White House First Crypto Summit: Analysis of Policy Trends and Market Reactions

I. Background Overview

On March 7, 2025, the White House held the first-ever "Crypto Summit" in history. Prior to this, the market widely anticipated that the government would release significant positive news, such as announcing an increase in Bitcoin purchases or incorporating more cryptocurrencies into the national reserves. This expectation drove the price of Bitcoin from $80,000 to nearly $95,000, while other major cryptocurrencies also saw increases ranging from 5% to 25%.

However, the summit did not announce any large-scale coin purchase plans or substantive new policies, only reiterating its existing stance of supporting industry development and moderate regulation. This led to unmet market expectations and a noticeable correction after the meeting. Nevertheless, compared to the harsh attitude of the previous government, the significant relaxation of the current policy environment still keeps the market optimistic about the medium- to long-term prospects.

2. Evolution of U.S. Encryption Policy

1. Early stage: Focused on risk prevention.

After the 2017 ICO bubble, U.S. regulators focused primarily on combating fraud and money laundering, requiring exchanges to comply with anti-money laundering and customer identification regulations. The government mainly regulates based on the existing legal framework and has not introduced specific cryptocurrency legislation.

2. Policy Fluctuation Period

During Trump's first term (2017-2020), he was skeptical about cryptocurrency and strengthened law enforcement against ICO fraud cases. The Biden administration (2021-2024) issued an executive order on digital assets, but then increased law enforcement efforts and prosecuted several large encryption companies.

3. The sharp turn after the 2024 election

After Trump took office again, he quickly signed an executive order declaring that the U.S. would become the "global cryptocurrency capital." He revoked many previous regulatory policies, halted some lawsuits, and appointed a head of cryptocurrency affairs. The government also announced the establishment of a "strategic Bitcoin reserve," but it is limited to retaining previously confiscated Bitcoins.

3. Market Expectations Before the Summit

Before the summit, the government hinted at possibly including multiple encryption currencies in the "new U.S. cryptocurrency strategic reserve." This news quickly heated market expectations, with the price of Bitcoin rising from $84,000 to nearly $95,000. Other major encryption currencies also saw significant increases:

• Bitcoin (BTC): +13.1%
• Ethereum (ETH): +11.8%
• Ripple (XRP): +24.7%
• Solana (SOL): +18.2%
• Cardano (ADA): +15.6%

Market liquidity has significantly increased, with trading volumes and the number of outstanding contracts in derivatives also growing rapidly. However, the actual content of the executive order did not include new procurement plans, only stating that the existing Bitcoin assets would not be sold for the time being, which became the main reason for the market pullback after the Crypto Summit.

4. Key Points of the Summit

1. Involvement of government senior officials

Trump attended for only about 30 minutes, stating that "the previous administration's war on encryption has ended." The subsequent closed-door discussions were led by officials such as the Director of Crypto and AI Affairs and the Secretary of the Treasury.

2. Regulatory Tone

The government reiterated that it will promote the development of the encryption industry through "friendly legislation and light-touch regulation." Representatives from the Ministry of Finance and the Securities and Exchange Commission stated that they will prioritize industry needs but did not commit to withdrawing more lawsuits.

3. Lack of specific policies

The summit has not released any new executive orders or immediate bills, indicating that the government is still in the stage of gathering industry opinions and discussing regulatory details.

5. Market Reaction After the Summit

After the summit, the prices of major cryptocurrencies experienced a pullback:

• Bitcoin (BTC): -4.2%
• Ethereum (ETH): -7.8%
• Ripple (XRP): -9.1%
• Solana (SOL): +2.3%
• Cardano (ADA): -11.5%

The market atmosphere has shifted from optimistic expectations back to rationality, beginning to adjust for "overly high expectations." The funding rates in the derivatives market have turned neutral or slightly negative, with a decrease in open interest reflecting a weakened willingness for bullish leverage. Solana has shown a slight increase due to the listing of futures and ETFs, creating an independent market trend.

6. Long-term Outlook

Despite the short-term market pullback, the U.S. government's attitude towards encryption assets has clearly shifted to a positive stance in the long run. This may encourage more institutional investors and large enterprises to enter the market. If the government can implement specific support policies and a clear regulatory framework in the future, the market is expected to usher in a new wave of growth momentum.

The current market fluctuations are mainly a digestion of previous overly optimistic expectations, rather than a trend reversal. As the macroeconomic and regulatory environment gradually becomes clearer, the long-term development prospects of the encryption market still look promising. All parties are closely watching whether the White House can translate the discussions from this Crypto Summit into actual policies, which will become one of the key factors influencing the future direction of the market.