In a bold move, Donald Trump pledges to prioritize cryptocurrency in his ‘America First’ agenda, promising a national bitcoin stockpile and regulatory reforms if elected president.
Donald Trump has taken a significant step in aligning his campaign with the rapidly evolving cryptocurrency industry. The former president and current Republican presidential candidate made headlines on Saturday at the Bitcoin Conference in Nashville, Tennessee. Addressing a crowd of approximately 20,000 bitcoin enthusiasts and industry leaders, Trump made it clear that he intends to be the “crypto president.”
“If crypto is going to define the future, I want it to be mined, minted, and made in the USA,” Trump declared, encapsulating his vision in the familiar mantra of “America First.” His 50-minute keynote speech was filled with promises aimed at cementing the United States as a leading player in the global cryptocurrency landscape.
One of Trump’s major proposals includes the creation of a “strategic national bitcoin stockpile.” This initiative would see the US government amassing a reserve of bitcoins, akin to its gold reserves, to lend credibility to the cryptocurrency and stabilize its value. The government currently holds around 164,000 bitcoins, valued at approximately $US8.8 billion, which were seized from cybercriminals and darknet markets, according to an analysis by crypto firm 21.co.
Regulatory Reforms and Industry Support
Trump also vowed to establish a bitcoin and crypto presidential advisory council. This body would be responsible for crafting clear regulatory guidelines, addressing a long-standing complaint within the crypto industry about the lack of transparent and consistent regulations. The proposal was met with enthusiastic applause, particularly when Trump promised to dismiss Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC), who has been known for his stringent regulatory actions against the crypto industry.
During his speech, Trump positioned himself as a staunch advocate for bitcoin and other digital assets, marking a notable shift from his previous stance during his presidency, when he described cryptocurrencies as being based on “thin air.” His running mate, JD Vance of Ohio, has been a vocal supporter of cryptocurrencies and held over $US100,000 in bitcoin as of 2022, according to financial disclosures.
Crypto Industry’s Financial Backing
Trump’s alignment with the crypto industry comes at a time when the sector is experiencing a surge in financial power, thanks to a significant rise in bitcoin prices this year. Major industry players, including Coinbase Global, venture-capital firm Andreessen Horowitz, and payments firm Ripple, have collectively contributed nearly $US170 million to various political action committees (PACs) to advocate for crypto-friendly policies.
Fairshake, the largest of these PACs, has raised the second-largest sum of any super PAC this election cycle, as reported by OpenSecrets, a nonpartisan organization tracking political spending. Additionally, crypto executives have personally donated over $US2.5 million to Trump’s campaign. Notably, Trump became the first major-party presidential candidate to accept digital assets as campaign contributions in May.
On the campaign trail and through his social media platforms, Trump has consistently championed bitcoin mining in the US, despite its energy-intensive nature. He has also pledged to “end Joe Biden’s war on crypto,” referencing the numerous lawsuits filed by the SEC under Gensler’s leadership against crypto exchanges and companies accused of violating investor protection laws.
A Changing Landscape
The crypto industry’s embrace of Trump marks a stark turnaround from its position following the 2022 collapse of the crypto exchange FTX. During that crisis, many members of Congress who had received donations from the industry faced pressure to return the funds. However, two years later, the industry appears eager to support Trump’s candidacy.
In a recent fundraiser held in San Francisco, Trump met with notable figures in the crypto world, including Cameron and Tyler Winklevoss, co-founders of the Gemini exchange, and executives from Coinbase and Ripple. These companies have all faced legal challenges from the SEC.
Meanwhile, Kamala Harris, the expected Democratic nominee, has been making overtures to the crypto industry. Her advisors have reached out to Coinbase and Ripple, signaling a potential reset in relations. However, Harris has yet to publicly articulate a detailed stance on cryptocurrency.
Trump’s newfound enthusiasm for crypto was notably sparked in 2022 when he saw a business opportunity in non-fungible tokens (NFTs). His initial foray into NFTs featured him as a superhero, and last year, he launched mugshot NFTs following his legal issues in Georgia.
As the race for the presidency heats up, Trump’s commitment to integrating cryptocurrency into his ‘America First’ agenda is set to be a defining feature of his campaign. The former president’s pivot towards embracing digital assets underscores a broader trend of increasing political engagement with the crypto industry.
