President Trump’s 2025 Crypto Policy is to make the US the center of digital assets in the world.
The new policy gives investors the opportunity to enter a growing crypto market that is better organized. However, industry experts have warned that investors and stakeholders need to be careful as they adjust to the new policies in a high-risk Market.
Trump’s Crypto Plan: Tax Benefits or Tight Rules?
In January this year, a new executive order showed Trump’s strong support for crypto. He canceled Biden’s Executive Order 14067, aiming to cut red tape and push for new ideas in the space. One major step was setting up the President's Working Group on Digital Asset Market, with David Sacks in charge. This team will create clear rules for things like stablecoins, blockchain systems, and even a possible U.S. reserve of digital assets.
The SEC has changed direction under its new Chair, Paul Atkins, who openly supports crypto. With Commissioner Hester Peirce leading the new “Crypto 2.0” task force, the agency now focuses on giving clear guidance instead of punishing companies after the fact. This change is important for businesses that want to follow the rules, as it lowers the chance of facing sudden or unclear penalties that were common under the previous Chair, Gary Gensler.
What will Bill S.4762 Mean For Your Staking Rewards?
At the legislative level, crypto policy leaders are pushing for reforms that offer more clarity, starting with Bill S.4762. This bill contains two widely supported proposals that the Senate is unlikely to oppose: a clear rule on taxing staking and mining rewards, and a new accounting approach for companies holding crypto.
Specifically, the bill states that Americans won’t owe taxes on staking or mining rewards until they actually sell them. This would resolve ongoing legal debates over whether rewards should be taxed when earned or only after being sold. The bill also proposes an updated accounting method that allows businesses to reflect rising crypto values, even without a sale, which is especially relevant as public companies quietly accumulate assets like Bitcoin, Ethereum, and Solana.
A third rule that crypto leaders believe might be added and voted on today is a small tax break for using crypto in tiny amounts.
This kind of tax break would let U.S. citizens skip reporting small crypto trades as income they need to pay tax on.
For example, if someone uses Bitcoin to buy a pizza, that small transaction wouldn’t be taxed the same way as selling a large amount of cryptocurrency for profit.
However, it’s not yet clear what limit would apply if the small crypto tax exemption becomes part of the Big Beautiful Bill.
A crypto policy expert noted that the limit started at $600, dropped to $200, and more recently has been around $300.
The expert said there had been numerous versions of the text and that it seemed to change almost every week. Despite these ongoing changes, crypto leaders Decrypt spoke with recently shared a clear view: although they held different opinions on which parts might be included in the Big Beautiful Bill, they all agreed that it would either pass today or not happen at all.
Companies Must Still Contend with State Regulators
Even if the Trump crypto tax policy offers clearer rules and opens more doors for crypto companies to grow and create new services, the federal government is still expected to go after crypto-related crimes like fraud, money laundering, and sanctions violations.
In addition, many firms will still have to deal with the tricky patchwork of state rules that cover crypto and other digital assets.
For instance, crypto firms running in New York will still have to follow the state’s strict “BitLicense” rules and licensing system.
California has also passed a new law, the Digital Financial Assets Law, and is now putting it into action, meaning many crypto companies there will also need to get a license.
Even if the White House softens its stance on crypto, state laws aren’t going anywhere. In many states, crypto companies will still need money transmission licenses to operate legally.
State regulators are keeping a close eye on crypto. New York’s Attorney General Letitia James has already taken action against major firms, and other states are following her lead. If Trump returns to office, state enforcement is likely to grow even stronger.
This means crypto companies must be ready for a two-front battle: relaxed federal rules on one side and tougher state oversight on the other.
A Push for Clearer Rules, But Slow Progress
Across both the White House and Congress, there's a growing push to create clearer rules for the crypto and blockchain space. The goal is to give companies more confidence to grow and innovate. But progress takes time.
New rules are being developed, but for now, crypto firms must make sure their products still follow current laws. To stay ready, they need to watch both the rules in place today and any changes that may be on the way.
And don’t expect regulators to ease off anytime soon. Licensed firms will still be expected to:
- Keep strong internal policies
- Train their teams on compliance
- Put systems in place to detect and stop wrongdoing
Even if Trump’s team loosens enforcement, the overall risks in crypto don’t just vanish. Strong compliance will remain essential.
Global Ripple Effects
The U.S. is shifting from tight crypto restrictions to a more open path, a major change from the Biden era. And while the Trump administration may welcome digital assets more warmly, the global picture is mixed.
Some countries, like Japan, the UAE, Switzerland, and Thailand, are already embracing crypto as a valid form of payment. Others, like China, are going the opposite way with total bans on private digital currencies.
India is walking a middle road. It taxes crypto profits at 30% and is developing its central bank digital currency.
If Trump goes ahead with a national Bitcoin reserve and easier crypto rules, other countries may feel the need to adjust their laws to keep up and bring in more crypto investment.
But even with the excitement, real concerns remain. Risks like hacking, tax evasion, and financial fraud still need strong rules and global cooperation. Without that, large-scale adoption by traditional finance players could hit roadblocks.
In a nutshell, the bedrock of any successful business strategy is the availability of the right regulatory body to provide the required regulations for businesses to thrive. The same is applicable to the cryptocurrency industry. As regulatory bodies continue to provide an enabling environment, it will allow these crypto companies to succeed, ensuring stability and giving them the courage to do business in any country.