Crypto Politics: Trump, Congress, and the Blockchain State
Crypto Politics: This week, crypto turned from code to campaign. US President Donald Trump openly embraced crypto, saying on live TV, “I’ve become a fan of digital assets… It’s an industry, and America leads it.” He framed crypto not just as an economic tool, but as a strategic national advantage, arguing that without US leadership, China would’ve dominated the space.
Congress echoed this tone. The House passed the Blockchain Deployment Act (HR1664), aiming to boost blockchain integration into US industries, pending Senate approval. Simultaneously, the GENIUS Act and CLARITY Act are set to hit the Senate in July, marking what the White House’s crypto advisor, David Sacks, called “a big month.”
In parallel, Trump announced a new trade deal with China, details unknown, and warned that tariffs may return by July 9 unless new agreements are reached. If no deal is made, we’re looking at:
- 50% tariffs on EU imports
- 30% tariffs on Chinese goods
- 10% global import tax
The EU says it’s “ready” for a trade deal. Markets remain cautious.
But not everyone is cheering. A new proposed law, the COIN Act, seeks to block Trump and top officials from promoting crypto while in office, or two years after.
Meanwhile, Cynthia Lummis confirmed that Congress is crafting clear legislation to end the legal fog around digital assets.
Economic Signals: The Fed, Inflation, and Real Estate
The US economy hit conflicting signals:
- GDP shrank by 0.5% in Q1 2025, worse than the expected -0.2%.
- Core PCE inflation in May came in at 0.2% MoM and 2.7% YoY, both above expectations.
These data points complicate the Fed’s next moves. Though 90.8% odds favor a rate cut in September, internal pressure is mounting. Trump slammed Jerome Powell, accusing him of being “always late,” and hinted at replacing him. Vice President Vance echoed this, criticizing Powell for not cutting despite lower inflation.
Powell defended himself, stating that Bitcoin and crypto are “maturing and going mainstream.” Meanwhile, the Fed formally allowed banks to serve crypto clients, an unexpected green light.
Elsewhere, Fannie Mae and Freddie Mac were instructed to consider crypto assets when assessing mortgage eligibility. This could change how Americans buy homes.
Global Regulation and Adoption
Governments around the world moved quickly:
- Turkey rolled out strict crypto controls, including withdrawal delays and stablecoin transaction caps.
- EU Commission plans to enable cross-border stablecoin compatibility under MiCA, promoting interoperability.
- UAE taxis in Abu Dhabi started accepting AE Coin, a stablecoin backed by the dirham.
- Bhutan revealed its mining efforts since 2020 have accumulated 12,000 BTC, worth ~$1.3B, around 40% of its GDP.
Market Overview: What’s Moving, What’s Not
According to Grayscale’s Q2 2025 Crypto Sector Report, the overall crypto market cap they track exceeded $3 trillion, with 261 assets categorized into 6 sectors.
Performance by Sector:
- Currency sector (led by Bitcoin): +30%
- Financial services and AI sectors: Moderate gains
- Entertainment and tech services: Declines
Grayscale also updated its Top 20 Digital Assets:
Notable additions:
- Avalanche (AVAX)
- Morpho (MORPHO)
Full list includes:
- Bitcoin, Ethereum, Solana, Sui, Hyperliquid, Chainlink, Uniswap, Aave, Bittensor (Tao), Ethena, Virtuals, Story Protocol, Aero, Jito, Maple, Helium, Grass, and Geodnet.
These assets remain high-risk and volatile, and the list is not investment advice, just a market snapshot.
AI & Crypto: A Merging Frontier
Grayscale dedicated a sector to AI-related tokens, 20 digital assets in total, indicating growing investor interest in the intersection of artificial intelligence and crypto.
Platforms like HyperEVM saw user activity surge by +53.8% in active addresses, while transactions rose +17.5% in 24 hours.
Behind the Bitcoin Curtain: Whales in Action
If Bitcoin’s price feels stuck, it’s not accidental. Analyst Markus Thielen explained that while demand grows (even Coinbase is buying BTC weekly), large wallets, “whales”, are slowly offloading ETF and corporate treasury BTC. It’s a balancing act: keep the price from exploding or crashing.
The US government, meanwhile, reportedly has a “BTC accumulation plan.”
Warnings and Scams
- Fake Hyperliquid ads on Google trick users into signing wallet-draining transactions. Always double-check URLs.
Institutional Moves & ETFs
- Invesco and Galaxy Digital submitted S-1 filings for a Solana ETF.
- Trump’s Truth Social also filed for a BTC and ETH ETF.
- Metaplanet plans to reach 210,000 BTC by 2027 and already holds over 11,111 BTC.
Sui Network Momentum
- $SUI outpaced Solana in stablecoin transfers this month.
- 21Shares partnered with Sui to offer investment products tailored for institutions.
This is the latest chapter in Sui’s growing ecosystem push.
Geopolitics: Crypto Amid War and Peace
Trump claimed to have brokered:
- A ceasefire between Iran and Israel after 12 days of conflict
- A new trade deal with China
- An upcoming peace deal to end the Gaza war in two weeks (with Netanyahu’s support)
He positioned these diplomatic moves as both peace-building and market-calming.
Final Notes
Markets this week looked quiet, but in reality, a lot moved under the surface. Policy changed. Narratives shifted. Institutional walls softened. Governments hinted, backed, or banned. And whales? They’re still swimming. Silently.
The second half of 2025 is shaping up to be chaotic, strategic, and very digital.This article does not contain financial advice. Always do your own research (DYOR). For deeper insights, visit blog.millionero.com. When you’re ready, trade spot and perpetuals on Millionero, built for smart, confident traders.