Trump Grants Full Pardon to Silk Road Founder Ross Ulbricht

Uldricht’s pardon was one of many of Trump’s campaign promises.Meanwhile, the SEC  launched a dedicated crypto task force that will be led by Hester Peirce to establish more regulatory clarity. Additionally, the price of Dogecoin (DOGE) surged after the launch of Elon Musk’s Department of Government Efficiency (DOGE) website. However, the website does not mean smooth sailing for the department as it still faces legal scrutiny over transparency concerns.

Ross Ulbricht Pardoned by President Trump

US President Donald Trump has granted a full pardon to Ross Ulbricht, the founder of the infamous darknet marketplace, Silk Road. Ulbricht spent 12 years in prison, and his supporters, including some well known people in the cryptocurrency community, advocated for years for his pardon. 

The pardon was announced on the Truth Social platform, and Trump stated that the decision was made in honor of Ulbricht’s mother and the Libertarian Movement, which strongly supported his presidential campaign. He described Ulbricht’s initial sentence of 40 years plus two life terms as “ridiculous.”

(Source: Truth Social)

Ulbricht was arrested in 2013 and convicted in 2015 for operating Silk Road, a platform that facilitated the anonymous exchange of goods, including illegal items, using Bitcoin. The platform played a big role in Bitcoin’s early adoption but also drew a lot of legal scrutiny. Trump’s decision is part of his campaign promise to pardon Ulbricht on his first day in office. However, some people were still rather disappointed when Trump prioritized pardons for those connected to the January 6 Capitol attack.

The pardon also came after a public appeal from US Senator Rand Paul. He argued that Ulbricht’s sentence was disproportionately harsh compared to others involved in Silk Road operations. Paul specifically referred to the case of Matthew Verran Jones, a high-ranking drug dealer on the platform. Jones received a far lighter sentence of six years. This fueled arguments from Ulbricht’s supporters who believed that he was unfairly vilified and very excessively punished.

Throughout the years, Ulbricht consistently contested claims that he was the sole creator and operator of Silk Road, and pointed out that he inherited the platform from its original developer. In a 2013 Forbes interview, he claimed that his involvement was limited to continuing the work of his predecessor, who initially conceptualized the use of Bitcoin and Tor for anonymous transactions. Despite these claims, Ulbricht still became a polarizing figure as some called him a visionary and others were not happy with his role in facilitating illicit trade.

Silk Road was among the first platforms to integrate Bitcoin, and it played a huge role in its rise during 2011, when the cryptocurrency reached a then-record price of $32. Amir Taaki and billionaire investor Tim Draper credited Ulbricht’s work with advancing Bitcoin’s prominence. Taaki even referred to Ulbricht’s imprisonment as “the ultimate sacrifice,” especially when considering just how his contributions laid the groundwork for the crypto ecosystem’s growth.

During his incarceration, Ulbricht stayed active in the crypto world, and even shared his thoughts on platforms like X. Just days before his pardon, he also warned the community about a fake meme coin bearing his name.

Crypto Mom Leads New SEC Crypto Task Force

The US Securities and Exchange Commission (SEC) took some of its first steps toward regulatory clarity in the crypto sector after the departure of former Chair Gary Gensler. On Jan. 21, the agency announced that it formed a dedicated crypto task force that will develop a comprehensive framework for digital assets. This initiative will be led by Commissioner Hester Peirce, who is also widely recognized as “Crypto Mom.”

SEC press release

The task force was introduced by acting SEC Chairman Mark Uyeda, who is temporarily overseeing the agency until the Senate confirms Paul Atkins, a former SEC Commissioner, as the new chair. According to the SEC, the task force will focus on establishing clear regulatory guidelines, creating pathways for compliance, developing sensible disclosure requirements, and deploying enforcement efforts more effectively.

Some of  the key appointments to the task force include Richard Gabbert as chief of staff and Taylor Asher as chief policy adviser. The group plans to engage in industry consultations through roundtable discussions to better understand the challenges that are faced by the crypto sector. Additionally, the task force will collaborate with other federal agencies, including the Commodity Futures Trading Commission (CFTC), which is led by Acting Chair Caroline Pham, as well as state and international regulators.

Historically, the SEC leaned very heavily on enforcement actions to address regulatory concerns in the crypto industry. Under Gensler and his predecessor Jay Clayton, the agency pursued numerous enforcement cases that very often alleged that crypto firms were offering unregistered securities. The regulatory crackdown intensified during the Biden administration, particularly after the collapse of the crypto exchange FTX.

For now, President Trump’s second term is expected to bring clearer regulatory pathways for crypto businesses, including rules that define which tokens qualify as securities and clarify oversight responsibilities between federal agencies. Despite this anticipation, Trump has barely said anything on crypto policy since taking office on Jan. 20. 

Dogecoin Surges as Musk’s DOGE Agency Website Goes Live

The ball is rolling in other crypto-related departments as well. Dogecoin (DOGE) surged by more than 11% after the launch of the official website for Elon Musk’s Department of Government Efficiency (DOGE). DOGE is a non-governmental agency that is focused on reducing government spending and streamlining regulations. The agency’s website went live on Jan. 21, which caused a lot of enthusiasm among retail investors who see a symbolic connection between the agency and the cryptocurrency due to the shared acronym and logo.

Official DOGE website

After the website’s debut, Dogecoin’s price briefly climbed to $0.38 and even surpassed $0.40 before stabilizing at $0.37. Despite this rally, Dogecoin is still below its all-time high of $0.73 that was achieved on May 8 of 2021. However, the meme coin’s market cap has seen some impressive milestones recently, including surpassing Porsche’s $56.1 billion valuation in late 2024, fueled by Musk’s endorsements and speculation around a potential exchange-traded product (ETP) for Dogecoin.

However, the Musk-led DOGE agency still faces legal challenges as the public interest law firm National Security Counselors announced plans to sue due to violations of the Federal Advisory Committee Act (FACA). The law firm argues that DOGE failed to meet transparency requirements, including public access to meetings and proper record-keeping. A 30-page complaint states that DOGE’s operations must comply with federal regulations.

DOGE’s mission is set to conclude on July 4, 2026, aiming to deliver a smaller, more efficient government to coincide with the 250th anniversary of the Declaration of Independence. While the agency’s goals align with Musk’s advocacy for efficiency, the legal and public scrutiny surrounding its operations certainly adds some uncertainty to its million and future plans.