Donald Trump's 2024 Crypto Promises: Plans and Potential Roadblocks
In his campaign for the 2024 presidency, former President Donald Trump has adopted a pro-crypto stance, positioning himself as a champion of the industry. His promises range from curtailing crypto regulations to creating a strategic Bitcoin reserve, aiming to draw support from cryptocurrency advocates.
Promises on Crypto Regulation and Mining
On July 7, the Republican Party highlighted crypto in its platform, pledging to protect Bitcoin mining and oppose a central bank digital currency (CBDC). Trump echoed these sentiments during the 2024 Bitcoin Conference in Nashville, vowing to halt what he described as a "Democratic anti-crypto crusade." He has also emphasized a desire to boost domestic Bitcoin mining, despite Bitcoin's decentralized nature.
Crypto industry leaders, such as Bitfarms CEO Ben Gagnon, have expressed cautious optimism. Gagnon believes the U.S. could become a leading Bitcoin mining hub if Trump reduces regulatory constraints. However, he acknowledges that Bitcoin's decentralized system makes it impossible for any single country to mine all Bitcoin.
Tackling National Debt with Crypto?
Trump suggested using crypto to address the U.S.'s $35 trillion national debt. At a recent event, he claimed that crypto has the potential to "pay off the debt." Financial experts like Ric Edelman agree that Bitcoin could theoretically serve as a national reserve but remain skeptical of its practical implementation.
Strategic Bitcoin Reserve
Trump has proposed a "strategic Bitcoin reserve" to establish U.S. dominance in the crypto space. Legislative support exists; Senator Cynthia Lummis recently introduced a bill to create a national Bitcoin reserve. This bipartisan move could provide the foundation for Trump’s ambitions if his proposal gains traction in Congress.
SEC Leadership and Regulatory Changes
Trump has promised to fire SEC Chair Gary Gensler on "day one" to bring in pro-crypto leadership. Although the president has the authority to dismiss the SEC chair, such action would require cause, making an immediate termination challenging.
Opposing a U.S. CBDC
Trump has taken a firm stance against a U.S. CBDC, calling it a threat to financial privacy. Many Republicans share his concern, including figures like Governor Ron DeSantis and Congressman Tom Emmer, who introduced a bill to limit CBDC development. This anti-CBDC stance could rally further support from privacy advocates within the crypto community.
Commuting Ross Ulbricht’s Sentence
In a notable move, Trump has pledged to commute Ross Ulbricht's sentence for founding the Silk Road. The severe punishment of a double life sentence plus 40 years has sparked debate over sentencing in digital crime cases. Trump's presidential powers could enable him to reduce Ulbricht’s sentence, potentially gaining support from advocates for criminal justice reform.
Establishing a Crypto Advisory Council
Trump has proposed creating a presidential crypto advisory council, promising that pro-crypto regulators would draft new rules within 100 days of his potential inauguration. This council would provide guidance on regulatory clarity, an issue the crypto industry has long demanded.
Enshrining Crypto Self-Custody Rights
To empower crypto users, Trump has vowed to codify the right to self-custody, reinforcing the principle of "not your keys, not your coins." The promise builds on the "Keep Your Coins Act" proposed by Senator Ted Budd, countering more restrictive proposals like Senator Elizabeth Warren’s 2022 Digital Asset Anti-Money Laundering Act.
The Path Ahead
Trump’s promises paint a bold future for the U.S. crypto landscape, yet many of his proposals may encounter political and regulatory challenges. From firing Gensler to establishing a strategic Bitcoin reserve, the feasibility of these plans remains uncertain.