Zylo Ecosystem
astronaut
Pearl
Walrus
Starknet
Pudgy Penguins
Bitcoin
The crypto market may rally this year as the US government, under Donald Trump, continues its deregulatory approach. In a recent statement, Scott Bessent confirmed that the crypto policy will continue changing this year.
Crypto Policy Shift to Accelerate in the United States
The Trump administration has made significant changes to the crypto industry over the last 12 months. It’s a trend that will accelerate in 2026.
Trump signed the Guiding and Establishing National Innovation for US Stablecoin Act. It’s popularly known as the GENIUS Act. This act helps to regulate stablecoins, which have become popular, with their combined market capitalization rising to over $308 billion.
Trump also appointed Paul Atkins to become the head of the Securities and Exchange Commission (SEC). In his tenure, Atkins has worked to remove some of the roadblocks that companies in the crypto industry faced.
For example, he has ended numerous lawsuits that were filed under Gary Gensler. Some of these lawsuits were filed against companies such as Coinbase, Ripple Labs, Uniswap, Immutable, and Aave.
Most recently, he announced that the SEX will launch a crypto technology exemption. It’s a temporary regulatory relief framework designed to foster blockchain innovation while maintaining oversight.
In a Fox Business interview, Scott Bessent, the Treasury Secretary, noted that the crypto policy will accelerate this year. Precisely, he noted that the Senate will likely pass the closely-watched CLARITY Act. It seeks to improve the regulatory standards in the United States.
The act aims to separate the roles of the SEC and the Commodity Futures Trading Commission (CFTC). It’s a move that will remove the friction that has existed for years.
It will define digital commodities and grant the SEC oversight over their spot markets. On the other hand, the act will maintain oversight into the investment contracts and securities-like offerings.
Crypto advocates believe the new rules will boost innovation. They say the rules will reduce issues that have existed for years.
Donald Trump to Name New Fed Chair
At the same time, Bessent noted that the president will replace Jerome Powell with a new Federal Reserve chairman. That chair will be more aligned with the crypto industry.
Some officials under consideration, including Rick Rieder, Kevin Hassett, and Kevin Warsh, have voiced support for the industry. They made these points in recent statements.
The officials have also hinted that they will be aligned with Donald Trump’s policies on interest rate cuts. Trump has continued to push the bank to cut rates to 1%. It’s a move that he believes will supercharge the economy by bringing borrowing costs downwards.
The cryptocurrency market often performs well when the Fed adopts a low-interest-rate regime. Bessent has also talked about other things he expects will boost the crypto market this year. For example, he has hinted that the US will deliver the biggest tax refund this year.
Additionally, he is urging Congress to approve a $2,000 stimulus check. He aims to do this using the money the government is raising from Trump’s tariffs. A combination of tariff dividends, falling inflation, and tax refunds would help to stimulate the crypto market rally.
The main risk is clear. The House of Representatives and the Senate must be involved in some of these policies. This is especially true for stimulus checks.
The appetite for such a policy is low in Congress, as it will likely lead to higher inflation. Additionally, the US will need to borrow more money, as the tariff revenue will not be sufficient.
Most importantly, the Supreme Court is currently considering the legality of these tariffs. There is a high chance that it will strike them down soon.
Policy progress could be hard to pass this year. It is an election year, and Republicans are widely expected to lose the House of Representatives and possibly the Senate.
Additionally, likely, any crypto policy will not translate to a rally. For example, cryptocurrency prices crashed in 2025 even as the regulatory environment improved.
