The cryptocurrency market is evolving at an incredible pace in 2025. Just two months into Donald Trump’s second term as president, we’ve witnessed significant changes, including a reduction in the Security and Exchange Commission’s regulatory powers over crypto, the establishment of a Strategic Bitcoin (BTC 0.04%) Reserve, and a surge of executive orders focused on digital assets.
And that’s only the beginning. There are even more developments on the horizon over the next year. Below is a quick overview of three crucial advancements to keep an eye on and their potential implications for your cryptocurrency investments.
New purchasing authority for the Strategic Bitcoin Reserve
First up, one of the most pressing concerns for Bitcoin investors is the formation of the Strategic Bitcoin Reserve in March. It is projected that the U.S. will consolidate its 200,000 bitcoin holdings into a single centralized reserve. Unlike previous administrations, this one intends to hold these coins indefinitely.
However, there are further actions the Trump administration might consider. The administration has indicated that it is exploring budget-neutral methods to acquire even more Bitcoin, without using taxpayer money or increasing the national debt.
This may require some innovative solutions. Various proposals have already surfaced, ranging from re-evaluating gold certificates owned by the Federal Reserve to utilizing cost savings from the Department of Government Efficiency to authorize additional Bitcoin purchases for the government.
If this comes to fruition, it would mark a significant milestone and likely cause Bitcoin’s price to surge. Under the Bitcoin Act of 2024, the government was committed to acquiring 200,000 bitcoins each year for five years, totaling 1 million bitcoins— a scale of purchasing never seen before.
Bitcoin enthusiast Michael Saylor, the founder and executive chairman of Strategy (formerly MicroStrategy), has raised the stakes even higher, advocating for the U.S. government to accumulate as much as 25% of the entire circulating Bitcoin supply (approximately 5 million bitcoins) by 2035.
Comprehensive regulatory framework for the crypto sector
Next on the agenda is the need for a comprehensive regulatory framework for the U.S. crypto industry, similar to the new Markets in Crypto Assets (MiCA) framework in the European Union.
Currently, the U.S. is without a cohesive regulatory structure for cryptocurrencies, leading to numerous market deficiencies. This gap allows scammers and criminals to exploit the system with crypto transactions that should be illegal. The aftermath of the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange in November 2022 prompted industry leaders to urge the government to take measures—any measures—to safeguard the crypto industry’s integrity. Minimal action was taken under the Biden administration.
Additionally, the absence of a clear regulatory framework results in significant market uncertainty. Many businesses hesitate to invest time and resources into new products or services if there’s a possibility the government could later declare them illegal. This scenario unfolded in 2023 when the SEC decided to clamp down on staking, a widely practiced crypto activity.
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At present, there are several important legislative measures awaiting the president’s approval in 2025. The most straightforward is the GENIUS Act of 2025, designed to oversee the $200 billion stablecoin market. “GENIUS” is an acronym standing for “Guiding and Establishing National Innovation for U.S. Stablecoins.” Pending congressional approval, Trump is expected to sign this into law within the next couple of months.
Why focus on stablecoins? The Trump administration now considers them vital for maintaining the U.S. dollar’s dominance. In the traditional financial realm, the dollar remains the global reserve currency. Therefore, the administration believes it should also serve as the reserve currency in the crypto domain.
This rationale holds when you note that most stablecoins are pegged 1-to-1 with the U.S. dollar. An increase in demand for stablecoins translates to a higher demand for U.S. dollars, making it crucial to keep the U.S. stablecoin market stable.
A bold initiative for Bitcoin mining?
During his presidential campaign, Trump committed to supporting the Bitcoin mining sector, stating his desire for all Bitcoin to be mined within the United States. He also hinted at a willingness to invest in new energy infrastructure to facilitate this objective, given the energy-intensive nature of Bitcoin mining.
A major initiative for Bitcoin mining could significantly benefit the crypto landscape. However, it would need to go far beyond merely providing tax incentives for Bitcoin miners to set up shop in the U.S.
For instance, the government might initiate its own Bitcoin mining program to guarantee that new Bitcoin production is entirely domestic. Considering the administration’s perspective on Bitcoin as a national strategic priority, this idea might not be as far-fetched as it seems.
Which cryptocurrencies should you invest in?
Given the developments outlined above, Bitcoin appears to be the most logical investment target for 2025. In many respects, all roads—the Strategic Bitcoin Reserve, forthcoming crypto regulations, and initiatives to support Bitcoin mining—lead back to Bitcoin.
While the administration has not set a formal price target for Bitcoin, it is closely monitoring its price as a benchmark for the effectiveness of its crypto policies.
This should provide some reassurance to prospective Bitcoin investors. If Bitcoin’s price remains under $100,000, you can be assured that the brightest minds in Washington, D.C., will be diligently working to determine their next steps.
