SEC vs. Trump: Will Crypto Regulation Chaos Push BTC Past $90K or Will It Trigger a Crash?

Democrats Elizabeth Warren and Maxine Waters have demanded SEC Chair Mark Uyeda preserve records on World Liberty Financial (WLFI), a Trump-family-backed crypto firm launching the USD1 stablecoin crypto. The lawmakers allege the SEC may be softening enforcement to benefit Trump’s financial interests, citing dropped investigations into crypto donors. With Trump’s TRUMP memecoin surging 300% and WLFI’s stablecoin crypto launching pre-election, this confrontation threatens to politicise crypto regulation entirely. Will the SEC maintain independence or become a tool for political crypto profiteering?  

WLFI Donations Spark Ethics Debate

The April 2 letter accuses Trump of creating an “unprecedented conflict of interest,” noting WLFI executives donated $2M to his 2024 campaign. Warren and Waters highlight that the SEC dropped cases against three crypto firms post-donations, including one probing unregistered securities. This parallels Trump’s abrupt shift from calling Bitcoin a “scam” to embracing crypto, culminating in the USD1 stablecoin crypto launch on Ethereum and BNB Chain.  

WLFI’s political ties run deep. Its CEO hosted a Mar-a-Lago fundraiser where Trump promised to “free crypto from Biden’s SEC.” Meanwhile, the TRUMP memecoin—created by a MAGA-linked developer—pumped 40% after Waters’ letter, showcasing how political narratives now directly manipulate crypto valuations. The stablecoin crypto’s whitepaper hints at future Treasury integrations, raising fears of presidential self-dealing. Let’s take a look at Bitcoin Price Prediction to see how this development impacts the price of BTC and its connection to crypto regulation.

Bitcoin Price Prediction for April 3, 2025 

The 15-minute chart of BTC/USDT clearly rejects the resistance level near $88,000, leading to a rapid decline toward the support range of $82,500. Bitcoin is now trading at about $83,567, trying a bounce from this level. If bullish momentum persists, BTC could seek the $85,500 resistance level. Notwithstanding, falling under $83,000 would cause a further fall back toward support. Although it has lately reached both overbought and oversold levels, the RSI is now at 45.99, which shows middle-of-the-road momentum. 

Chart 1: Analysed by vallijat007, published on TradingView, April 3, 2025

This implies that the main support and resistance lines have been driving price changes. Meanwhile, the MACD indicator is still in negative territory, and the histogram is starting to suggest a likely bullish crossover. When the MACD line crosses above the signal line, it may justify a short-term uptrend. As BTC’s next move will depend on whether it breaches major levels or encounters renewed selling pressure, traders should be on the lookout for more verification amid shifting crypto regulation policies.

Crypto at a Crossroads: Politics, Power, and the Battle for Regulatory Control

Warren’s demand for SEC transparency tests the agency’s independence, while Trump’s stablecoin crypto gambit could turn crypto into a partisan profit engine. With crypto regulation now deeply intertwined with U.S. politics, every move by the SEC could either stabilize or disrupt the market. A lack of clarity on crypto regulation creates uncertainty for both institutional and retail investors, making it essential to monitor government actions. Crypto’s future hinges not on technology but on whether it can survive Washington’s power games. The future of Bitcoin totally depends on how the USA treats cryptocurrency and its evolving crypto regulation policies.