A New Era for Crypto Regulation: The Trump Administration’s Shift in Approach

A New Era for Crypto Regulation: The Trump Administration’s Shift in Approach

According to an article by the Ballard Spahr firm, the opening months of 2025 have brought sweeping changes to crypto regulation under the Trump Administration. Executive actions and regulatory shifts suggest a deliberate move toward relaxing enforcement and reducing oversight in the cryptocurrency markets. 

President Trump’s January 23 executive order set the tone by prioritizing regulatory clarity and establishing an inter-agency task force to assess and potentially rescind existing rules. Shortly thereafter, the SEC launched its own Crypto Task Force, emphasizing regulatory clarity over enforcement. A string of decisions followed, including the SEC’s closure of investigations into OpenSea and Robinhood, dismissal of charges against Coinbase, and a declaration that memecoins would not be treated as securities. However, the administration’s deregulatory stance has not eliminated enforcement entirely, as evidenced by OKX’s February 24 guilty plea for operating an unlicensed money business.

While the administration appears intent on easing crypto regulations, the article says the crypto industry will unlikely become a legal free-for-all. The SEC’s shifting priorities suggest focusing on fraud and anti-money laundering enforcement rather than compliance with registration requirements. Private litigation against crypto exchanges and issuers also remains a significant risk, serving as a potential counterweight to reduced federal oversight. 

Organizations operating in crypto should stay attuned to evolving regulatory expectations, particularly regarding consumer protection, financial crime compliance, and potential legislative shifts. Despite a hands-off federal approach, legal and compliance risks persist, requiring robust internal controls and proactive risk management strategies.