Paypers, his focus turned to the latest fintech, payments, and crypto announcements. For Dragoș, connecting the dots and observing trends and developments in the industry is becoming second nature.
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