Trump 2.0 is crypto’s new best friend. With lawsuits dropped and regulators stepping back, the digital asset industry’s golden era is just beginning. Lexology PRO looks at how US crypto policy has shifted since January.
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When Donald Trump returned to the White House in January 2025, he promised to be a “crypto president.”
Six months into his second term, that promise is taking shape. The US Securities and Exchange Commission (SEC), now under crypto-friendly leadership, has dropped high-profile lawsuits against Binance, Ripple, Coinbase, and others, whilst it has quietly closed investigations into companies such as Crypto.com. The cases concerned allegations of mishandling client funds, poor compliance procedures, and securities violations.
The message is clear: the regulatory tide has turned. For digital asset businesses, the Trump administration is ushering in a new era of leniency, clarity, and opportunity.
Lexology PRO lays out the key events and regulatory updates dictating the crypto industry since Trump’s inauguration on 20 January 2025.
Vehemently pro-crypto White House
Trump’s return to the White House has been marked by an unmistakable embrace of digital assets.
Trump began to lay groundwork for a crypto-forward administration in December 2024, when he announced that investor and entrepreneur David Sacks would become the “White House AI & Crypto Czar,” a symbolic nod to the industries he sees as central to America’s future. Before he became a part-time government employee, Sacks owned Bitcoin, Ethereum, and Solana, according to a memo from the Office of Government Ethics.
The Trump family’s decentralised finance venture, World Liberty Financial, celebrated inauguration day by purchasing US$47 million in cryptocurrencies, a move widely interpreted as a signal of intent. The venture has since launched a stablecoin (USD1), now trading on major exchanges like Binance and KuCoin.
Adding a layer of spectacle to the administration’s crypto enthusiasm, memecoins $TRUMP and $MELANIA were launched around the same time. These tokens, while interpreted by some as gimmicks, have become symbols of the administration’s unconventional approach to digital finance.
The message from the top is clear: this White House isn’t just friendly to crypto – it’s actively participating in and boosting the industry.
The SEC is under new management
Trump had his eyes on the SEC management well before returning to the White House in 2025. He even promised to fire SEC chair Gary Gensler on day one of his second administration.
Instead, Gensler – known for his aggressive oversight of cryptocurrencies – announced in November 2024 that he would depart the SEC upon Trump’s inauguration.
Trump announced in December that he would nominate Paul Atkins as Gensler’s replacement, stating that his nominee “recognises that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
In his nomination hearing before the Senate Banking Committee on 27 March 2025, Atkins testified he has witnessed how “ambiguous and non-existent regulations for digital assets create uncertainty in the market and inhibit innovation.” Atkins also seeks to “provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.”
Expect less regulation, more freedom
For crypto companies, the second Trump administration is shaping up to be a regulatory reprieve. With enforcement actions paused and the SEC under crypto-sympathetic leadership, the threat of legal crackdowns has significantly diminished.
For instance, the SEC’s decision to drop its lawsuit against Coinbase in February 2025 – without fines or changes to the company’s business model or governance structure – has been hailed by many in the crypto industry as a win.
The result? A growing sense of confidence across the sector. Companies that once operated in legal grey zones may now feel emboldened to innovate more aggressively, launch new products, or expand into US markets without fear of immediate reprisal.
However, this regulatory retreat also introduces potential risks for the broader digital asset ecosystem. Some crypto companies may interpret the withdrawal of enforcement action as a green light to push legal boundaries. This could lead to a rise in risky or non-compliant behaviour, potentially harming consumers and investors.
This regulatory relaxation could also accelerate crypto’s mainstream adoption. Already, more than 15,000 businesses globally accept Bitcoin, including over 2,300 in the US.
With fewer compliance hurdles and a friendlier policy environment, more online retailers, fintech platforms, and even traditional enterprises may begin accepting digital assets as payment.