Trumpcoins, Growth, Regulatory Battles Defined Crypto This Week

Political favor, institutional acceptance and regulatory scrutiny are increasingly colliding to redefine the digital asset landscape.

At the heart of this transformation is the ongoing embrace of digital assets by U.S. President Donald Trump, whose administration has moved swiftly to position, or re-position, America as a global leader in the financial technology.

As blockchain and cryptocurrency continue to work toward the heart of traditional finance, 2025 is shaping up to be a defining year for investors, businesses and regulators alike — one that could either cement crypto’s place in the global financial system or expose the industry’s lingering vulnerabilities.

Either way, the era of digital assets operating in a regulatory gray zone appears to be ending. What comes next will depend on how the industry, and the policymakers shaping its future, navigate this new reality.

Institutional Adoption, Global Expansion 

Beyond politics and regulation, 2025 is already proving to be a year of significant institutional and geographic expansion for the global crypto sector.

In Latin America, cryptocurrency adoption is accelerating, with PYMNTS reporting that Bybit is making inroads into taking crypto payments mainstream in Brazil with its new payment solution. According to a Monday (Jan. 27) press release, the Bybit Pay solution is live in Brazil and integrates with the Brazilian Pix instant payment system developed by the Central Bank of Brazil. This move enables users to make payments in both fiat currency and cryptocurrency.

The launch of Bybit Pay would also seem to align with Latin America’s growing adoption of digital finance technologies and, in particular, Brazil’s emergence as a digital banking and payments superpower. As PYMNTS Intelligence has found in “How The World Does Digital: A Global Benchmark Of Consumer Digital Transformation,” Brazil leads the world in its digital engagement metrics.

Elsewhere in Latin America, it’s all systems go for Coinbase to launch in Argentina after regulators in that South American nation gave their approval for the U.S.-based cryptocurrency exchange to begin operating there, the company said Tuesday (Jan 28).

But perhaps the most striking development in institutional adoption comes from the Czech National Bank (CNB), which is reportedly planning a multi-billion-euro bitcoin purchase. If confirmed, the move, announced Wednesday (Jan. 29), would make the Czech Republic the first Western nation to hold bitcoin as part of its reserves — a landmark shift in how central banks view digital assets.

At the same time, blockchain technology is gaining traction within traditional financial markets. Ondo Finance said Tuesday (Jan. 28) that it will bring tokenized U.S. Treasuries to the XRP Ledger (XRPL). The collaboration will offer institutional investors access to Ondo Short-Term U.S. Government Treasuries (OUSG), which are backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and can be instantaneously minted and redeemed at any time using the Ripple USD (RLUSD) U.S. dollar-denominated stablecoin.

The tokenization of RWAs has captured the imaginations of various players across payments, finance and commerce because it has the potential to make assets more liquid, accessible and efficient, PYMNTS reported last April.

During the most recent Eurogroup meeting in January, the European Central Bank (ECB) provided an update on its exploratory work on tokenization and blockchain’s role in streamlining the wholesale settlement of transactions, reporting to the ministers present that the technology is capable of solving inefficiencies, reducing risks, and unlocking new opportunities within wholesale trade. This maturation of the cross-border landscape could ultimately redefine how growth-focused treasurers and CFOs manage global transactions, liquidity and risk.

At the same time, and perhaps unsurprisingly, Elon Musk is reportedly considering using blockchain technology at the Department of Government Efficiency (DOGE), per a Saturday (Jan. 25) report. Musk, head of the newly created agency, has floated the idea of using a digital ledger to monitor federal spending, make payments, secure data and manage government buildings.

Trump’s Crypto Pivot 

Donald Trump’s return to the White House has given the crypto industry its most powerful political advocate yet. Just days into his second term, America’s first “crypto president” issued an executive order, titled “Strengthening American Leadership in Digital Financial Technology,” touching on many of the sector’s wants, needs and concerns.

Now, however, Trump is leaning into digital assets — not just as a policy matter, but as a business opportunity. His media company, Trump Media & Technology Group (TMTG), on Wednesday (Jan. 29) announced plans to expand into financial services, including cryptocurrency-related offerings.

News broke the same day that websites selling products with President Donald Trump’s brand are now accepting the controversial $TRUMP meme coin as payment.

The newfound support has also prompted shifts in institutional investment strategies. Per a Sunday (Jan. 26) report, venture capital firm Andreessen Horowitz is even shutting down its U.K. office amid a new focus on the U.S. crypto sector following Donald Trump’s election.

The investor opened the U.K. branch in 2023, its first outside the U.S., amid regulatory pressure in the U.S. The move back could underscore a belief that the U.S. is once again a more favorable jurisdiction for blockchain innovation — at least under the current administration.

Separately, U.S.-based cryptocurrency exchange Kraken now lets users make payments with their accounts. Kraken Pay allows users to choose the crypto or fiat currency in their accounts that they want to send and transmit that payment instantly, according to a Wednesday (Jan. 29) company blog post.

Regulatory Scrutiny Continues 

While political support is boosting industry confidence, crypto firms are still facing regulatory headwinds. Governments across the globe are tightening compliance standards, cracking down on illicit activity, and enforcing penalties against firms accused of skirting financial regulations.

French authorities recently launched a probe against Binance, the world’s largest cryptocurrency exchange, over allegations of money laundering. The investigation adds to Binance’s growing list of legal troubles, which include lawsuits and regulatory actions in multiple jurisdictions.

Meanwhile, cryptocurrency exchange KuCoin will exit the U.S. market for at least two years after its operator, Seychelles-based Peken Global Limited, pleaded guilty Monday (Jan. 27) to one count of operating an unlicensed money transmitting business. Peken will also pay monetary penalties totaling more than $297 million, while two of its founders, Chun (Michael) Gan and Ke (Eric) Tang, will step down from any role in KuCoin’s management or operations.

U.S. Attorney Danielle R. Sassoon said in the release that KuCoin avoided implementing required anti-money laundering (AML) policies for years.

“As a result, KuCoin was used to facilitate billions of dollars’ worth of suspicious transactions and to transmit potentially criminal proceeds, including proceeds from darknet markets and malware, ransomware and fraud schemes,” Sassoon said. “Today’s guilty plea and penalties show the cost of refusing to follow these laws and allowing unlawful activity to continue.”