President Donald Trump’s inauguration and their return to the white house have escorted a major shift in the landscape of the United States Regulatory compliance. In the first two weeks of his administration.
On January 20, 2025, Trump signed a Presidential memorandum entitled “Regulatory Freeze Pending Review“, marking the beginning of a massive deregulation initiative aimed at unbinding economic prosperity.
Trump has signed a series of executive orders and presidential communications that point out significant changes in federal policy. The various sectors of the federal policy include deregulation, digital assets, and environmental areas.
The cornerstone of the initiative deregulation Executive order was from 10-1. It’s a deregulation Executive order that requires federal agencies to identify at least 10 existing rules, regulations, or any guidance documentation for reversal to propose new 1.
This forceful goal is built on Trump’s previous success in his first term. In the previous term of his administration, he achieved a 5.5 – 1 deregulation ratio from his initial target of 2- 1.
Key aspects of the new regulatory approach
- For the fiscal year 2025, there should be a mandate cost reduction approach. The incremental cost for all new regulations including repeal regulations must be less than zero.
- There should be standardized measures of regulations. The director of the Office of Management and Budget will ensure the standardized measures of regulations.
- Trump aims to stop the Biden Administration which is a job-killing and inflation-driving regulatory offense. It imposed $1.7 trillion of cost to the american people.
- All executive departments and agencies are directed to refrain from adopting or issuing new rules until approved by Trump Appointed Department or agency heads.
This regulatory overhaul is the result of Trump’s administration which is perceived as the regulation that stops American entrepreneurship.
This overregulation rule crushes the small businesses and results in reducing the consumer’s choice, discouranig innovations, and violating the liberties of American Citizens.
The administration argues excessive regulations contribute to higher costs of living including increased energy prices.
The impact and effect of all the changes have been far-reaching, affecting the economy in various sectors. According to a report of 2025, this year is anticipated as the “year of Regulatory shift”.
This shift can be in different areas of technology, data risks, investor protections, risk management, and governance.
In the era of Digital Finance, Trump has taken steps to support the growth of cryptocracy and blockchain technology. On January 23rd, 2025, he signed an executive order on “Strengthening American Leadership in Digital Financial Technology”.
This order was established by a working group on Digital Asset Markets. It Rescinded the Biden Administration’s Executive Order 14067 which called the studies on Digital Asset Regulation.
The new order also prohibits agencies’ action to establish Central Bank Digital Currencies. It marks a clear departure from the previous administration’s approach.
These changes in the regulatory landscape pose various challenges. The American Bankers Association notes the environment in Washington, DC after the 2024 election.
It will be the biggest factor that imposes a regulatory change in 20256. The key issues include
- There is growing pressure for a national standard to manage consumer privacy with complicated laws.
- The possibility of federal legalization through some version of the SAFE Banking Act remains a topic of interest.
- Different Federal courts are expected to rule on cases of regulatory overreach. In 2025, they could impact the scope of recently issued regulations.
As businesses undergo this shifting regulatory landscape, they must be adaptable and vigilant. The Diligent 2025 Global Compliance Outlook report reveals that 41% of directors admit to requiring a better understanding of the regulatory environment. Cybersecurity, climate, and supply chain regulations pose particular challenges due to their evolving nature.
The regulatory landscape in 2025 under the Trump administration is characterized by a strong push for deregulation.
It focuses on reducing costs, supporting digital financial innovation, and rolling back Biden-era regulations. While these changes aim to revive economic growth and reduce bureaucratic burden.
They also pose new challenges for businesses in terms of compliance and adaptation to continuous regulatory changing environments.
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