Trump administration backs crypto with regulatory clarity, strategic Bitcoin reserve, and top crypto-friendly appointments.

The crypto market erupted in excitement when Donald Trump defeated Kamala Harris in November 2024. Between November 5 and December 8, the total crypto market surged by 63.36%

The Trump administration is fully committed to supporting crypto, Treasury Secretary Scott Bessent has stated, adding that the administration is focused on encouraging sustainable innovation.

The administration is also aware of the potential for stablecoins to drive massive demand for U.S. Treasuries, ultimately reinforcing the dollar’s dominance.

The crypto market shot up in anticipation when Donald Trump’s victory over Kamala Harris was announced in November 2024.

Between November 5 and December 8, the total crypto market value soared by 63.36 percent, fueled by optimism around the new leadership’s pro-crypto stance.

However, after Trump’s inauguration on December 8, market momentum began to cool as the administration adopted a cautious but strategic approach to crypto regulation.

Despite this, key pro-crypto policies have been rolled out and prominent crypto-friendly figures have taken top positions in the government.

Now, Bessent has penned a note reaffirming the administration’s support for digital assets.

In a recent interview, Bessent revealed that the administration is aiming to grow the crypto sector with strict but supportive regulatory frameworks.

U.S. Treasury to Encourage Crypto Innovation with Balanced Regulations

In his note, Bessent highlighted the importance of a balanced approach to support and regulate crypto.

“We must avoid the previous administration’s stance, which was seen as overly destructive and disruptive to many crypto businesses,” he stated.

Under the current leadership, the goal is to encourage sustainable innovation in the industry.

Stablecoins to Drive $2 Trillion Demand for U.S. Treasuries?

Bessent also touched upon the potential impact of stablecoins on the U.S. Treasury market.

He estimated that stablecoins could generate around $2 trillion in short-term demand for U.S. Treasuries and Treasury bills.

This is a significant increase from the current demand of $300 billion.

Stablecoins, such as Tether (USDT), are typically backed 1:1 with a fiat currency like the U.S. dollar and maintain reserves in liquid assets—including government bonds.

As these coins gain traction, their issuers are becoming key buyers of U.S. debt instruments.

This surge in demand could:

Tether’s CEO Paolo Ardoino recently backed this vision, asserting that USDT would help solidify the dollar’s dominance globally.

Meanwhile, the U.S. Senate is preparing a stablecoin regulatory bill, which is expected to provide legal clarity and trigger institutional adoption.

Rumors suggest that giants like Fidelity and JPMorgan may soon issue their own stablecoins.

Trump Admin Integrates Bitcoin Strategy

In March 2025, the Trump administration took a historic step by signing an executive order to establish a strategic Bitcoin reserve, solidifying the U.S. government’s active role in the crypto space.

Since Trump’s election:

Previously, Bessent confirmed that the U.S. government is open to acquiring more Bitcoin, including confiscated assets, to strengthen the national reserve.