2024 US election ended with Donald Trump securing victory and the Republican Party gaining a majority in Congress. While various issues were at play, many are hailing cryptocurrency as the election’s real winner, thanks to Trump’s vocal support for the crypto community. His campaign centered on substantial commitments to overhaul crypto regulations, promising a future where digital assets could thrive under less restrictive oversight.
Trump’s Vision for Crypto: Key Promises to the Industry
1. Ending the SEC’s Regulatory Crackdown on Crypto
Throughout his campaign, Trump targeted the Securities and Exchange Commission (SEC) and its current Chair, Gary Gensler. Under President Joe Biden’s administration, the SEC had been criticized for intensifying regulatory scrutiny on the crypto sector. Trump promised, “Day one, I will fire Gary Gensler.” He further committed to appointing a new SEC chair focused on innovation, rather than imposing limitations. This change aims to alleviate the industry’s concerns about restrictions that have pushed talent and investment offshore.
2. Protecting Self-Custody Rights
One of the core concerns for many crypto advocates has been the risk to self-custody. The Biden administration had been seen as favoring centralized digital currencies (CBDCs) over decentralized options, with prominent figures like Senator Elizabeth Warren promoting stricter anti-money laundering (AML) regulations. Trump, however, has assured the community that, “There will never be a CBDC while I’m president of the United States,” promising to safeguard individuals’ rights to self-custody and reduce government oversight in the crypto realm.
3. Supporting Bitcoin Mining in the US
Bitcoin mining is a divisive subject, largely due to its high energy demands. Under Biden, the industry faced several proposals to impose extra taxes. Trump, however, voiced strong support for domestic Bitcoin mining. “Bitcoin mining may be our last line of defense against a CBDC. We want all the remaining Bitcoin to be MADE IN THE USA!” he posted on Truth Social in June 2024. His promise to back mining has resonated with crypto advocates as it may bolster US energy dominance while securing a significant share of global Bitcoin production.
4. Establishing a National Bitcoin Reserve
For years, Bitcoin has been referred to as “digital gold,” and Trump’s administration could potentially take steps toward making this a reality. Speaking at the Bitcoin 2024 conference, Trump announced plans to build a “strategic national Bitcoin stockpile” with over 200,000 Bitcoin seized by the US government. “It will be the policy of my administration to keep 100% of all the Bitcoin the US government currently holds or acquires,” Trump asserted, which has sparked significant interest from crypto investors.
5. Freeing Ross Ulbricht
In a nod to libertarian values, Trump has promised to commute the sentence of Ross Ulbricht, the founder of the Silk Road marketplace. Ulbricht has served 11 years of a double life sentence, which crypto proponents have deemed excessive. “If you vote for me, on Day 1, I will commute the sentence of Ross Ulbricht,” Trump pledged. This move is viewed as a signal of Trump’s commitment to individual freedoms, further endearing him to crypto advocates who believe in limited government intervention.
Impact of Trump’s Victory on the Crypto Market
Trump’s win has already made waves in the crypto market, driving Bitcoin to unprecedented highs above $75,000. His promises to protect and promote the crypto industry have raised optimism among crypto enthusiasts and investors alike. Market analysts suggest that Trump’s regulatory stance could boost crypto’s global standing and solidify the US as a pro-crypto environment.
Why This Matters for the Future of Crypto
Trump’s decisive stance on crypto regulation played a significant role in garnering support from the digital asset community, with experts believing it could redefine the industry’s path in the United States. As he prepares to take office, crypto enthusiasts are hopeful that his leadership will bring a favorable regulatory framework, fostering innovation, growth, and potentially solidifying crypto’s status in the national and global economy.
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