The Fintech, crypto and web3 industry is grappling with a whirlwind of developments, from high-profile pardons to regulatory shifts and geopolitical issues. At the center is President Donald Trump’s recent pardon of BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed, alongside former employee Gregory Dwyer, announced on March 28.
This move, pretty much wiping clean their 2022 guilty pleas for violating the Bank Secrecy Act, underscores a stark departure from the previous Biden administration’s hostile crypto stance.
Where Biden’s team leaned hard into enforcement—with SEC crackdowns, “regulation by enforcement” and hefty fines—Trump’s administration is signaling a friendlier embrace, aligning with his campaign promises to make the U.S. the “crypto capital of the world.”
Yet, despite these seemingly positive developments, Bitcoin and crypto prices are sliding, mirroring tech stocks more than any stable store of value, as markets reel from broader economic and geopolitical pressures.
The BitMEX pardons, confirmed by the White House, come just months after the exchange notably settled a $100 million fine for lax anti-money laundering controls.
Hayes, who served six months of home confinement, expressed a simple “Thank you POTUS,” while Delo called it a “vindication” against what he deemed politicized charges.
This clemency fits Trump’s pro-crypto narrative, bolstered by his March 7 White House summit with industry professionals like Coinbase’s Brian Armstrong and Strategy’s Michael Saylor.
There, he pledged light-touch regulations and a Strategic Bitcoin Reserve, barring the government from selling its $17 billion in seized Bitcoin.
It’s pretty much a 180 from Biden’s era, where crypto faced a lot of regulatory scrutiny, often branded a haven for illicit activity.
This shift isn’t isolated.
The FDIC and CFTC also made important announcements this past week.
Recent FDIC guidance has greenlit banks to dive deeper into crypto custody and services, a nod to mainstream adoption.
The CFTC, meanwhile, is refining its oversight of crypto derivatives, hinting at a more structured—but not stifling—framework.
These updates seem to be consistent or largely in line with discussions at the DC Blockchain Summit, where Senator Cynthia Lummis and Saylor championed Bitcoin as a national asset.
"Bitcoin is Manifest Destiny for the United States of America." My conversation yesterday with @SenLummis at the DC Blockchain Summit. pic.twitter.com/cwRAFI6g2x
— Michael Saylor⚡️ (@saylor) March 27, 2025
Lummis’ Bitcoin Act, aiming for a million-Bitcoin reserve, gained traction there, with Saylor’s Strategy—holding 2% of all Bitcoin—pushing the “digital gold” thesis.
The summit underscored crypto’s rising influence among U.S. policymakers and industry leaders, a stark contrast to its fringe status under Biden.
Although not too crypto-specific, it has now also been widely reported that Elon Musk’s xAI has acquired X for $33 billion (announced this past week).
While not crypto-related, X’s focus on payments and its role as a crypto chatter hub—with real-time price debates—has tied it to the ecosystem for many years.
Musk, now a Trump ally heading the Department of Government Efficiency, could amplify this synergy.
Still, the market isn’t showing signs of recovery. Bitcoin has dipped below $90,000, Ethereum is bleeding, and altcoins are cratering. Interestingly, this cycle has been mostly focused on Bitcoin (BTC), and altcoins just might not surge at all during this latest crypto market cycle, based on current trends.
But why? The crypto rally expected from Trump’s pro-digital asset stance is buckling under macroeconomic weight.
Weaker-than-expected U.S. data is a major issue as well for now.
Inflation remains sticky, job growth is stalling, and economic expansion is faltering—metrics that concern investors across asset classes.
The “Magnificent 7” tech stocks—Apple, Nvidia, and crew—are stumbling, dragging crypto along.
Bitcoin ETFs, once a bullish signal, are seeing outflows topping $560 million recently, per industry reports.
This tech-stock correlation suggests crypto’s “safe haven” narrative is fraying, leaving it vulnerable to the same volatility as Silicon Valley ventures.
Trump’s tariff threats aren’t helping either.
His March 25 announcement of 25% levies on cars not made in the U.S., plus tariffs on Canada and Mexico, has rattled global markets.
Analysts warn of higher consumer costs and trade retaliation, denting economic optimism.
Add the Russia-Ukraine war and Israel’s conflicts—escalating oil prices and supply chain woes—and investor sentiment is souring fast.
Gold, by contrast, is soaring to record highs above $3,100 an ounce, reclaiming its status as the ultimate safe haven.
Investors fleeing risk assets are piling in, leaving Bitcoin and tech stocks in the dust.
The crypto community is somewhat split. Some see Trump’s moves as a long-term win—easing regulatory shackles and legitimizing digital assets.
Others, like BitMEX’s Hayes in past critiques, warn of political opportunism, with reserves potentially sold off by future administrations.
For now, the market’s verdict is clear: optimism is firmly on hold.
As tariffs loom, geopolitical conflicts remain unresolved, and economic data disappoints, crypto’s Trump-fueled enthusiasm is fading. And with the first quarter of 2025 already behind us, it can be argued that we are in a bear market and there are no major indicators of any bullish moves for the months ahead.
Gold’s appeal, meanwhile, reminds us that in times of chaos, investors are comfortable with assets they perceive to be a lot less risky.