Donald Trump's approach to cryptocurrency is shifting towards active support, aiming to establish the U.S. as a global leader in digital finance by fostering innovation, challenging traditional norms, and potentially reshaping the economy.

Short-term, a likely replacement of SEC Chair Gensler with a pro-crypto advocate could boost market optimism, while long-term goals include acquiring up to one million Bitcoins and establishing comprehensive legislation by 2026.

Key figures like potential SEC Chair Paul Atkins and Senator Cynthia Lummis are pushing legislative efforts such as the BITCOIN Act and Project Crypto to modernize crypto regulation and create a strategic Bitcoin reserve.

Trump's policies aim to dismantle regulatory overreach, oppose a Central Bank Digital Currency (CBDC), and promote domestic Bitcoin mining and a national Bitcoin stockpile, with promises to replace SEC Chairman Gensler on day one.

Beneficiaries of these policy shifts include crypto exchanges, blockchain firms, and Bitcoin miners, all poised for growth under a more favorable regulatory environment, while traditional financial institutions may face increased challenges.

The Trump family is heavily invested in crypto ventures, including stablecoins, mining, and meme coins, raising concerns about conflicts of interest and market influence, with family holdings valued at $6.5 billion.

His administration has taken pro-crypto actions, including launching a strategic Bitcoin reserve, backing stablecoin legislation, and issuing orders to prevent banks from denying services based on political reasons, coinciding with Bitcoin reaching a record high of $120,000.

Since returning to office in January 2025, Trump has shifted from skepticism to active advocacy of cryptocurrencies, emphasizing an 'America First' approach and legitimizing digital assets through legislation and executive orders.

The move towards a lighter regulatory environment and the creation of a strategic Bitcoin reserve could position the U.S. as a leader in digital finance, influencing global policies and attracting international investment, while raising concerns about conflicts of interest.

Crypto analyst David Bailey predicts a prolonged bull market, with high institutional interest suggesting that a Bitcoin bear market is unlikely for several years.

These developments present opportunities for the crypto industry with friendlier regulations and larger markets, but also pose risks related to sustainability and potential bubbles in the digital financial system.

The crypto community has heavily funded Trump's reelection campaign, with significant donations from influential figures, indicating strong political support for his pro-crypto stance.