The Impact of Trump's Presidency on the Encryption Industry and the Layout of His Family Projects

The Significance of Trump's Ascension to the Encryption Industry

Since December, the "Trump deal" has sparked heated discussions in the market. For the encryption industry, the focus has shifted to the extent to which Trump fulfills his campaign promises. During the transition of power, Trump quickly nominated several key positions, which will influence the direction of encryption policies in the United States and globally over the next four years. Trump's presidency signifies new opportunities and policy uncertainties for the industry.

Important institutions related to the encryption industry within Trump's cabinet include the Office of Artificial Intelligence and Cryptocurrency Affairs. This agency is responsible for formulating the regulatory framework for the encryption industry, coordinating with organizations such as the SEC, CFTC, and Congress. The Crypto Advisory Council, established under it, is composed of 24 CEOs from encryption companies, providing recommendations for policy making.

Trump's promised encryption-related new policies include:

1. Build the United States into a global encryption center
2. Stop the crackdown on encryption after taking office.
3. Prevent the development of central bank digital currencies
4. Establish a strategic Bitcoin reserve
5. Replace the SEC Chairman
6. Prevent the sale of government-held Bitcoin
7. Use Bitcoin to Solve the U.S. Debt Problem
8. Formulate a comprehensive encryption policy
9. Establishment of the encryption advisory committee

From the perspective of personnel appointments, Trump has fulfilled the commitments of Articles 5 and 9. The newly established advisory agency, the Senate cryptocurrency committee, and the replacement of the SEC chairman all indicate that Trump is honoring his campaign promises.

For the encryption industry, this means that the previously strict regulatory policies may gradually be relaxed, while more comprehensive legislation will promote the industry's move towards the mainstream.

The Trump family's encryption project layout

Trump not only established an encryption advisory team at the government level, but his family has also begun to invest in the encryption industry, which provides a forward-looking basis for future regulatory leniency.

In early 2025, the MEME coin TRUMP, personally released by Trump, became the focus of the industry. The project's market capitalization exceeded $30 billion within a day, once again triggering the wealth effect in the industry. Trump's personal involvement in issuing the coin reflects that his level of support for the encryption industry may exceed market expectations. The success of the TRUMP token could further encourage Trump and his cabinet to relax regulations and accelerate the formalization process of the industry.

Apart from Trump, the most important project of the Trump family is World Liberty Financial (WLFI). Although official statements claim that Trump and family members do not directly participate in the project, Trump's three sons are referred to as the project's "ambassadors," and close allies also serve as co-founders. The project's advisory team includes partners and CEOs from well-known investment institutions.

WLFI has taken various legal measures to circumvent current regulations, such as making tokens non-transferable and raising funds through SEC Regulation D Rule 506(c). The project is positioned as a decentralized lending platform built on Aave and is currently in the public fundraising phase.

WLFI has recently started to purchase a large number of tokens, becoming a new market barometer for investment direction. From the tokens held, aside from BTC, ETH, and stablecoins, the focus is mainly on DeFi-related projects. Most of the core team members of the projects have a DeFi background.

The Impact of the Trump Family Project on the DeFi Track

Trump's issuance of MEME coin brings enormous imagination space to the market, indicating that the industry may welcome a relaxed regulatory environment in the next four years. The TRUMP project has made sufficient preparations in legal framework, compliance, and institutional cooperation, demonstrating its long-term development intentions.

The operation of the WLFI project shows an anticipation of future DeFi regulation. Combined with the new DeFi tax regulations proposed by the IRS at the end of 2024, it can be speculated that relatively systematic DeFi legislative regulation may be introduced in 2025, including requirements for KYC, anti-money laundering, and counter-terrorism financing.

From an optimistic perspective, WLFI, as the non-MEME project strongly endorsed by the Trump family, indicates confidence in the DeFi sector. Its comprehensive design of compliance architecture suggests that the project anticipates a potential simultaneous easing of regulations and advancement of compliance after Trump's return to power, which would be beneficial for DeFi to enter the mainstream.

Based on Trump's issuance of tokens, the composition of his cabinet, and his family's DeFi projects, it is clear that Trump has a relatively explicit supportive attitude towards the encryption industry. Although the specific degree of regulatory relaxation remains uncertain, at least before the 2027 midterm elections in the United States, there is relatively little resistance to the implementation of Trump's policies, which is a relatively favorable important period for DeFi and the entire encryption industry.