Trump's Influence on the Encryption Industry and His Family's Layout in the Web3 Field

The Potential Impact of Trump's Presidency on the Encryption Industry

Since December, the "Trump Trade" has sparked heated discussions in the market. For the encryption industry, the focus has shifted to the extent to which Trump fulfills his campaign promises. During the transition period, Trump quickly nominated several key positions, and these nominees will shape the encryption policies of the United States and even the world over the next four years. Regardless of the strength of policy implementation, it indicates that the industry is facing new opportunities and policy uncertainties.

According to the American political system, the presidential cabinet mainly consists of two parts: formal cabinet members who require Senate confirmation and cabinet-level officials who do not need confirmation. Currently, the agencies influencing the policies of the encryption industry in Trump's cabinet include the Office of Artificial Intelligence and Cryptocurrency Affairs. This agency is primarily responsible for formulating the regulatory framework for the encryption industry and liaising with the SEC, CFTC, and Congress, among others. The cryptocurrency advisory committee under it is composed of 24 CEOs from encryption companies, providing recommendations for policy-making.

Trump's promised new policies include: making the United States the global encryption capital, stopping the crackdown on cryptocurrencies, halting the development of CBDC, establishing a strategic Bitcoin reserve, replacing the SEC chairman, preventing the sale of government-held Bitcoin, using Bitcoin to resolve U.S. debt, formulating a comprehensive encryption policy, and establishing an encryption advisory committee, among others. In terms of personnel appointments, Trump has fulfilled some of his promises, such as replacing the SEC chairman and establishing the encryption advisory committee.

For the encryption industry, this means that the previously strict policies may be relaxed, while more comprehensive legislation will promote the mainstreaming of the industry.

The Trump Family's Web3 Project Layout

The shift in Trump's attitude towards encryption during his second term has greatly boosted the industry. In addition to government officials' involvement, the Trump family has also begun to invest in the encryption industry, providing a forward-looking basis for future regulatory easing.

In early 2025, the MEME coin TRUMP launched by Trump became the focus of the industry, with a market value exceeding 30 billion USD within a day. This not only reflects that Trump’s support for the encryption industry may exceed expectations but could also become an important support for the rapid normalization and deregulation of the encryption industry. Additionally, this has created competitive pressure on centralized exchanges.

Another important project of the Trump family is World Liberty Financial (WLFI). Although the project statement has no direct relationship with the Trump family, Trump's three sons are all referred to as "ambassadors," and their close allies also hold key positions in the project. WLFI has made comprehensive legal preparations to circumvent current regulations through various means.

WLFI is positioned as a DeFi project, primarily built on Aave for decentralized lending. From the tokens purchased, it can be seen that, in addition to BTC, Ethereum, and stablecoins, the focus is mainly on DeFi-related areas. The team composition also mostly has a DeFi background. These signs indicate that the Trump family holds a positive attitude towards the DeFi field, which may suggest that there will be more lenient policies in this area in the future.

The Impact of the Trump Family Project on the DeFi Track

Trump's issuance of MEME coins brings immense imagination space to the market, pointing to a relaxed regulatory environment for industry development over the next four years. The operation of the WLFI project shows that the Trump family hopes to create a sustainable project.

In light of the recent DeFi tax regulations proposed by the U.S. Internal Revenue Service, it can be inferred that systematic legislative regulation targeting DeFi may be introduced in 2025. Although it may not be as strict as previous proposals, the compliance of DeFi will become an important initiative in 2025, including KYC, anti-money laundering, and counter-terrorism financing measures.

From an optimistic perspective, the WLFI project indicates that the Trump family is bullish on the growth potential of the DeFi sector. Its comprehensive design of compliance architecture also suggests that after Trump takes office, regulatory relaxation and comprehensive compliance may advance in parallel, which is beneficial for DeFi to enter the mainstream.

In summary, Trump's support for the encryption industry is relatively clear, but there is still uncertainty regarding the specific degree of regulatory easing. The market will continuously adjust its expectations around the new policies. At least before the 2027 U.S. midterm elections, the resistance to Trump's policy implementation is significantly reduced, which is a relatively favorable key period for DeFi and the entire encryption industry.