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Former President Donald Trump is making significant waves in the cryptocurrency community with a bold pro-crypto agenda aimed at winning over supporters. His recent promises include protecting Bitcoin mining rights, opposing the development of a Central Bank Digital Currency (CBDC), and enhancing America’s position within the global crypto landscape. However, as with many political commitments, there remain questions about whether these promises can truly be fulfilled.
Republican Party’s Focus on Cryptocurrency
In July, the Republican Party revealed a draft political program that prominently featured cryptocurrency as part of its innovation agenda, alongside emerging technologies such as artificial intelligence and space exploration. The plan addressed what it described as the Democrats’ “unlawful and unAmerican crypto crackdown” and asserted that a Trump-led administration would uphold Americans’ rights to mine, hold, and trade digital assets free from government interference.
At the 2024 Bitcoin Conference held in Nashville, Trump further energized the crypto crowd by stating that any “anti-crypto crusade” initiated by the current administration would come to an end if he were to regain the presidency. Yet, the path to actualizing this vision is fraught with challenges.
Challenges to Domestic Bitcoin Mining
One of Trump’s ambitious proposals targets the domestic Bitcoin mining industry. He suggested on his social media platform, Truth Social, that the remaining Bitcoin should be mined exclusively within the United States. While this idea may strike a chord with certain proponents of cryptocurrency, it inherently contradicts Bitcoin’s decentralized ethos. Prominent industry voices, such as Bitfarms CEO Ben Gagnon, have echoed this sentiment, indicating that while it’s desirable for the U.S. to excel in mining, centralizing production domestically undermines the very principles that Bitcoin was founded upon.
Establishing a National Bitcoin Reserve
Another notable promise from Trump involves the creation of a national Bitcoin reserve aimed at addressing the escalating national debt, which currently exceeds $35 trillion. This intriguing proposal is riddled with legal complications, particularly concerning the government’s existing Bitcoin holdings, which primarily come from assets seized in criminal investigations. Additionally, portions of these assets are expected to be returned to their rightful owners.
Senator Cynthia Lummis has also proposed establishing a Bitcoin reserve, but significant political support would be necessary to advance such a fund. Regulation remains one of the primary challenges facing the crypto sector, and Trump has taken a firm stance on introducing more favorable regulations.
Trump’s Regulatory Promises
Trump has made headlines by vowing to dismiss SEC Chair Gary Gensler on his very first day in office, aiming to introduce more crypto-friendly regulations. The audience at the Bitcoin Conference erupted with enthusiasm at this announcement, but it’s worth noting that removing a high-ranking official like Gensler would likely lead to a lengthy legal process requiring legitimate cause, which could provoke political backlash.
In addition to pledging to remove Gensler, Trump has firmly stated his intention to block any moves towards a CBDC, arguing that a centralized digital currency would undermine financial privacy. Furthermore, he has expressed a desire to commute the sentence of Ross Ulbricht, the founder of Silk Road, known for its role in facilitating illicit transactions via Bitcoin. At a Libertarian National Convention event, Trump promised to “set Ulbricht free” on his first day if elected.
The Right to Self-Custody
Trump has also emphasized the importance of the “right to self-custody,” promising to codify it into law. While these pledges align with the desires of many in the crypto community, Trump’s history of making bold claims followed by reversals has left some enthusiasts skeptical about whether these promises will materialize into actionable policies.
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