What Trump’s Pro-Crypto Policies Mean for Bitcoin, Ethereum, and Solana

As the 47th President of the United States, Donald Trump is making waves in the crypto world with policies that could reshape the industry’s future. From regulatory changes to launching Trump-branded tokens, his administration is making bold moves that could impact Bitcoin, Ethereum, Solana, and beyond.

Crypto influencer VirtualBacon recently discussed these developments in a detailed X thread, giving a closer look at what’s coming for the market.

Trump’s New Tokens Create a Buzz

Over the weekend, two Trump-backed tokens, Trump Coin (TRUMP) and Melania Coin (MELANIA), were launched on the Solana blockchain, taking the crypto market by storm. Trump Coin hit a $8 billion market cap with an impressive $42 billion fully diluted valuation (FDV) in just one day. Melania Coin also performed well, reaching a $1 billion market cap and a $5 billion FDV.

This has sparked a wave of retail interest not seen since the Dogecoin craze of 2021. However, U.S. regulations limit the creation of additional Trump-branded tokens, making these two coins stand out.

Trump’s push into Solana, Ethereum, and memecoins could soon challenge the dominance of Bitcoin and XRP, adding more competition to the market.

Trump’s New Executive Orders

Trump has already signed over 80 executive orders in his first days back in office, and rumors suggest more than 200 could follow, many favoring the cryptocurrency sector. Potential moves include:

• Clear regulations for DeFi and ETFs.
• Support for blockchain innovation.
• Recognizing Bitcoin as a Strategic Reserve Asset.

Although large-scale Bitcoin purchases by the U.S. government are unlikely due to budget limits, using the 200,000 BTC currently held by the U.S. government could set a strong example for other countries.

SEC Shake-Up Brings Optimism

The SEC is also undergoing a major leadership change, with Paul Atkins set to replace Gary Gensler as Chair. Expected changes include:

• Ending Rule 3b-6, which would allow U.S. users access to DeFi platforms like Uniswap.
• Ending Operation Choke Point, which has limited crypto companies’ banking options.
• Advancing the Fit for the 21st Century Act, creating a more crypto-friendly regulatory environment.

Ethereum and Solana Stand Out

Trump’s pro-crypto policies could be especially beneficial for Ethereum and Solana:

• Ethereum: Strong ETF inflows, a solid staking system, and solid performance year-round.
• Solana: Setting new records for decentralized exchange (DEX) volume, partly driven by hosting Trump and Melania Coins.

Macro Factors Fuel Bitcoin’s Bull Run

Bitcoin is primed for a significant rally, with macroeconomic factors aligning in its favor. A potential Fed pivot to quantitative easing (QE) after the Jan. 29 and Mar. 18 FOMC meetings could inject liquidity into the market. Plus, a weaker U.S. dollar under Trump’s administration could further boost Bitcoin’s appeal.

VirtualBacon advises holding Bitcoin, Ethereum, and Solana in the short term while monitoring tax reVirtualBacon advises focusing on Bitcoin, Ethereum, and Solana in the short term, while keeping an eye on tax reforms, ETF developments, and broader economic trends for long-term strategies.

With Trump’s pro-crypto stance shaping the market, the next bull run could be just around the corner.