The Potential Impact of Trump's Presidency on the Encryption Industry and Analysis of His Family's Project Layout

The Trump Administration's Shift in Attitude Towards the Encryption Industry

Recently, the "Trump Trading" market has sparked heated discussions, with the encryption industry focusing on the extent to which Trump fulfills his campaign promises. Trump quickly nominated several key positions, and these appointments will influence the direction of encryption policies in the U.S. and globally over the next four years. Regardless of the strength of policy implementation, it indicates that the industry faces new opportunities and policy uncertainties.

In Trump's cabinet, the main agency that directly influences policies in the encryption industry is the Office of Artificial Intelligence and Cryptocurrency Affairs. This agency is responsible for establishing the regulatory framework for the industry and liaising with departments such as the SEC, CFTC, and Congress. The subordinate Cryptocurrency Advisory Committee consists of 24 CEOs from cryptocurrency companies, providing advice for policy formulation.

Trump's promised new policies include:

1. Build the United States into a global encryption hub
2. Stop suppressing encryption after taking office.
3. Prevent the development of central bank digital currencies
4. Establishing Strategic Bitcoin Reserves
5. Change the SEC Chairman
6. Prevent the sale of government-held bitcoins
7. Solve the national debt problem with Bitcoin
8. Develop a comprehensive encryption policy
9. Establishment of the encryption advisory committee

From the perspective of personnel appointments, Trump has fulfilled his commitments under Articles 5 and 9. From the newly established advisory bodies to the Senate encryption currency committee, and the replacement of the SEC chairman, the encryption backgrounds of these officials indicate that Trump is fulfilling his campaign promises.

For the encryption industry, on one hand, the previously strict policies may be relaxed, while on the other hand, more comprehensive legislation will promote the mainstreaming of the industry.

The Trump family's encryption project layout

The shift in Trump's attitude towards encryption during his second term is not only reflected in the allocation of government officials, but his family has also begun to engage in encryption investments, providing a forward-looking guide for regulatory leniency.

In early 2025, the MEME coin TRUMP, released by Trump himself on social media, became the focus of the industry. The project's market value surpassed 30 billion dollars in just one day, once again creating a myth of wealth in the industry. This is not just an additional star MEME coin; it also reflects that Trump's support for the encryption industry may exceed market expectations. Witnessing the rapid growth of the TRUMP token's market value may further encourage Trump and his cabinet to loosen regulations, accelerating the normalization of the industry, which is a significant boon for the encryption industry. In addition, on-chain trading volume and the wealth effect may create competitive pressure on centralized exchanges, intensifying competition in the industry.

Apart from the MEME coin, the most important project for the Trump family is World Liberty Financial (WLFI). Although the official statement claims that Trump and family members, as well as their businesses, are not employees of the project, Trump's three sons are all given the title of "ambassador," and his close ally Steve Witkof (nominated as a special envoy to the Middle East) serves as a co-founder alongside his son. The advisory team includes partners and CEOs from well-known investment firms such as Polychain and Scroll.

WLFI legally maintains a distance from the Trump family, but the strong endorsement from Trump's sons has led the market to regard it as a Trump family project. WLFI has made ample preparations for legal compliance, such as making tokens non-transferable and raising funds through SEC Regulation D Rule 506(c), which reduces compliance risks.

WLFI is positioned as a DeFi project, built on Aave for decentralized lending. Starting from the end of November, WLFI has been buying a large amount of tokens, becoming a new market trendsetter. The tokens it holds are mainly concentrated in BTC, ETH, stablecoins, and DeFi-related tokens.

From the team configuration perspective, most of the core members of WLFI come from a DeFi background. The technical leader Corey Caplan previously worked at the DeFi project Dolomite, while chief developer Bogdan Purnavel was formerly a developer at Dough Finance.

The Impact of the Trump Family Project on the DeFi Sector

Trump's issuance of MEME coins brings tremendous imagination space to the market, and it is unprecedented for a president to personally issue coins. Setting aside profit motives, this at least indicates a relaxed regulatory environment for industry development in the next four years. The project's operation shows ample legal, compliance, and institutional cooperation preparations, rather than a hasty endeavor. The certainty of the president's coin issuance and the super narrative are unique, creating a distinctive on-chain market, but long-term support for the industry still needs to be verified. The Trump family hopes to turn WLFI into a sustainable project.

The operation and investment strategies of WLFI, combined with the new DeFi tax regulations proposed by the IRS at the end of 2024, suggest that a relatively systematic DeFi legislative regulation may be introduced in 2025. Although it may not be as strict as previous proposals, the compliance of DeFi will become an important measure in 2025, such as KYC, anti-money laundering, and counter-terrorism financing.

Optimistically, WLFI, as the Trump family's top recommended non-MEME project, indicates a positive outlook on the DeFi sector. Its comprehensive design of compliance architecture suggests that after Trump takes office, regulatory relaxation and compliance promotion may proceed in parallel, which is beneficial for DeFi to enter the mainstream.

From Trump's personal issuance of coins, the composition of his cabinet, and family DeFi projects, it is relatively clear that Trump has a supportive attitude towards the encryption industry. The degree of regulatory relaxation remains uncertain, and the market will continuously adjust its expectations around new policies. At least before the 2027 U.S. midterm elections, there is relatively little resistance to the implementation of Trump's policies, which is a key period relatively favorable for DeFi and the entire encryption industry.