How American encryption companies are responding to Trump's new strategy

A constantly growing field is moving from chaos to common standards, from closed systems to open, ethical innovation.

Written by: Sean Lee, former CEO of Algorand Foundation

Compiled by: Felix, PANews

Cryptocurrencies have long navigated the gray area between innovation and regulation. With the U.S. pushing for a regulatory framework, the crypto industry is facing a critical moment that could unlock scale, capital, and global influence.

During the collaboration with the Crypto Council for Innovation, after multiple dialogues with industry leaders and listening to various viewpoints, a turning point emerged: the upcoming framework will guide the next phase of cryptocurrency development.

Reshaping US Crypto Policy to Enhance Regulatory Clarity

On the third day of his second term, President Trump signed a comprehensive executive order. The "Strengthening American Leadership in Digital Finance Technology" order, released on January 23, rescinded a directive signed by Biden in 2022, shifting the focus from a primarily enforcement-driven approach to a new strategy centered on proactive governance. On March 6, Trump signed an executive order establishing a strategic Bitcoin reserve. This reserve comes from Bitcoin confiscated in criminal cases and will not be sold but held as a long-term strategic asset.

The U.S. SEC has reorganized its cryptocurrency regulatory work into the "Cyber and Emerging Technologies Division" to focus on long-term rule-making, and has established a task force to create a "comprehensive and clear regulatory framework." U.S. SEC Chair Hester Peirce stated that the goal is to allow businesses to "freely experiment and build interesting things." Deputy Attorney General Todd Blanche ordered the immediate dissolution of the National Cryptocurrency Enforcement Team (NCET). This decision, outlined in a four-page memorandum titled "Ending Enforcement-Style Regulation" on April 7, marks a stark contrast to the practices of the previous administration.

The Stablecoin Bill (GENIUS Act) was first introduced in February 2025, marking Washington's first serious attempt to incorporate stablecoins into a clear, federally supported regulatory framework. As of the time of writing this article, the total amount of stablecoins in circulation globally is approximately $243 billion, with over 90% denominated in US dollars. The bill proposes to establish strict standards for reserves, audits, and transparency for stablecoins, and prohibits claims of government backing. Although the GENIUS Act did not pass in May, it sparked a rare bipartisan effort and paved the way for future consumer-centric cryptocurrency legislation.

So far, the impact has been evident, with a surge in trading activity in the crypto market and renewed investor enthusiasm. For example, the $3.6 billion merger between Bitcoin company Twenty One Capital and (SPAC), a special purpose acquisition company led by Brandon Lutnick, the son of Secretary of Commerce Howard Lutnick. This reflects the current market sentiment: confident, opportunistic, and ready to expand. Companies are moving quickly to take advantage of this conducive environment for innovation, go-to-market, and digital asset growth.

This shift in tone has not gone unnoticed: it has changed the way companies handle infrastructure, legal strategies, and institutional trust.

Regulatory clarity injects new vitality into infrastructure expansion

The adjustment of policy tone has triggered tangible changes. Uminers CEO Batyr Hydyrov views the U.S. SEC's latest stance on proof-of-work mining as a catalyst: "The SEC clarifying that certain proof-of-work mining activities are not subject to securities regulation may alleviate the compliance burden on miners. This shift, along with a broader approach to crypto regulation, creates new opportunities to accelerate the realization of the most ambitious parts of the roadmap."

For Hydyrov, establishing a national strategic Bitcoin reserve is an important catalyst. "The establishment of a national strategic Bitcoin reserve marks the increasing acceptance of cryptocurrencies by institutions, which may further encourage investment in mining infrastructure."

However, Hydyrov has not let down his guard. "We are gradually expanding targeted investments, especially in areas that previously had high regulatory risks. However, we still maintain a cautious attitude: the regulatory cycle itself is unpredictable... We believe that the current situation is not a reason to slow down or become complacent, but an opportunity for prudent expansion and preparation for possible changes in global policy."

Legal Adjustment and Fair Access

As the regulatory fog gradually clears, the legal framework regulating market participants is also being redefined. Frank Hepworth, founder of Yieldschool and former regulatory lawyer, believes that the policy shift provides a structural green light for decentralized models: "This is a signal. On-chain businesses do not want their tokens traded on platforms regulated by the SEC... The government is tacitly allowing competitive businesses to enter the market. Therefore, as the risk of penalties decreases, it can be expected that more businesses will choose on-chain trading."

He believes that this shift is disrupting the traditional regulatory framework. "Several well-known crypto lawyers like Gabriel Shapiro have commented that this government is unfavorable to their industry, but overall it is a huge benefit... I agree with this view."

But Hepworth's sharpest criticism targets outdated admission rules: "Voluntary compliance is healthy... but mandatory regulation leads to unequal outcomes, which is the root cause of wealth disparity in the United States." What is his vision? "The regulatory framework should be dominated by cryptocurrency and have cryptocurrency as its native element."

Therefore, with the relaxation of the legal framework and the acceleration of on-chain innovations, the next barrier will be psychological: institutional trust. The industry is currently at this stage and is setting its own standards.

Transparency as a Means to Address Uncertainty

"Even though regulation has become increasingly clear, it is still not complete. During the transition period, it is essential to actively build trust. The GT Protocol, led by Peter Ionov, is at the forefront of this area. 'Indeed, the trend of regulatory relaxation sends complex signals to the market. On one hand, easing regulatory controls is usually seen as a green light for innovation... but on the other hand, the lack of a clear regulatory framework also raises concerns among institutional participants.'"

Peter Ionov stated that investors' reactions are as divided as ever: "This largely depends on the type of investor. More flexible entities with a higher risk tolerance... may see this as an opportunity window. In contrast, traditional financial institutions... tend to remain cautious, waiting for clearer information."

Currently, market-oriented ways of building trust have facilitated responsible innovation, especially in areas that seek to modernize traditional systems: "The entire industry is shifting towards a trust mechanism centered around transparency... Companies are open-sourcing their code, publishing audit reports, and collaborating with licensed vendors."

Looser regulations are an economic catalyst

As transparency enhances investor confidence and legal innovations expand access channels, the stage for the next phase has been set: bold ideas will be scaled up. For Construct Koin, this means leveraging AI and blockchain technology to transform real estate finance. Co-founder Chris Baldrey-Chourio explained, "Reducing regulatory burdens does not mean abandoning rules. Rather, it creates space for the development of solutions in the real world."

However, as global competitors such as the EU and Singapore accelerate their crypto strategies, he issued a warning: "The United States is currently in a leading position, but if no action is taken, this advantage will not last." He also pointed out that the momentum around the development of central bank digital currencies and stablecoin standards is becoming increasingly strong.

He is cautious about excessive expansion, but he believes that if law enforcement weakens and is accompanied by cooperation, it can become a catalyst for experimentation. "We need regulators and builders to stand on the same side." "Only in this way can we achieve breakthroughs while protecting consumers."

Moreover, this dialogue must be based on common principles and ethical foundations, not just on shared interests.

Focus on Ethics Amid Policy Impact

Andrea Perlak, a certified public accountant and founder of the Crypto Accounting Group, provided a comprehensive elaboration on this topic. She believes: "Organizations and industries within the Web3 sector have been committed to maintaining high standards of ethical norms since their inception... Unethical behavior in this industry is abhorrent, and in such a small industry, the impact of a bad reputation is lasting."

She refuted the fallacy that "decentralization means chaos." "Decentralization and accountability are not mutually exclusive concepts... These systems thrive through transparency, multi-level governance, and incentive mechanisms."

As Perlak pointed out, the claim of loosening regulation does not hit the nail on the head: "Believing that the regulation of the cryptocurrency industry is being relaxed is a misunderstanding... The previous government's 'law enforcement regulation' was prevalent... Once proper legislation is introduced, this industry will breathe a sigh of relief."

In the end, as a practical framework is about to be introduced, the industry is no longer shying away from regulation - instead, it is ready to embrace regulation on a solid foundation.

Summary

These voices collectively reflect that a rapidly growing field is moving from chaos towards common standards, from closed systems to open, ethical innovation. If the industry can seize this opportunity, leading with transparency, ethics, and inclusivity—not because it is being asked to do so, but because it is the right thing to do—then it has the potential to redraw the blueprint of modern finance.