Hey Edge readers,
President Trump is now officially the first truly crypto-native occupant of the White House. From a slew of executive orders geared toward building U.S. dominance in digital finance, to launching his own DeFi project and memecoins (yes, memecoins), 47 has certainly thrust crypto into center stage. Let’s unpack what this all might mean for crypto and DeFi.
Stay sharp. 🫡
- The Exponential team
Crypto under Trump: A new era for DeFi?
2025 marks a historic year for crypto with Donald Trump’s inauguration as the first crypto-native U.S. president. Trump wasted no time, with several executive orders already signed in the first few days aimed at making the U.S. the global leader in crypto and DeFi. While the policy shifts are already boosting optimism in the space, they also raise critical questions about the future of crypto under a president who’s as much an entrepreneur as a policymaker.
Crypto’s mainstream moment
Trump’s executive orders to bolster the crypto and DeFi industry signal a seismic shift from the prior administration. The most headline-grabbing initiatives include plans to establish a Bitcoin Strategic Reserve and a National Digital Asset Stockpile, which could potentially include ETH and SOL. These moves could position the U.S. as the de facto leader in global digital finance, driving institutional adoption, regulatory clarity, and mainstream acceptance.
Fintechs days are numbered
Trump’s pro-crypto presidency could spell the beginning of the end for traditional fintech. DeFi is a truly zero-to-one innovation, and with regulatory clarity paving the way, fintech’s reliance on intermediaries and closed ecosystems may soon look archaic.
Simplified compliance frameworks and improved fiat-on-chain rails could remove barriers for everyday users, making DeFi products as intuitive as legacy fintech. If successful, these changes could solidify DeFi’s dominance, as its core innovations—self-custody, composability, and borderless transactions—are fundamentally better than their Web2 counterparts.
A conflict of interest brewing?
Yet, Trump’s direct involvement in crypto ventures complicates the narrative. Just ahead of his inauguration, he launched the TRUMP memecoin, which has already amassed billions in market cap, followed by the MELANIA token for his wife. Meanwhile, his DeFi project, World Liberty Finance, has been actively buying tokens like ETH, WBTC, AAVE, and LINK. While these ventures highlight his vested interest in the industry, they also raise ethical questions about conflicts of interest.
Will the president’s private crypto dealings influence federal policies? For instance, could executive orders be shaped to favor assets he holds? While Trump’s track record in business is undeniable, the mingling of his personal financial stakes with the responsibilities of public office introduces risks that could undermine trust in the administration’s crypto-friendly agenda.
Final thoughts
There’s no denying the immense potential for growth under Trump’s leadership. The executive order calling for the U.S. to become the “world capital of crypto” signals a level of commitment unseen in prior administrations. Coupled with the explosive rise of DeFi and AI agents, Trump’s policies could bring unprecedented capital and innovation to the space.
At the same time, the administration must navigate uncharted territory, addressing potential conflicts of interest and ensuring that crypto’s decentralization ethos isn’t compromised by centralized government initiatives. Whether Trump’s presidency will ultimately be a net positive for the space will depend on how effectively the administration separates personal interests from national policy.
In the news 🗞️
- Trump’s crypto order sets the stage for U.S. digital asset leadership. President Donald Trump signed an executive order directing agencies to establish crypto-friendly policies, review regulations, and evaluate creating a national digital asset stockpile. The order bans work on central bank digital currencies (CBDCs), revokes President Biden’s 2022 crypto framework, and establishes a working group chaired by venture capitalist David Sacks.
- AI agents in DeFi rely on real-time data to ensure safe operations. Accurate information is crucial for AI agents, as errors or data manipulation can have serious consequences. Solutions like Pyth’s Oracle Integrity Staking (OIS) look to address these risks by aligning financial incentives with data accuracy. With more safeguards like OIS in place, it pushes DeFi closer to surpassing traditional finance in speed and efficiency.
- Private credit tokenization is emerging as DeFi’s next big yield opportunity. It unlocks access to traditionally illiquid assets while boosting transparency for investors. Institutions are increasingly entering RWA lending pools, with over $660M in loans originated through platforms like Clearpool. Tokenized treasuries are also gaining traction as an anchor or floor for DeFi yield, offering a blend of safety, yield, and onchain accessibility.
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