The U.S. crypto landscape is facing a significant shift as political support for the sector weakens amid volatile market conditions. Several key figures, including former President Donald Trump and prominent cryptocurrency advocate Paul Atkins, have stepped back from active engagement in the industry. This change has been reflected in stalled legislation and reduced bipartisan cooperation, leaving regulatory frameworks largely stagnant. Market downturn has led to a notable investor cautionary shift. Bitcoin ETFs are seeing over $1.2 billion in net outflows as investors withdraw liquidity. These factors contribute to heightened market volatility and pose risks for stability.