Trump’s State of the Union Address Suggests No Interest Rate Cuts and Ignores Cryptocurrencies

US President Donald Trump gave State of the Union Address That lasted nearly two hours on Tuesday — the longest in U.S. history — in which he touted economic gains, warned Iran against pursuing nuclear weapons, and defended his tariff agenda after a showdown before the Supreme Court.

However, in the discourse addressing taxation, artificial intelligence, housing and healthcare, digital assets were completely absent.

All the Trumps were there, but not the cryptocurrencies

This omission is striking. All of Trump’s children attended, including sons Donald Jr. and Eric, who have been heavily involved in cryptocurrency projects such as… World Liberty Financial And many more token launches.

The president himself has repeatedly promised to make the United States “the crypto capital of the planet.” None of this entered the title.

Rate chaos and sticky inflation keep the Fed on its toes

For cryptocurrency markets, the most influential signals have been macro, rather than legislative.

Trump’s description Judgment of the Supreme Court He called the emergency tariffs “deeply regrettable” and vowed to keep them under alternative legal authority, insisting that “action by Congress will not be necessary.”

But the proposal quickly turned into chaos. Trump first announced a replacement rate of 10%, then revised it to 15% days later. However, official documents show that the lower rate came into effect on Tuesday without a directive to raise it. The European Union suspends the ratification of the summer trade agreement on Monday; India postponed the planned talks.

Trump repeated his claim that the tariffs could “substantially replace” income taxes. Economists call this unreasonable. The federal government collected $2.4 trillion in income taxes by 2024, but took only about $300 billion in fees — and now must recover about half of that under the court ruling. Also, US importers pay tariffs, not foreign governments.

As for inflation, Trump has stated that core inflation has fallen to 1.7% by the end of 2025. The reality is more complex. The Fed’s favorite index – the core PCE index – accelerated to 3% in December, well above the 2% target.

With inflation subdued and rate policy unresolved, the Fed is widely expected to keep interest rates steady for the foreseeable future. It looks like three-quarter point cuts That was introduced at the end of last year It’s the last one for a while. For risk assets, including cryptocurrencies, the higher rate environment persists.

Artificial intelligence attracts attention, but cryptocurrencies do not

Although he did not mention cryptocurrencies, AI had a dedicated segment. Trump announced a “Taxpayer Protection Commitment” that would require tech companies to build their own power plants for data centers, acknowledging that the grid “will never be able to handle” the increased demand.

The work of the First Lady was also highlighted Melania Trump in Artificial Intelligence Legislation – an indication that AI policy is more prominent on the administration’s agenda than regulation of digital assets.

Conclusions

Trump’s record-setting speech was a midterm campaign speech built on economic optimism. But for crypto participants, the points are clear: no regulatory moment for the digital asset, despite the president’s family being removed from the industry, the unresolved tariff turmoil that increases macro uncertainty, and a Fed sitting on chronic inflation. Conditions affecting risk assets are unlikely to change soon.