Trump's State of the Union Ignites Debate Over Crypto Regulation

US President Donald Trump delivered a record-length State of the Union address on Tuesday, focusing on economic gains and warning Iran against pursuing nuclear weapons.

The speech lasted nearly two hours and covered various topics such as taxes, AI, housing, and healthcare. However, digital assets were entirely absent from the address.

Trump's family has deep ties to the crypto industry, with his sons Donald Jr. and Eric involved in ventures like World Liberty Financial and token launches.

The president himself has previously pledged to make the US 'the crypto capital of the planet', but this promise was not mentioned in the address.

Instead, Trump focused on his tariff agenda, defending it after a Supreme Court setback. The court struck down emergency tariffs, and Trump vowed to maintain them under alternative legal authorities.

The rollout of these new tariffs has been chaotic, with Trump initially announcing a 10% replacement rate, then revising it to 15%. However, official documents show the lower rate took effect on Tuesday without any directive to raise it.

The European Union suspended ratification of its summer trade deal on Monday, and India deferred scheduled talks. Economists have questioned the effectiveness of tariffs in replacing income taxes, as the federal government collected $2.4 trillion in income taxes last year but only $300 billion from tariffs.