In 2025, President Donald Trump banned retail CBDCs, promoting blockchain financial systems, igniting a surge in crypto markets across the United States.
The regulatory pivot supports a projected market expansion, with Bitcoin hitting new highs, indicating a shift towards internet-native economies bolstered by institutional adoption.
Trump Blocks CBDCs, Supports $TRUMP Crypto Token
In January 2025, Donald Trump issued an executive order to halt the development of retail CBDCs, declaring them a threat to financial stability. This marks a significant shift toward supporting blockchain-based financial systems across the United States.
President Trump further signaled support for digital assets by launching the $TRUMP crypto token. This move aligns with his commitment to bolster the US position in cryptocurrency innovation and regulatory leadership.
Donald Trump, President, United States, "Retail CBDCs are a threat to the stability of the financial system. The private sector is innovating well on its own."
U.S. Crypto Market Poised for $20B Growth by 2033
This policy shift is expected to propel the U.S. crypto market, fostering growth from $9.8 billion in 2024 to $29.8 billion by 2033. Market participants anticipate increased institutional participation spurred by clearer regulations and government backing.
Potential outcomes include heightened institutional investments and expanded blockchain adoption. Historical data suggests that clear regulatory frameworks could lead to increased market stability and investor confidence. Past trends affirm the significance of regulatory clarity in market performance.
U.S. Crypto Policy Redefined by Trump's Executive Order
Previous US regulatory pivots, such as the Malta Blockchain Island boom, underscored the impact of supportive legislation on local economies. However, they lacked Trump’s nationwide scale and geopolitical significance. This latest shift redefines US crypto policy trajectory.
Experts, like Raoul Pal, foresee substantial liquidity transitions to blockchain-driven finance. By aligning with historical trends favoring clear guidance and institutional influx, current policies promise robust integration of digital currencies in traditional markets.
Raoul Pal, CEO, Real Vision, "Institutional money is flooding into crypto as the traditional system sunsets. The real revolution is now institutional-scale capital movements on-chain."