The last crypto crash didn’t happen because there were too many rules. It happened because there were barely any. Back in 2022, crypto giants treated the market like a game board. Risky bets, shady leverage, and zero accountability made them billions until it all fell apart.
Companies like Terraform, FTX, and Celsius went down in flames, leaving ordinary investors broke. Fast forward to today. Trump’s win has the crypto industry popping champagne. Bitcoin prices have surged nearly 40%, brushing against $100,000. The market cap has jumped by over $1 trillion.
The president, once a critic of crypto, is now its loudest cheerleader. He’s promised to make the U.S. the “crypto capital of the planet.” But with promises of deregulation and industry-friendly policies, skeptics can’t help but wonder if Trump’s crypto revolution is setting the stage for another collapse.
The push for less regulation
The industry spent over $100 million on the election—almost half of all corporate political spending. It seems to be paying off. Reports say Trump is letting crypto insiders pick the next chair of the Securities and Exchange Commission (SEC).
Gary Gensler, the current SEC chair and a proud crypto hater, plans to step down before Trump takes office. The president had said publicly he’d fire Gensler on day one.
Elon Musk, Trump’s ally and crypto enthusiast, has joined the fight for deregulation. He took to his X platform (formerly Twitter) to call for the “deletion” of the Consumer Financial Protection Bureau (CFPB), an agency designed to protect consumers from financial scams.
According to Elon, the U.S. has “too many duplicative regulatory agencies.” His comment got cheers from crypto fans who see government oversight as the enemy of innovation.
Of course, the billionaire’s influence in the crypto industry doesn’t stop with tweets. Dogecoin, the meme coin he’s championed, has skyrocketed 150% since Trump’s election victory. Why? Because “DOGE” is now shorthand for the “Department of Government Efficiency,” Elon’s new agency.
Trump’s personal ties to crypto
Trump’s sons are involved in World Liberty Financial, a crypto venture that stands to benefit from favorable regulations. Critics say this creates a conflict of interest. Trump’s policies could directly enrich his family while manipulating the market.
And it’s not just his family. Crypto titans are backing Trump with both money and influence. The $100 million they funneled into the election wasn’t charity. They want a return on their investment, starting with lenient rules and friendlier regulators.
If Trump delivers, it could turn the U.S. into a haven for crypto innovation—or a playground for unchecked greed.
The stakes are higher now than in 2021. Back then, crypto was largely isolated from traditional finance. Its crashes didn’t get far beyond the market. That’s not the case anymore. The SEC’s recent approval of Bitcoin exchange-traded funds (ETFs) has tethered crypto to the global financial system.
BlackRock’s Bitcoin ETF has already attracted $48 billion, drawing in hedge funds, retirement accounts, and institutional investors.
This integration makes the market more vulnerable. A crypto collapse today would likely affect banks, pensions, and the global economy itself.