Trump’s Crypto Gambit: How His Aggressive Policies Are Reshaping Global Digital Asset Rules

Love him or hate him, Trump’s latest crypto play is forcing regulators worldwide to pick a side.

The Trump Effect: Disrupting the Regulatory Status Quo

From executive orders targeting stablecoins to jawboning the SEC into softer enforcement, the former president’s moves create ripple effects across financial markets. Asian exchanges report 20% more US-based traders since his policy shifts began.

Decentralization vs. Dollar Dominance

While touting ‘crypto freedom,’ Trump’s team quietly pushes for USD-backed stablecoin supremacy. Traders cheer the volatility—compliance officers less so.

The Institutional Floodgates Open

BlackRock’s sudden Bitcoin ETF expansion? Directly tied to clearer US guidance. Pension funds now allocating 3x more to digital assets than pre-2024.

The Cynical Take:
Wall Street always wins—whether through regulation, deregulation, or the inevitable ‘re-re-regulation’ coming after the next election cycle.

The UK and Cryptocurrencies

The Governor of the Bank of England, Andrew Bailey, is known for his occasional negative remarks concerning cryptocurrencies. In a climate where some of the world’s largest banks are beginning to issue their own stablecoins, Bailey offered insights in an interview with Times magazine. He emphasized that banks should interact with real money rather than tokenize assets linked to traditional currencies, maintaining a stable value.

What should banks do then? Andrew suggests that tokenized deposits WOULD be a better alternative. This represents a digital version of traditional money, preventing the outflow of money from the banking system and ensuring that funds available for credit are not risked.

As the chair of the Financial Stability Board, the Governor of the Bank of England is likely to prevent the issuance of stablecoins in the UK for a considerable time. His cautious stance is likely to affect the UK’s position in the evolving world of cryptocurrencies.

What Are the Risks?

Expressing unease over Bitcoin’s rise, Andrew sees cryptocurrencies as a risk to traditional markets. Yet, the world’s largest asset manager has already adapted to this process, as BlackRock holds billions of dollars in BTC for its clients. Giants like BNY or JPM are involved in crypto ventures involving billions of dollars. Meanwhile, US states have begun approving strategic Bitcoin$119,045 reserve laws.

Financial giants like Visa and Mastercard have already integrated cryptocurrencies into their operations. Companies like Stripe and PayPal have long developed their relationships with crypto.

However, the BOE Governor argues that the collapse of stablecoins and the subsequent forced liquidation of collateral assets pose significant market risks. But if collateral assets cannot be quickly converted to cash, then why are they considered the safest cash-equivalent assets? US bonds are the most commonly used collateral for stablecoins, and if they can’t cover a few hundred billion dollars in emergency sales, the riskier aspect may be the existing traditional financial system rather than cryptocurrencies.