Trump’s crypto policy fuels sanctions evasion, undermining the dollar’s dominance

According to Jayati Ghosh, Professor of Economics at the University of Manchester, writing in the Bangkok Post, the Trump administration has vigorously pushed for deregulation of cryptocurrencies and promoted dollar-pegged stablecoins through the GENIUS Act, while refusing to develop central bank digital currencies (CBDCs). Yet these policies are producing a self-defeating effect: in 2025, illegal cryptocurrency transaction volumes surged over 160% year-on-year, and countries including Russia, Iran, and North Korea are leveraging cryptocurrencies on a large scale to circumvent U.S. economic sanctions. Iran, for instance, has integrated cryptocurrencies into its toll-collection system for the Strait of Hormuz, with estimated daily revenues reaching as high as $36 million; Russia, meanwhile, is using cryptocurrency exchanges to bypass asset-freeze orders and finance military procurement.