Donald Trump's second term began on January 20 and, just over a month in length, already promotes a profound reconfiguration in the economic policies of the United States. The president's new guidelines on international trade relations have impacted global investments, increasing volatility in stock exchanges around the world. The so-called “efit-Trump” redefining the way markets react to regulatory changes and new strategies implemented by the American government.
This reconfiguration is not limited to international trade or macroeconomic policies alone.The crypto ecosystem is one of the most impacted sectors, undergoing a significant transformation. The previous administration's approach, marked by restrictions and caution regarding digital assets, is being replaced by a vision that prioritizes technological innovation and financial freedom. This change in stance not only reflects the growing influence of the crypto sector on the global economy, but also signals an alignment with the principles of decentralization and privacy fundamental to the crypto community.
Bitcoin is an alternative to the traditional system
In recent weeks, Trump has threatened to apply a 25% rate on products from Mexico and Canada, and to apply a 10% surcharge on items imported from China and 25% for all steel and aluminum imports destined for the US. These protectionist measures have generated a scenario of uncertainty in global markets, especially impacting assets considered risky. The rise in trade costs tends to press inflation and discourage investments, creating a challenging environment.
“O Bitcoin has been standing out as a reliable asset amid this volatility. While exchanges around the world accumulate significant losses, Bitcoin has remained virtually stable, reinforcing its role as a store of value in times of economic instability.This resilience demonstrates the growing maturity of the digital asset and its ability to attract investors seeking protection from the uncertainties of the traditional market”, says Luiz Parreira, CEO of Bipa.
Against this backdrop of drastic changes in economic and regulatory policies, the new Trump administration has taken a more favorable stance on innovation in the crypto sector.The recent executive orders signed by the president reflect a clear effort to reshape current regulation and stimulate the growth of the digital asset market in the United States. This pro-crypto turn marks the beginning of a new phase for the sector, which now has a more favorable environment for the development of decentralized financial technologies and the participation of large institutional investors.
Executive orders and regulatory reformulation
Donald Trump's second term brought a profound reconfiguration in the United States' regulatory policy regarding the crypto ecosystem.This transformation marks a break with the restrictive approach of the Biden administration, establishing a new paradigm that prioritizes innovation and financial freedom in the sector.
Two executive orders significantly affecting the cryptocurrency and Bitcoin sector signed by Trump in January and represent the first concrete steps of this change. The first of them repealed Executive Order 14067 of the Biden administration, which imposed restrictions on the crypto sector and promoted the development of a Central Bank Digital Currency (CBDC).In its place, a pro-crypto policy was established, explicitly prohibiting the creation of CBDCs and creating a Presidential Working Group on Digital Asset Markets Trump”, it has determined that all federal agencies review their regulations on Bitcoin in a 60 days of crypto-crypto-credit 30.
The second executive order focused on revoking SAB 121, eliminating the requirement for banks and financial institutions to include crypto assets in their balance sheets. This measure removes one of the main obstacles to the entry of traditional financial institutions into the crypto market, allowing for a greater supply of custodial services and products related to digital assets.
Ban on CBDCs
Trump's decision to explicitly ban the development of CBDCs marks a drastic break with the previous administration.The new executive order not only prohibits government agencies from promoting or issuing CBDCs, but also mandates the immediate closure of any project related to these state-owned digital currencies.
This move has been widely celebrated by the crypto community, which views CBDCs as an instrument of state surveillance and government control over individual financial transactions.The ban reflects a political vision that values financial privacy, dollar sovereignty and decentralization, principles aligned with the philosophy of Bitcoin and cryptocurrencies in general.
ETFs boost the market
Bitcoin ETFs launched last year exceeded market expectations.BlackRock IBIT and Fidelity FBTC achieved a combined volume of 4.5 billion dollars on the first day of trading.In just 11 months, IBIT has amassed an impressive 50 billion dollars in assets, breaking records and highlighting the growing demand for regulated products in the Bitcoin ecosystem.
In the Brazilian exchange-traded index fund market, of the ten ETFs that had the highest return to investors in 2024, seven are related to crypto assets and blockchain networks, according to survey quantum Finance.
“ETFs play a crucial role in popularizing the crypto market by simplifying access to these assets. They eliminate the complexity of cryptocurrency custody, allowing exposure to valuation without security and storage concerns, making investment more accessible and attractive. ETFs are an interesting initial step, but it is always worth remembering that they do not give access to a primary feature of Bitcoin: the possibility of the individual to perform their own custody. It is from self-custody that individuals can guarantee their financial sovereignty.”, says Caio Leta, head of research at Bipa.
The “Bitcoinization” of the Financial System
The growth of Bitcoin ETFs represents not only a co-option by the traditional financial system, but also a “Bitcoinization” of this system. Products such as BTC-denominated ETFs, ETFs of companies that have adopted the “Bitcoin”, and debt securities aimed at buying Bitcoin are examples of this integration.
The market is adapting to the logic and principles of Bitcoin, transforming its traditional dynamics.This is just the initial phase of a change that can redefine the foundations of the global financial market.
