In a significant financial move that coincided with Donald Trump’s inauguration on January 20, 2025, World Liberty Financial (WLFI), a decentralized finance (DeFi) project linked to the Trump family, invested over $100 million in various cryptocurrencies. This bold step into the digital asset market not only underscores the Trump administration’s interest in blockchain technology but also signals potential shifts in U.S. cryptocurrency policy.

The Scale of Investment

World Liberty Financial, with notable involvement from members of the Trump family including Donald Trump himself as “Chief Crypto Advocate,” made substantial purchases in several key cryptocurrencies.

The investments included $47 million in both Ethereum (ETH) and Wrapped Bitcoin (WBTC), with additional allocations of $4.7 million each in Aave (AAVE), Chainlink (LINK), TRON (TRX), and Ethena (ENA). This strategic acquisition was announced by Donald Trump Jr. on the X platform, emphasizing the historic nature of the day as Donald Trump took office for his second term.

Market Reaction and Expectations

The crypto market had been buzzing with speculation about Trump’s potential impact on digital assets. Despite the absence of direct crypto policy announcements in Trump’s inaugural speech or executive orders, the market was stirred by WLFI’s massive crypto purchase. This move was interpreted by some in the crypto community as a sign of continued or even increased support for cryptocurrency under the new administration, although immediate executive actions did not materialize as anticipated. The absence of any specific crypto policy mention in Trump’s first-day actions led to a cooling in Bitcoin’s price, which had hit a record high the previous day but saw a decline as the market awaited further policy cues.

Implications for Crypto Policy

Trump’s previous campaign promises included making the U.S. the “crypto capital” and easing regulatory constraints on the industry, which had been notably stringent during the Biden administration. The involvement of the Trump family in WLFI and such a significant investment in crypto could be seen as a precursor to more crypto-friendly policies. Industry observers noted that this could lead to a “golden era” for cryptocurrencies, with potential initiatives like establishing a Bitcoin strategic reserve or encouraging blockchain technology integration into federal operations.

Ethical and Regulatory Concerns

The investment move by WLFI sparked a mix of reactions, with some praising it as a celebration of blockchain’s mainstream acceptance in the U.S., while others critiqued it as a potential conflict of interest, especially with the Trump family’s direct stake in the venture. Ethical watchdogs and some in the crypto community voiced concerns over the transparency and the motivations behind such a significant investment right before Trump’s inauguration, suggesting it might be more about personal profit than policy support.

Broader Impact on the Crypto Ecosystem

The crypto purchases by WLFI are not just a statement of confidence in digital assets but could also set a precedent for how private entities linked to political figures engage with emerging technologies. This could encourage broader adoption and investor confidence, particularly if followed by favorable legislative and regulatory changes. However, it also raises questions about the intersection of politics, finance, and technology, especially in terms of governance and oversight in the rapidly evolving crypto landscape.