Full Breakdown
Crypto Adoption Stalls Despite Presidential Promotion and Market Decline
7/27/2026, 8:40:41 AM
Policy Shifts and Market Decline
In January 2024, federal regulators voted to allow ordinary investors to trade spot-Bitcoin exchange-traded funds (ETFs) alongside stocks. A 2025 executive order by President Donald Trump called for federal regulation of digital currencies and announced a national cryptocurrency stockpile. Trump’s family businesses earned more than $1.4 billion from crypto projects in 2025, according to an annual financial disclosure. Earlier in 2026 the Labor Department issued a proposed rule to ease the inclusion of crypto and other alternative assets in retirement plans.
Meanwhile, Bitcoin’s price fell from roughly $125,000 in October 2025 to about $65,000 in late July 2026, a drop that analysts say has discouraged many investors.
Adoption Data and Investor Profiles
A July 9 report from the Urban Institute, based on a survey of over 3,000 adults conducted in January, found that 17 % of American adults have ever owned crypto, while only 9 % currently do. The Federal Reserve’s May 2025 survey showed 10 % of adults used cryptocurrency that year, down from a 2021 peak of 12 %. By contrast, roughly 62 % of Americans own stocks.
Among current owners, 45 % cite diversification, 37 % cite interest in new technologies, and 27 % believe digital currencies represent the future. Former owners—about 8 % of respondents—primarily stopped because they were losing money. Two-fifths of crypto investors hold less than $250 in digital assets; owners are predominantly male, skew young, and Asian Americans are more likely to own crypto than other racial groups.
Official Statements & Responses
The Urban Institute’s report recommends that banks, exchanges, and other crypto providers “provide clear, standardized disclosures” about crypto risks. Morningstar portfolio strategist Amy Arnott has argued that Bitcoin’s price often moves with the stock market and that its intrinsic value is hard to determine, suggesting a portfolio weighting of 5 % or less.
Verbatim Quotes
- “There’s not a big wave of new crypto investors,” — Alex Carchidi, contributing cryptocurrency analyst at The Motley Fool
- “People still view it as a more specialized asset class,” — Amy Arnott, a portfolio strategist at Morningstar
- “By definition, that means that people are selling,” — Caleb Silver, editor in chief of Investopedia
- “There are many investors who bought crypto over the last 15 years who were simply chasing price,” — Caleb Silver, editor in chief of Investopedia
These statements illustrate the limited wave of new investors, the perception of crypto as a specialized asset class, and concerns that price declines are prompting sales and that many investors were merely chasing price.
