A Blueprint for the Trump Administration’s First 100 Days in Crypto Policy: Mitigating Illicit Finance While Driving Innovation

As the new US administration embarks on its first 100 days, cryptocurrency policy stands at a pivotal crossroads. The Executive Order, “Strengthening American Leadership in Digital Financial Technology,” and the establishment of the SEC Digital Asset Task Force lay the foundation for a comprehensive approach to digital asset regulation. 

The administration now has the opportunity to advance regulatory clarity, curb illicit finance, and position the US as a global leader in blockchain innovation. With public blockchains offering unparalleled transparency and stablecoins reinforcing US economic dominance, this administration has the chance to drive innovation while strengthening national security.

The national security imperative: Addressing illicit finance in digital assets

Cryptocurrencies present a paradox: They enable efficiency, transparency, and financial inclusion while simultaneously providing opportunities for illicit actors engaged in ransomware, fraud, and sanctions evasion. According to TRM Labs’ Crypto Crime Report, the digital asset ecosystem continues to be exploited, despite ongoing efforts by law enforcement.

• In 2024, total crypto transaction volume reached USD 10.6 trillion, with illicit activity comprising USD 45 billion (0.4%) — the lowest proportion on record.
• Ransomware attacks surged to 5,635 reported incidents, with USD 2.2 billion stolen in hacks, including USD 800 million linked to North Korea.
• Crypto-facilitated drug sales increased by 20% year-over-year, reaching USD 2.4 billion.
• Cartels and transnational criminal organizations are leveraging blockchain-based payment networks to launder illicit drug proceeds, with operations spanning from Mexico to Asia.

The administration must prioritize enforcement actions that disrupt illicit financial networks while ensuring that legitimate crypto businesses have the clarity needed to operate within the law. This balance is critical for both national security and economic competitiveness.

Public blockchains: A strategic asset for law enforcement

‍Unlike traditional financial systems, public blockchains provide a unique advantage in countering illicit finance. The transparency of blockchain transactions enables law enforcement and regulatory agencies to track, disrupt, and prosecute bad actors in real time. There are many forms of intelligence: signals intelligence (“SIGINT”), human intelligence (“HUMINT”) and, now, national security agencies and law enforcement are leveraging blockchain intelligence (“BLOCKINT”) as part of the intelligence toolbox. BLOCKINT offers:

• Real-time monitoring: Law enforcement can trace funds through immutable ledger records, identifying patterns linked to illicit finance.
• Global visibility: Public blockchains operate across jurisdictions, allowing investigators to track illicit flows worldwide.
• Behavioral analytics: AI tools like TRM’s Signatures® detect unique patterns associated with financial crime, aiding in the identification of illicit activity.

Through the strategic use of BLOCKINT, law enforcement agencies have already achieved major successes, including enforcement actions in recent major cases:

• Colonial Pipeline ransomware attack (2021): Investigators recovered USD 2.3 million in Bitcoin ransom payments.
• Bitfinex hack (2022): US authorities seized USD 3.6 billion in stolen Bitcoin by tracing funds through multiple wallets.
• Hydra Darknet Market (2022): The seizure of hundreds of millions in cryptocurrency disrupted a key hub for illegal transactions.
• IRS-CI drug proceeds seizure (2024): Agents confiscated USD150 million in cryptocurrency, marking a record-breaking operation.

Financial crime units, law enforcement, and national security and intelligence agencies are increasingly leveraging blockchain intelligence to track illicit financial flows, disrupt criminal networks, and safeguard economic and national security interests. These tools provide unparalleled visibility into illicit transactions, enabling investigators to trace, freeze, and recover illicit funds with unprecedented precision.To stay ahead of evolving threats, the new administration must prioritize equipping these agencies with the cutting-edge technology, training, and resources necessary to combat financial crime in the digital age. Strengthening blockchain intelligence capabilities will not only enhance enforcement actions against cybercriminals, sanctions evaders, and fraudsters — but also reinforce the broader integrity of the global financial system.

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Regulatory clarity: A foundation for innovation and security

‍The lack of clear digital asset regulations has driven US innovation offshore, where businesses face jurisdictions with weaker compliance standards. This creates regulatory gaps that malign actors exploit for illicit finance. The Trump administration’s Executive Order provides an opportunity to reverse this trend by ensuring that US digital asset firms operate under clear, enforceable rules.Key areas for regulatory focus include:

1. A unified framework for digital assets: The administration must direct agencies to develop cohesive, technology-neutral guidelines that avoid redundant or conflicting regulations.
2. Stablecoin oversight to reinforce US dollar dominance: Dollar-backed stablecoins provide a critical advantage for US financial leadership. Clear regulatory standards will enable their growth while reducing risks of misuse for illicit finance.
3. Industry engagement to strengthen compliance: Collaborating with business leaders and blockchain intelligence firms will ensure that regulatory frameworks both foster innovation and enhance enforcement capabilities.

The president’s Working Group on Digital Asset Markets, established under the Executive Order, has a pivotal role to play in shaping these policies within the administration’s first 100 days.

Blockchain intelligence as a force multiplier for national defense

‍Blockchain intelligence is transforming how national security and defense agencies combat illicit finance. Through BLOCKINT, agencies are able to track and disrupt financial flows linked to adversaries such as North Korea, Russia, and Iran.

• North Korea: Over USD 3 billion in cryptocurrency has been stolen by DPRK-linked cyber actors since 2017. These funds support sanctions evasion and weapons proliferation.
• Iran: In 2023, 70% of funds handled by Iranian exchanges came from outside Iran, primarily via global crypto platforms. Iran’s use of TRON and USDT has enabled sanctions evasion at scale.
• Russia: Russian-speaking ransomware groups accounted for 69% of all crypto ransomware proceeds in 2023, funneling illicit funds through sanctioned exchanges like Garantex.

By expanding partnerships between government agencies and blockchain intelligence firms, the administration can enhance national security operations and prevent illicit financial flows.

The role of stablecoins in US economic leadership

‍Dollar-backed stablecoins represent one of the most powerful financial innovations of the digital age. Their potential to strengthen the US dollar’s dominance cannot be overstated. Stablecoins provide benefits like:

• A global payment rail: Faster and more transparent than traditional banking systems.
• Financial inclusion: Access to financial services for individuals in underbanked regions.
• Financial crime investigation: Increased traceability, transparency and immutability.

With regulatory clarity, stablecoins could cement the dollar’s dominance in the digital economy. And without the leadership of the US and global democracies, competitors such as China’s Digital Yuan could erode the dollar’s influence in global finance.

The first 100 days: Priorities for action

‍To establish US leadership in digital financial technology, the administration must focus on four key priorities:

1. Implement the Executive Order: The President’s Working Group on Digital Asset Markets should produce clear recommendations on digital asset policy that provide legal clarity, encourage innovation, and leverage blockchain technology to mitigate illicit finance and national security threats.
2. Empower the SEC Digital Asset Task Force: This newly formed enforcement body must have the resources to provide regulatory clarity, encourage innovation, and protect consumers. 
3. Strengthen public-private partnerships: Expanding collaborations between blockchain intelligence firms, cryptocurrency services, and law enforcement will enhance monitoring and mitigate risk.
4. Expand the use of blockchain intelligence for national security: Agencies should increase reliance on BLOCKINT tools like TRM Labs to detect and disrupt illicit finance networks.

The first 100 days of the Trump administration will be pivotal in shaping the future of digital asset policy. The Executive Order on Digital Financial Technology lays out a vision for American leadership in blockchain and digital finance — but execution is what matters now. By focusing on enforcement against illicit finance, providing clear regulatory guidance, and leveraging blockchain intelligence, the administration has an opportunity to both safeguard financial integrity and drive innovation.

Global implications

‍And this isn’t just a US issue — it’s a global one. Without decisive action, bad actors will exploit regulatory gaps, and adversarial jurisdictions will fill the void left by uncertainty. The digital asset ecosystem is evolving rapidly, and jurisdictions that strike the right balance between security and innovation will set the global standard. Further, regulatory clarity is not just about compliance — it’s about ensuring that builders and responsible actors operate within transparent frameworks that foster trust, stability, and competitiveness.

What happens in these first 100 days will define the future of digital finance. The administration has a chance to lead, to reinforce financial security, and to make sure that innovation doesn’t move to the shadows, but remains in an ecosystem where it can thrive. The time to act is now.