Trump's Cryptocurrency U-Turn: A Masterstroke or Mirage?

Donald Trump's presidency marked a significant shift in the US government's stance on cryptocurrencies. After initially dismissing Bitcoin as a scam in 2021, Trump became an ardent supporter of digital finance, launching several initiatives to promote its adoption.

The Strategic Bitcoin Reserve, established in March 2025, aimed to make the US the 'Crypto Capital of the World' by holding various cryptocurrencies, including Solana, Cardano, and Ethereum. This move was seen as a masterstroke by some, who argue that it saved millions of dollars from entering a supply shock pit.

However, critics point out that Trump's involvement in cryptocurrency is closely tied to his own financial interests. His company, World Liberty Financial, issued the WLFI token, and Trump also launched the TRUMP memecoin. These ventures have been accused of being centralised fintech apps disguised as decentralised.

The GENIUS Act, passed in July 2025, established a regulatory framework for the stablecoin market, which was seen as a key step towards promoting digital finance. However, the law has also raised concerns about potential conflicts of interest and undue political influence.