March Crypto Review
John Barry | Wed Apr 02 2025
March Crypto Recap: Regulatory Wins Overshadowed by Market Declines and Tariff Concerns
March was a disappointing month for cryptocurrency price performance, marking the fourth consecutive month of declines. The top 100 cryptocurrencies fell 17.5% in December 2024, -6% in January, -28.25% in February, and another -16.25% in March.
Despite the poor price action, March brought several positive regulatory developments in the United States. President Donald Trump followed through on key campaign promises, including the dismissal or settlement of major U.S. legal cases involving cryptocurrency. These actions were widely welcomed by the crypto industry.
However, optimism was overshadowed by rising geopolitical and economic concerns. Most notably, the U.S. officially implemented a series of tariffs in March, following the threats made in February. Many fear this could escalate into a global trade war. As a result, both crypto and traditional markets have been skittish in response to the uncertainty surrounding global trade dynamics.
Tariffs Implementation:
Canada and Mexico: On March 4, 2025, the U.S. enacted 25% tariffs on all imports from Mexico and on Canadian goods, excluding oil and energy products, which are taxed at 10%. These measures aim to reduce trade deficits and address concerns over border security and drug trafficking. Both Canada and Mexico have announced retaliatory tariffs.
China: Effective March 4, 2025, the U.S. increased tariffs on all Chinese imports to 20%, intensifying the ongoing trade dispute between the two nations.
Steel and Aluminum: On March 12, 2025, the U.S. imposed a 25% tariff on all steel and aluminum imports, aiming to bolster domestic production. This action eliminated previous exemptions and mandated that to qualify for duty-free status, steel must be "melted and poured" and aluminum "smelted and cast" in the U.S., preventing tariff circumvention.
Automobiles: On March 26, 2025, President Trump announced a 25% tariff on all imported cars, set to begin on April 3. This move is intended to boost domestic manufacturing and generate tax revenue.
In Summary: U.S. Presidents often take their most aggressive — and sometimes controversial — economic actions during the first year of their term. History shows that short-term pain in Year 1 is often accepted if it leads to long-term benefits by Year 4, when voters are more focused. This strategy appears to be playing out now with Trump's renewed tariff policies. While these trade restrictions may contribute to near-term volatility, the administration’s long game is aimed at reshoring manufacturing and driving stronger domestic economic growth — trends that could ultimately benefit U.S.-centric digital asset strategies.
Positive Developments:
Establishment of a Strategic Bitcoin Reserve: On March 6th, President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve. This initiative consolidates approximately 200,000 bitcoins seized in various proceedings, positioning them as strategic national assets. The reserve, likened to a "digital Fort Knox," underscores the administration's commitment to integrating digital currencies into the national financial strategy.
White House Crypto Summit: On March 7th, President Trump hosted the first White House Crypto Summit, bringing together officials, lawmakers, and industry leaders to discuss the administration's strategic vision for digital assets. This event underscores the government's commitment to fostering a crypto-friendly regulatory approach.
Paul Atkins advocates for Cryptocurrency: On March 27th, President Trump's nominee for SEC Chair, Paul Atkins, expressed his intentions to prioritize digital assets. During his confirmation hearing, Atkins advocated for a rational regulatory foundation for cryptocurrencies, signaling a departure from the previous administration's more stringent stance.
SEC actions:
On March 3, Kraken announced that the SEC staff had agreed in principle to dismiss its lawsuit against the exchange, with no admission of wrongdoing, no penalties, and no changes to its business. The SEC sued Kraken in November 2023 for allegedly offering unregistered securities, a case that the exchange fought in court.
On March 4th, Yuga labs announced that the SEC had officially closed its investigation into the company, ending a three-year investigation focused on its NFT offerings. The decision may be a significant development in the ongoing debate over whether non-fungible tokens (NFTs) should be classified as securities. The SEC has not commented on this.
On March 25th, Ripple Labs reached a settlement with the SEC, agreeing to pay a reduced fine of $50 million over allegations of selling unregistered securities. This resolution concludes this very high-profile case.
On March 25th, the SEC announced its investigation into Immutable had been dropped. Immutable received a Wells notice in November 2024, in one of Gary Gensler’s last actions.
FDIC Guidance for Banks: On March 28th, The Federal Deposit Insurance Corporation (FDIC) rescinded previous guidance requiring prior approval for banks engaging in crypto-related activities. The new guidance clarifies that FDIC-supervised institutions may engage in permissible crypto activities without obtaining prior approval, facilitating greater integration of cryptocurrencies into the banking sector.
Themes from Early 2025 Still Shaping the Market
For the fourth consecutive month, cryptocurrencies traded lower. Cryptocurrencies ranked Bullish and Very Bullish outperformed, however in March this just meant when down in value less that other categories.
On the Fundamental ranking side, Cryptocurrencies ranked highest declined less than other Fundamental groupings with cryptocurrencies ranked lowest going down the most in price.
Memecoin Slaughter Continues Memecoins which have underperformed since early November continued brutal five-month pattern. A minor change in March is that the larger cap Memecoins did not go down as much as the lower cap Memecoins: Dogecoin -19%, Shiba Inu -7.5%, Pepe -7.5%, Official Trump -24%, Bonk -21.5%, Floki Inu -28%, Dog Wif Hat -33%, Brett -21%, Mog Coin -46%, ai16z -59%.
AI Tokens Continue to underperform - Virtuals -46%, ASA -29%, Near Protocol -18%, Internet Computer -18%, Render -11%.
Exchange Tokens Continue to Outperform - Relative strength continues with centralized exchange tokens: Cronos +34%, Gate Token 6.5%, WhiteBit Token +6%, OKB +6%, BNB +3%, KuCoin -3%, Leo Token -4%.
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Disclaimer
This article is for informational purposes only and does not constitute financial, investment, or technical advice. Always consult a qualified professional when making decisions related to cryptocurrency security or wallet setups. The views expressed herein include collaborative input and do not necessarily reflect the opinions of Quantify Crypto.