Trump is making bold promises to capture the digital asset industry's and investors' attention. Former president and 2024 Republican presidential candidate Donald Trump has delivered many broken promises in his political career.
This year, Trump has taken up crypto in an attempt to lure in crypto voters. On July 7, the Republican Party unveiled a draft of its political program, and crypto was specifically mentioned under its innovation program, next to the development programs for artificial intelligence and space expansion. The document summarized the main crypto objective of a Trump administration:
“Republicans will end
Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of
a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and
ensure every American has the right to self-custody of their Digital Assets,
and transact free from Government Surveillance and Control.”
The
political program was codified following Trump’s comments at the 2024
Bitcoin Conference in Nashville, where he said, “I pledge to the Bitcoin
community that the day I take the oath of office, Joe Biden and Kamala Harris’
anti-crypto crusade will be over,” stating firmly that “it will end. It will be
done.”
But will Trump really follow
through on these bold promises?
Bitcoin “made in the USA”
On
June 12, Trump posted
on Truth Social that he wanted “all the remaining Bitcoin to be made
in the USA,” claiming it would help the US become “energy
dominant.” Currently, 90% of the 21-million-capped Bitcoin supply has been
mined.
Ben
Gagnon, CEO of crypto mining firm Bitfarms, told Cointelegraph it’s “absolutely
possible and desirable to make America the number one country for Bitcoin
mining.”
Gagnon
said, “America will solidify its position as the most competitive place to mine
Bitcoin in the world if Trump reduces the red tape and increases support and
investment for energy and electricity infrastructure.”
Notably, Gagnon admitted
that one country can’t mine all the Bitcoin due to its decentralized
infrastructure:
“It’s not possible, nor
desirable, that 100% of Bitcoin are mined in the US or in any other country.”
Trump’s promise to mine the
remaining Bitcoin is not possible and is fundamentally contrary to the core
principles of its creator, Satoshi Nakamoto. Centralizing mining
operations within a single jurisdiction would dismantle Bitcoin’s foundational
value: decentralization.
Crypto can solve the US’ $35
trillion national debt
The
national debt is the total amount of outstanding borrowing by the US federal
government accumulated throughout the nation’s history.
According
to Fiscal Data, over the past 100 years, the US federal debt has increased from
$394 billion in 1924 to over $35 trillion in 2024.
During
an event related to his non-fungible token collection, Trump claimed that
“crypto has got a great future. I think it really does. Maybe we will pay off
the $35 trillion in crypto.”
Ric Edelman, founder of the
designation program for advisers platform Digital Assets Council of Financial
Professionals, told Cointelegraph he believes crypto could aid the chronic US
national debt issue:
“I have no doubt that a
Bitcoin reserve could sharply reduce and even perhaps eliminate our national
debt.”
However, he said he feels
equally confident that “Trump would not succeed in his efforts to create such a
reserve fund, or if he did, his successor would eliminate it.” Edelman admitted
Trump’s claim is a “fun sound bite on the campaign trail, but that’s all it
is.”
The US will create a
strategic Bitcoin reserve
In
addition to making the United States a world leader in Bitcoin mining, Trump
plans to create a strategic Bitcoin stockpile.
Trump’s
plan is for the US to hold 100% of the Bitcoin currently in its possession.
Many of those assets stem from seizures by law enforcement in criminal cases, which
could challenge his plan.
Almost half of the
government’s Bitcoin stockpile originates from a significant seizure following the Bitfinex hack. Since these assets
belong to affected victims, there’s legal pressure to return the funds to
Bitfinex or the impacted parties.
Recent: Harris
win unlikely to rock Bitcoin price, but crypto fears persist, say observers
Fortunately
for Trump’s plan, Senator Cynthia Lummis introduced a
bill to establish a Bitcoin strategic reserve, which, if approved, would create
a Bitcoin fund to hedge against the national debt. The goal is
to acquire 1 million BTC over five years to hold
for at least 20 years.
With backing in Congress,
Trump’s plan to create a Bitcoin reserve may actually have a chance of seeing
the light of day. Still, it will require a number of fellow lawmakers to
realize Bitcoin’s potential.
Fire Gary Gensler “on day
one”
Many
in the cryptocurrency industry have criticized the US Securities and Exchange
Commission for “regulating by enforcement.”
Under
Chair Gary Gensler, the commission has opened multiple cases against major
crypto firms for allegedly selling unregistered securities.
The
US crypto industry has been pushing hard for regulatory clarity, claiming that
current SEC guidance remains ambiguous. According to industry observers, this
lack of clear rules creates uncertainty, hindering market engagement and growth
within the US crypto sector.
One
of Trump’s most crystal clear promises is that he will fire Gensler “on
day one.”
Trump
argues that new leadership will bring a more crypto-friendly regulatory
environment and help the US crypto industry grow. However, can he actually fire
Gensler?
Firing
the SEC chair may not be as easy as Trump thinks. While he would not require
Senate approval to fire Gensler, throwing out an influential regulator so
unceremoniously could set a dangerous precedent and face political backlash.
The
president must dismiss the SEC chair “for cause,” meaning that Trump must
justify the dismissal on the grounds of neglect, inefficiency or some other
form of malfeasance. Furthermore, the entire process of establishing cause,
legal reviews and administrative transitions could take over a year.
So,
Trump will likely have to live with Gensler for a while before someone new
steps in.
Stop the development of a US
CBDC
Trump
has pledged to stop any development of a central bank digital currency (CBDC)
by the US Treasury, signaling his opposition to increased governmental control
over digital assets.
During
the Bitcoin Conference in Nashville, Trump claimed, “There will never be a CBDC
while I’m president of the United States,” describing the technology as an
imminent threat to financial privacy.
Trump
is not alone: Many Republican politicians have made public statements against
CBDCs, with the governor of Florida, Ron DeSantis, signing a bill to restrict their use in the state.
Congressman
Tom Emmer introduced the CBDC Anti-Surveillance State Act, prohibiting the
Federal Reserve from issuing a CBDC without congressional approval. The bill is
still in committee.
Set Silk Road operator Ross
Ulbricht free
During
the Libertarian National Convention, Trump said that — again on “day one” — he
would commute the sentence of Ross Ulbricht, who founded the darknet market
Silk Road, which permitted the illegal trading of drugs, weapons and other
unlawful goods.
Ulbricht’s sentence is highly controversial due to
its severity — a double life sentence plus 40 years without parole — for
nonviolent crimes.
Critics
argue that his punishment is excessive compared to sentences for similar
offenses, pointing to issues of judicial overreach, precedent for digital-age
crimes, and concerns about the criminal justice system’s handling of
first-time, nonviolent offenders.
“We’re
going to get him home,” Trump assured, claiming he’s already had enough jail
time, as “he’s already served 11 years.”
Trump
could quickly enact his promise, as a US president has the power to reduce the
length of a sentence or grant relief from a conviction for federal offenses.
A
commute wouldn’t absolve Ulbricht from his conviction but would allow his early
release.
Create a crypto advisory
council for precise crypto policies
Crypto
is a broad and complex topic, especially for regulators. Trump said in
Nashville that if reelected, he would create a presidential advisory committee
to ensure a solid regulatory framework for crypto becomes law.
“We
will have regulations, but from now on, the rules will be written by people who
love your industry, not hate your industry,” said Trump.
Trump
said that the task of the crypto council would be to “design transparent
regulatory guidance for the benefit of the entire industry, and they will get
it done in 100 days.”
Pseudonymous
crypto market analyst and trader Crypto Rand previously told Cointelegraph
that this promise may be one of the most significant, as
he believes Congress and the SEC have repeatedly demonstrated their lack of
understanding of the crypto industry and its dynamics.
Crypto self-custody as a right
Trump
has further promised to enshrine a right to self-custody for crypto users,
effectively codifying “not your keys, not your coins” into US federal law.
Trump’s
commitment to crypto self-custody is bolstered by legislation proposed by
Republican Senator Ted Budd. He introduced the
Keep Your Coins Act in the Senate on Nov. 7, 2023, which aims to prohibit
restrictions on Americans’ ability to transact through self-hosted crypto
wallets.
The
Republican lawmaker’s legislation stands at odds with a measure proposed by
Democratic Senator Elizabeth Warren in 2022. Dubbed the Digital Asset
Anti-Money Laundering Act, the bill would require crypto-market
participants to identify and track users with self-custodial wallets, including
crypto wallet service providers, miners and validators, among others.