One year into President Trump’s renewed term, the crypto market faces a reality closer to a nightmare than a revolution. After courting retail investors and industry figures in 2024, the administration pushed to roll back many regulatory barriers and advanced measures such as the GENIUS Act for stablecoins and the CLARITY Act for digital asset transparency. The president also promoted meme coins and hosted private crypto dinners at the White House, signaling an unusually hands-on approach to crypto policy.
Yet the reality diverges from the hype. In 2025, Bitcoin declined about 6%, and from its October peak the price slid 35%, falling below the post-election level. Meme coins like TRUMP and MELANIA tumbled as much as 95% in value. Geopolitical tensions, trade frictions, and fiscal expansion boosted demand for gold, which rose by more than 60%, while Bitcoin—often labeled digital gold—moved in tandem with risk assets, undermining its status as a safe hedge.
Analysts note that calling Bitcoin or crypto a currency remains controversial. Even in El Salvador, which adopted Bitcoin as legal tender, its share of transactions remains under 5% of goods and services. The ecosystem’s notable success has been stablecoins, though they are not fundamentally different from digitized fiat from decades past; about 95% of “blockchain money” is centralized and permissioned, with only a few entities validating transactions.
Prominent critics like Nouriel Roubini have warned that true DeFi scale may be impossible, arguing that no government will tolerate complete transaction anonymity due to crime and illicit finance. As AML and KYC rules become mandatory, the cost advantage of private blockchain technologies is eroding, while traditional finance has improved real-time payments and settlement. The consensus among experts is that the future of money will be gradual evolution within the existing framework rather than a crypto revolution.
The GENIUS Act has drawn criticism for reviving a 19th-century free banking impulse, and the CLARITY framework continues to provoke tensions between traditional banks and crypto firms, including debates over whether stablecoins should yield interest. JPMorgan Chase CEO Jamie Dimon has publicly warned of the risks associated with crypto proposals, underscoring concerns that misreading the banking system could undermine the existing financial base. In 2026, the crypto market faced a sober recalibration, with experts cautioning that dramatic upheaval is unlikely and steady, incremental improvements are the more realistic path.
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