Former President Donald Trump has pitched big plans for crypto on the campaign trail, folding several promises into his reelection bid while trying to make inroads with digital asset owners.
When it comes to the nascent industry, crypto isn’t listed among 20 core goals that make up the Republican Party’s official 2024 platform—and the topic didn’t come up during his interview with Elon Musk on Monday. Still, in a draft document released this July, crypto was mentioned alongside artificial intelligence as an area of focus. According to the candidate, both serve as areas where innovation should be championed in building the “greatest economy in history.”
“Republicans will end Democrats’ unlawful and un-American crypto crackdown and oppose the creation of a Central Bank Digital Currency,” Trump’s document states. “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.”
While the single paragraph captured the bulk of Trump’s crypto pitch at the time, Vice President Kamala Harris has yet to opine on digital assets from the top of the Democratic Party’s 2024 ticket. Trump has affirmed he’s “very positive and open minded” toward crypto companies on Truth Social. That includes, he wrote, “all things related to this new and burgeoning industry.”
The former president has touched on several other issues related to the crypto industry in anticipation of November’s election. Some of his promises have focused on individuals, while other assurances seek to bring Bitcoin to Washington in novel ways.
Ending the ‘Crypto Crackdown’
Trump’s reference above to a “crypto crackdown” likely centers on the Securities and Exchange Commission (SEC), which has pursued an aggressive string of enforcement actions following FTX’s collapse in 2022. Bent against noncompliance with securities laws among industry participants, SEC Chair Gary Gensler has become increasingly targeted by Trump, too.
When Trump said he was “good” with crypto in May—signaling his shift from skeptic to defender—the former president presented himself as a foil to President Joe Biden and Gensler. Trump claimed the duo, along with other Democrats, “are very much against” crypto.
The former president later vowed to “fire Gary Gensler” if reelected at a recent Bitcoin conference in Nashville—hands down garnering the loudest cheers during his speech. However, Gensler’s term is slated to run through 2026, and Trump does not have the authority to remove Gensler from his position without cause.
“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,” Trump vowed in Nashville. “It will end. It will be done.”
Friendlier Regulation
Lawmakers in the Republican-led U.S. House passed a legal framework for the digital assets industry in May, teeing up a landmark crypto bill in the U.S. Senate after extensive debate.
The legislation demarcates the SEC’s regulatory jurisdiction in relation to the Commodity Futures Trading Commission while providing a pathway for digital asset issuers to self-certify assets as commodities. For the crypto industry, its passage was viewed as a major win.
Trump said in Nashville that if reelected, he would create a presidential advisory committee to ensure that a regulatory framework for crypto becomes law.
“Their task will be to design transparent regulatory guidance for the benefit of the entire industry, and they will get it done in 100 days,” he said. “We will have regulations, but from now on, the rules will be written by people who love your industry, not hate your industry.”
Build a Bitcoin Stockpile
During that same speech, Trump promised to turn America into the crypto capital of the planet while making the U.S. the “Bitcoin superpower of the world.” Part of that plan involves a strategic Bitcoin stockpile, where the U.S. would hold onto 100% of the Bitcoin it possesses. A large portion of those assets stem from seizures in criminal cases by law enforcement.
Trump’s promise somewhat parallels a “strategic Bitcoin reserve” proposed by Sen. Cynthia Lummis (R-WY). Under her plan, the U.S. government would instead build up a strategic reserve of 1 million Bitcoin by purchasing the asset in bulk over a set period of time.
Dominate Bitcoin Mining
The former president called for “all remaining Bitcoin [to be] made in the U.S.A.” following a meeting with executives from publicly traded Bitcoin miners in June. With miners operating around the globe, however, cutting them off from the open network isn’t all that feasible.
From Trump’s perspective, Bitcoin miners can help America stay “energy dominant.” Contrasting his stance with Biden, who was still in the race at that time, Trump wrote on Truth Social that a “hatred of Bitcoin” only helps America’s adversaries, such as China and Russia.
“If crypto is going to define the future, I want to be mined, minted, and made in the U.S.A,” Trump said later in Nashville. “It’s not going to be made anywhere else.”
Save Self-Custody
“Not your keys, not your crypto” is an important saying among Bitcoiners. Instead of keeping assets on centralized exchanges like Coinbase, Bitcoin’s devotees often argue that a self-hosted wallet, which involves the maintenance of private keys, is the best option.
“I will always defend the right to self-custody,” Trump said last month. “We’re going to be fuel for your industry, not demolish your industry.”
Trump’s focus on self-custody aligns with legislation introduced by Sen. Ted Budd (R-NC). Last year, the lawmaker introduced the Keep Your Coins Act in the Senate, which prohibits restrictions on Americans’ ability to conduct transactions through self-hosted crypto wallets.
The Republican lawmaker’s legislation stands at odds with a measure proposed by Sen. Elizabeth Warren (D-MA) 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. That includes crypto wallet service providers, miners, and validators, among others.
No CBDC
The former president has warned against the dangers of central bank digital currencies (CBDC), echoing conservatives like Florida Governor Ron DeSantis and Rep. Tom Emmer (R-MN).
While Federal Reserve Chairman Jerome Powell recently said that the U.S. central bank is “really not” looking at implementing the technology, Trump has vowed to protect Americans against it.
CBDCs are similar to stablecoins in the sense that they are both digital assets pegged to the price of a fiat currency, such as the U.S. dollar. However, instead of being issued by private companies on public networks, CBDCs are controlled by their respective governments.
“There will never be a CBDC while I’m president of the United States,” Trump said in Nashville, describing the technology as an imminent threat to financial privacy. “Forget it.”
Emmer’s CBDC Anti-Surveillance State Act, which prohibits the Fed from issuing a CBDC without congressional approval, was passed in the House of Representatives in May. Subsequently, it was referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Release Ross Ulbricht
At the Libertarian National Convention in May, Trump promised to commute the lifetime prison sentence of Ross Ulbricht, who created the darknet marketplace Silk Road in 2011.
Allowing users to buy and sell illegal goods and services using Bitcoin, Ulbricht was sentenced in 2015 for operating the service that was primarily used to obtain drugs. He was convicted on a combination of drug trafficking, computer hacking, and money laundering charges.
“He’s already served 11 years,” Trump said of Ulbricht. “We’re going to get him home.”
Edited by Ryan Ozawa.
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Source: https://decrypt.co/244506/donald-trump-bitcoin-crypto-campaign-promises
