Analysis of the Impact of the First Cryptocurrency Summit in the United States

Background Overview

On March 7, 2025, the White House hosted the first-ever Crypto Assets summit in history. Prior to this, the market widely anticipated that the government would release significant positive signals, such as announcing large-scale purchases of Bitcoin or incorporating more Crypto Assets into the national reserves. This expectation drove the price of Bitcoin from $80,000 to nearly $95,000, and other mainstream Crypto Assets saw increases ranging from 5% to 25%.

However, the summit did not announce any large-scale coin purchasing plans or substantial new policies, only reiterating its stance of supporting industry development and moderate regulation. This led to unmet market expectations, resulting in a noticeable correction after the summit, with Bitcoin dropping by 3% to 5%, and other mainstream coins retreating by 5% to 10%.

Nevertheless, compared to the strict stance of the previous government, the current relaxation of the policy environment still keeps the market optimistic about medium- and long-term development. To fully understand the impact of this summit, it is necessary to review the regulatory path and policy evolution of the U.S. government in the crypto space.

The Evolution of the U.S. Government's Attitude Towards Crypto Assets

Early Stage: Focused on Regulation and Risk Prevention

After the ICO bubble in 2017, U.S. regulators focused primarily on combating fraud, money laundering, and other issues, strengthening law enforcement efforts and requiring exchanges to comply with AML/KYC regulations. The government mainly relies on the existing legal framework to regulate Crypto Assets and has not introduced specific legislation.

Attitude swings and stricter law enforcement

During Trump's first term (2017-2020), he was skeptical of Crypto Assets and strengthened law enforcement against ICO fraud cases. Although the Biden administration (2021-2024) issued an executive order on digital assets, law enforcement has intensified, leading to lawsuits against several large crypto companies, increasing market concerns about legal risks.

Policy changes after the 2024 elections

In January 2025, after Trump took office again, he signed an executive order declaring that the United States would become the "global Crypto Assets capital." He revoked many previous regulatory policies, halted some lawsuits, and appointed David Sacks as the head of artificial intelligence and Crypto Assets affairs. In late February, Trump also signed an executive order to establish a "strategic Bitcoin reserve," but it was limited to retaining the Bitcoin previously confiscated by the government, with no additional purchases made.

Market Expectations Before the Summit

Prior to the summit, the Trump administration hinted that it might include multiple Crypto Assets in the "new American Crypto Assets Strategic Reserve." This signal has fueled market expectations, with the price of Bitcoin rising from $84,000 to nearly $95,000, and other major coins also showing significant increases.

The market originally expected the government to announce more substantial favorable policies, such as the formal purchase of Bitcoin or other mainstream coins using the federal budget. Under this expectation, market liquidity significantly increased, and trading volume along with the number of outstanding contracts in derivatives grew rapidly. However, the actual executive order did not include any new procurement plans, only stating that "there will be no sale of the currently held Bitcoin assets," which became one of the main reasons for the market correction after the summit.

Summit Live

The first Crypto Assets summit held on March 7 attracted more than 20 key figures from the US encryption industry. Although it was promoted as "setting the tone for US encryption regulatory policy for the next four years," no clear new policies or large-scale coin purchase plans were ultimately announced.

1. Trump made a brief appearance, stating that "the previous administration's war on Crypto Assets is over," emphasizing that regulatory certainty will be provided at the legislative level.

2. The government reiterated that it will promote the development of the Crypto Assets industry through "friendly legislation and light-touch regulation," but no new executive orders or immediate bills have been issued.

3. Mainstream media focuses on Trump's willingness to provide regulatory certainty for the Crypto Assets market through congressional legislation, believing that there has been a significant improvement compared to the previous situation.

Overall, this summit has set the general direction, but lacks specific details, and the short-term impact on the market is more about the disappointment brought by "expectations being falsified."

Market Trends After the Summit

After the summit, the prices of Bitcoin and most mainstream coins corrected, mainly due to the market digesting the gap between expectations and reality. Bitcoin experienced a short-term pullback but did not break down; Ethereum and XRP followed the overall market downturn; other mainstream coins mostly remained in a state of fluctuation or correction. In the derivatives market, funding rates turned neutral or slightly negative, and the open interest decreased, reflecting a weakened bullish leverage sentiment.

Although there has been a short-term pullback, many institutions and long-term investors remain optimistic about the potential for the U.S. to introduce more specific legislation or guidelines in the context of easing regulatory risks in the medium to long term. After a period of market calm, if the government announces favorable specific policies, there is still an opportunity to regroup buying momentum.

Conclusion and Outlook

The first White House Crypto Assets Summit did not introduce any major new policies, but the U.S. government clearly expressed support for "light-touch regulation to encourage industry development." In the future, the U.S. may take a more proactive approach in formulating laws or regulatory mechanisms, allowing the market to no longer remain in a state of ambiguity. If the legislation is successfully implemented, it will encourage large financial institutions or technology companies to invest.

Compared to the strong repression of the previous government, the current regulatory risks are relatively lower. Many institutional investors have become more tolerant towards Crypto Assets, which may expand their digital asset businesses. In the long term, "national reserves" and "government openness" are often important factors driving bull market cycles.

In the short term, the market is entering a wait-and-see period, with investors awaiting clearer policy details or favorable macroeconomic conditions. From a medium to long-term perspective, as long as the US government acknowledges the legal status of crypto assets and remains committed to establishing clear regulatory rules, institutional funds and the developer ecosystem are still expected to continue flowing in. When macroeconomic conditions and regulatory uncertainties gradually clarify, the market may usher in a new wave of growth momentum. The current fluctuations are more about digesting previous excessive expectations rather than a reversal of the trend. All parties are paying attention to whether the White House can formalize the opinions from this summit and implement them into a new regulatory framework, which will become one of the key driving forces for the subsequent market developments.