Introduction
Against the backdrop of the Trump administration’s evolving encryption policy, the future encryption industry will undoubtedly face a new wave of development. One of the core elements of this wave is Decentralized Finance (DeFi), and the policy support from the Trump administration will provide more innovative space and capital liquidity for the industry. Under this trend, multiple important DeFi protocols and projects are gradually coming to the forefront, becoming new highlights in the market.
Trump and His Family’s Cryptocurrency Strategy
Trump and his family’s layout in the cryptocurrency industry has evolved from early NFT releases to the current World Liberty Financial (WLFI) project. This project focuses on decentralized finance (DeFi) platforms, providing innovative financial solutions. The WLFI project not only reflects its layout of encrypted assets in the purchase of tokens such as ETH, AAVE, and LINK but also represents Trump’s core direction in promoting cryptocurrency development. To some extent, the project can lead the US government to a new approach to cryptocurrency regulation, especially with the passage of the “21st Century Financial Innovation and Technology Act,” providing legitimacy and transparency for the decentralization and functional tokens in the cryptocurrency industry.
Trump Cabinet Members’ Cryptocurrency Holdings
Several cabinet members nominated by Trump, including David Sax and Robert Kennedy, are staunch supporters of cryptocurrencies. In particular, David Sax not only holds a large amount of Bitcoin and Solana but has also invested in multiple cryptocurrency projects through his venture capital company. Robert Kennedy also purchased Bitcoin during his campaign, explicitly expressing support for cryptocurrencies and even proposing a policy to support the US dollar with hard assets like Bitcoin.
The entry of these cryptocurrency-friendly figures can not only drive the US government’s cryptocurrency policies but also further promote the rapid development of the cryptocurrency industry.
Bitcoin BTC & Solana SOL Latest Price Trends Today
Currency
Price
24H Change
24H Volume
Market Cap
7-Day Price Trend
BTC
Bitcoin
$102,361.58
-2.4%
$96.89 billion
$20236.5 billion
SOL
Solana
$210.27
-3.42%
$71.2 billion
$1006.2 billion
Trump’s Incoming Cryptocurrency Policy Boost
With Trump soon to take office, the following favorable policies are expected to be implemented:
Bitcoin Strategic Reserve: Trump intends to emulate the US strategic oil reserve by establishing a national Bitcoin reserve to strengthen the US’s dominant position in the global cryptocurrency field.
Legalization of Cryptocurrency: Normalizing cryptocurrency will become an important topic under the Trump administration, with the expectation of a more relaxed policy environment for cryptocurrencies and related technologies.
Cryptocurrency ETFs and Debt Plans: With Trump’s push, the US may approve more cryptocurrency ETFs, further strengthening the dollar’s pricing power in cryptocurrency assets and driving funds into the cryptocurrency market.
Policy Support for DeFi: The Trump administration may create a more friendly environment for DeFi protocols and support the development of lending platforms like AAVE and derivative trading platforms like Hyperliquid.
DeFi Market Resurgence
With the arrival of the US interest rate cut cycle, DeFi has once again become a focal point for funds. The interest rate cut has led to a decrease in returns on traditional financial products, while DeFi, with its high returns and decentralized characteristics, has attracted more investors. For example, AAVE, as a leader in DeFi lending protocols, has launched the V4 version, further optimizing liquidity management and cross-chain functionality, showing strong market recovery momentum. At the same time, the derivative trading platform Hyperliquid is also rapidly rising, becoming one of the strongest DeFi dark horses in 2024 with its technical innovation in decentralized perpetual contract trading and efficient market share integration.
Conclusion
With the support of Trump and his cabinet members, the future cryptocurrency market will usher in unprecedented policy benefits, with DeFi being one of the main driving forces for rapid development. Projects like AAVE, Hyperliquid, and others in the DeFi space have shown strong market potential, and the comprehensive legalization of cryptographic assets and the introduction of related policies may further propel the robust development of the DeFi ecosystem. Concurrently, Trump administration’s strategic layout in the cryptocurrency field, including Bitcoin BTC reserves and the launch of cryptocurrency ETFs, will provide strong support for the long-term development of the cryptocurrency industry. The resurgence and innovation of DeFi, as well as the support of exchanges and platforms for related tokens, will be important trends in the future cryptocurrency market. With the dual benefits of relaxed policies and capital inflows in the cryptocurrency industry, the future DeFi market may experience explosive growth, becoming a new pillar of the digital economy.
