Trump Admin Repeals Rules, Eases Crypto Regulation in Major Policy Shift

The Trump administration has rapidly dismantled several crypto regulations implemented during the Biden presidency, marking a significant shift in U.S. digital asset policy. Within weeks of taking office, officials repealed rules that restricted banks from holding digital assets and eliminated requirements for special permission for crypto-related activities like custody services and stablecoin reserves.

Additionally, the Federal Deposit Insurance Corporation (FDIC) has scrapped a Biden-era rule requiring banks to report their crypto plans and associated risks. These swift regulatory changes could potentially resolve the banking access issues that plagued many crypto companies during what critics called “Operation Chokepoint 2.0” – when numerous digital asset firms lost their banking relationships.

Reversed Crypto Regulations

The Trump administration has systematically dismantled key components of the previous administration’s crypto regulatory framework, creating a more industry-friendly environment. The following regulations and policies have been formally reversed:

Executive Orders and Policy Frameworks

1. Biden’s Executive Order 14067 – This cornerstone of the previous administration’s crypto policy has been explicitly rescinded by Trump’s executive order issued on January 23, 2025.

2. Treasury’s Framework for International Engagement on Digital Assets – This framework, which guided international crypto policy under Biden, has been formally revoked.

3. CBDC Development Prohibition – Unlike Biden’s directive that prioritized Central Bank Digital Currency development, Trump’s executive order explicitly prohibits federal agencies from pursuing CBDCs, characterizing them as threats to “the stability of the financial system, individual privacy, and the sovereignty of the United States”.

Banking Regulations

4. SEC’s Staff Accounting Bulletin 121 (SAB 121) – This bulletin effectively prevented banks from holding cryptocurrencies. It has been repealed and replaced with SAB 122, removing significant barriers to banks offering crypto custody services.

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5. OCC Letter 1179 – This guidance required banks to seek the Office of the Comptroller of the Currency’s permission before engaging in crypto-native activities like custodying cryptocurrency or holding stablecoin reserve deposits. It has been replaced with Letter 1183, removing these requirements.

6. FDIC’s FIL-16-2022 – This Federal Deposit Insurance Corporation guidance required FDIC-supervised institutions to notify the agency of their intent to engage with crypto and provide risk assessments. This has been formally rescinded, removing reporting requirements.

Law Enforcement Approach

7. DOJ Prosecution Guidelines – The Department of Justice has instructed federal prosecutors to cease targeting virtual currency exchanges, mixing services, and offline wallets for users’ actions or unintentional regulatory breaches.

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8. National Cryptocurrency Enforcement Team – This specialized DOJ team, established in 2022 to investigate crypto-related crimes, has been disbanded.

SEC Cases Dropped or Paused

The Securities and Exchange Commission has dramatically reversed course on numerous enforcement actions initiated under the previous administration. The following high-profile cases have been formally dropped or paused:

Exchanges and Trading Platforms

1. Coinbase – The SEC formally dismissed its lawsuit against the largest U.S. cryptocurrency exchange on February 27, 2025. The case had alleged Coinbase operated as an unregistered securities exchange and broker.

2. Binance – On February 10, 2025, the SEC and Binance jointly requested to pause their ongoing litigation while awaiting new rules from the crypto task force.

3. Kraken – The SEC has concluded its investigation into this major cryptocurrency exchange.

4. Gemini – On February 28, 2025, the SEC closed its investigation into the Winklevoss-owned crypto exchange.

5. Robinhood – The SEC has dropped its investigation into this popular trading platform’s crypto activities.

DeFi and Web3 Services

6. Uniswap Labs – The SEC has dropped its investigation into this decentralized exchange protocol.

7. ConsenSys/MetaMask – The SEC agreed to drop its lawsuit targeting the popular wallet tool MetaMask and its parent company ConsenSys.

8. OpenSea – The SEC has dropped its investigation into this major NFT marketplace.

Other Crypto Companies and Individuals

9. Justin Sun/Tron – The SEC and Sun jointly requested to pause the 2023 wash trading case as they “explore potential resolution”.

10. Yuga Labs – The SEC has concluded its investigation into the creator of Bored Ape Yacht Club NFTs.

11. DRW – The investigation into this trading firm has been concluded.

Creation of New Regulatory Structures

In place of previous regulations, the Trump administration has established new frameworks for crypto oversight:

1. President’s Working Group on Digital Asset Markets – Chaired by David Sacks as the Special Advisor for AI and Crypto, this group is tasked with developing a comprehensive federal regulatory framework governing crypto assets within 180 days.

2. SEC Crypto Task Force – Led by Commissioner Hester Peirce, this newly established unit is responsible for developing a “comprehensive and clear regulatory framework for crypto assets” and overseeing non-fraud-related crypto cases.

3. National Crypto Asset Stockpile Evaluation – The administration is evaluating the creation of a national stockpile of digital assets derived from lawfully seized cryptocurrencies.

Broader Regulatory Shifts Underway

The Department of Justice has announced the shutdown of its crypto crime unit as part of the administration’s efforts to clarify and relax crypto regulations. With Paul Atkins expected to be confirmed as the new SEC Chair, further changes in digital asset regulation seem likely.

These actions contrast with the early days of Trump’s first administration, which showed initial promise for crypto regulation but ultimately delivered what many experts considered more performative than substantive changes. The current approach appears more decisive, with concrete regulatory rollbacks already implemented.

While the policy changes may appear scattered, collectively they signal a major shift in the U.S. approach to crypto regulation, potentially making building in the crypto space easier and safer. Industry observers note that these early moves could just be the beginning of a broader regulatory overhaul for digital assets.

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