The second term of Donald Trump began on January 20 and, with a little over a month in duration, already promotes a deep reconfiguration of the economic policies of the United States. The president's new guidelines on international trade relations have impacted global investments, increasing volatility in stock markets around the world. The so-called "Trump effect" has been 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. The crypto ecosystem is one of the most impacted sectors, going through a significant transformation. The approach of the previous administration, marked by restrictions and caution regarding digital assets, is being replaced by a vision that prioritizes technological innovation and financial freedom. This change in posture 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 that are fundamental to the crypto community
Bitcoin an alternative to the traditional system
In the last few weeks, Trump threatened to impose a 25% tariff on products from Mexico and Canada, in addition to applying a 10% surcharge on imported items from China and 25% on all steel and aluminum imports destined for the US. These protectionist measures have created a scenario of uncertainty in global markets, impacting especially the assets considered risky. The rise in commercial costs tends to put pressure on inflation and discourage investments, creating a challenging environment
Bitcoin has been standing out as a reliable asset amid this volatility. While stock markets around the world accumulate significant losses, Bitcoin has remained practically 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 against the uncertainties of the traditional market, says Luiz Parreira, CEO of Bipa
In light of this scenario of drastic changes in economic and regulatory policies, the new Trump administration has adopted a more favorable stance towards innovation in the crypto sector. The recent executive orders signed by the president reflect a clear effort to reshape the current regulation and stimulate the growth of the digital asset market in the United States. This pro-crypto shift marks the beginning of a new phase for the sector, that now has a more favorable environment for the development of decentralized financial technologies and the participation of large institutional investors
Executive Orders and Regulatory Overhaul
Donald Trump's second term brought a deep reconfiguration of the regulatory policy in the United States 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 that significantly affect the cryptocurrency and Bitcoin sector signed by Trump in January and represent the first concrete steps of this change. The first of them revoked Executive Order 14067 of the Biden administration, that imposed restrictions on the crypto sector and promoted the development of a Central Bank Digital Currency (CBDC). In your place, a pro-crypto policy was established, explicitly prohibiting the creation of CBDCs and establishing a "Presidential Working Group on Digital Asset Markets". Furthermore, Trump determined that all federal agencies review their regulations on crypto assets within a period of 30 to 60 days. This order also protects the right to self-custody and Bitcoin mining
The second executive order focused on the repeal of SAB 121, removing the requirement for banks and financial institutions to include custodial crypto assets in their balance sheets. This measure removes one of the main barriers for traditional financial institutions to enter the crypto market, allowing for a greater supply of custody services and products related to digital assets
CBDCs Ban
Trump's decision to explicitly prohibit 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 determines the immediate termination of any project related to these state digital currencies
This measure was widely celebrated by the crypto community, that sees CBDCs as a tool for state surveillance and government control over individual financial transactions. The prohibition reflects a political view that values financial privacy, the sovereignty of the dollar and decentralization, principles aligned with the philosophy of Bitcoin and cryptocurrencies in general
ETFs drive the market
The Bitcoin ETFs launched last year exceeded market expectations. The IBIT from BlackRock and the FBTC from Fidelity reached a combined volume of 4,5 billion dollars on the first day of trading. In just 11 months, IBIT accumulated an impressive 50 billion dollars in assets, breaking records and highlighting the growing demand for regulated products in the Bitcoin ecosystem
In the Brazilian market for exchange-traded index funds, the ten ETFs that had the highest return for investors in 2024, seven are related to crypto assets and blockchain networks, secondsurveyfrom 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 appreciation without concerns about security and storage, making the investment more accessible and attractive. ETFs are an interesting initial step, but it is always worth remembering that they do not provide access to a fundamental characteristic of Bitcoin: the individual's ability to perform their own custody. It is from self-custody that individuals can ensure their financial sovereignty.”, says Caio Leta, head of Bipa's research
The “Bitcoinization” of the Financial System
The growth of Bitcoin ETFs does not merely represent a co-optation by the traditional financial system, but also a "Bitcoinization" of this system. Products such as BTC-denominated ETFs, ETFs of companies that adopted the "Bitcoin standard" and debt securities aimed at purchasing Bitcoin are examples of this integration
The market is adapting to the logic and principles of Bitcoin, transforming your traditional dynamics. This is just the initial phase of a change that could redefine the foundations of the global financial market
