Nov 12, 2024 04:15
When it comes to Trumps stance on crypto, youll find polar opposite perspectives depending on who you talk to. Ask a Trump supporter in crypto, and theyll tell you hes the savior of the industry, the one wholl pass pro-crypto laws that turn America into the global crypto capital. On the flip side, his critics are quick to claim that his pro-crypto talk was just a vote-getting tactic, and now that the election is over, they argue, we shouldnt expect much action.
Today were focusing only on what Donald Trump himself has said about crypto-related policies.
While tech industry members and his campaign have discussed additional policies, and claimed they have Trump's support - we're excluding those here.
The majority of these came from Trump's crypto-focused speech at the Bitcoin 2024 conference in Nashville (watch the full speech here). Trump shared a lineup of pro-crypto policies that sparked significant interest within the digital currency world. Heres a breakdown of each proposal he laid out:
Fire SEC Chair Gary Gensler: Trump pledged to remove Gary Gensler, the current chair of the Securities and Exchange Commission (SEC), appointed by the Biden administration. Gensler has a reputation in the crypto community as a regulator with an aggressive stance toward digital assets. Many crypto advocates feel his policies have created more confusion than clarity, especially regarding whether certain tokens should be classified as securities. By replacing Gensler, Trump is signaling a potential shift to a more crypto-friendly regulatory environment, potentially making it easier for crypto companies to operate without fear of sudden legal challenges.
Create a Government Stockpile of Bitcoin: Trump introduced the idea of establishing a strategic national Bitcoin stockpile. He suggested that his administration would hold onto all the Bitcoin the U.S. government currently possesses or acquires. This government-owned Bitcoinmuch of which has been seized from criminal cases and is valued at more than $5 billion as of 2023would supposedly act as a reserve. The concept is similar to traditional stockpiles of gold or oil, but Trump did not clarify how it would be used, whether its a practical move, or how the crypto industry at large views this initiative. This idea raises questions about the governments long-term strategy for digital assets and what a Bitcoin reserve might mean for the stability of the currency.
Launch a Crypto Advisory Council: Trump proposed forming a Bitcoin and Crypto Presidential Advisory Council composed of crypto-friendly experts and advocates. According to Trump, this council would write the rules for the industry rather than leaving it to those who dont support it. This advisory body could provide direct input to the White House on crypto issues, helping to bridge the gap between government and industry and potentially crafting regulations that align more closely with the goals of crypto innovators.
Block the Federal Reserve from Developing a Digital Currency: Trump reaffirmed his opposition to Central Bank Digital Currencies (CBDCs), which many countries are exploring as a digital alternative to traditional currencies. Trumps stance aligns with a broader hesitance in the U.S. crypto community to adopt a government-controlled digital dollar, seen by some as a potential infringement on financial freedom. He referred to CBDCs as a dangerous threat to freedom, and vowed to prevent the Federal Reserve from developing one if elected. This position is supported by a recent bill passed in the House aiming to restrict the Fed from moving forward with a CBDC. By opposing a digital dollar, Trump positions himself as a defender of private digital currency in contrast to government-controlled alternatives.
What a Trump Presidency Could Mean for Crypto
Theres definitely a bullish wave in the crypto market right now, largely fueled by optimism around Trumps policies. If he keeps his promises, we might finally get the regulatory clarity thats been missing for years. Back in 2017, key industry voices were already pushing for clear rules, yet somehow, things have only gotten murkier.
Heres the current situation: the U.S. government wont clarify which existing laws apply to crypto. If you unknowingly cross an invisible line, you may find out only when the SEC files a lawsuit against you. Case in point: Coinbase was vetted by the SEC before going public, ensuring it was fully compliant with regulations. Then, a year later, without any changes to Coinbases operations, the SEC suddenly sued them for operating as an unlicensed securities exchange. The lack of consistency and transparency from SEC Chair Gary Gensler has frustrated many in the industry.
And while Genslers SEC targeted companies like Coinbase and Kraken, which have made genuine efforts to comply, FTXs Sam Bankman-Fried was able to operate under the radar until his house of cards collapsed. In a functional regulatory environment, companies should be able to present their plans to regulators, who, in turn, would provide guidance on whats legalsomething thats long overdue in the crypto sector.
This kind of regulatory clarity, especially the ability to operate without the looming threat of a government lawsuit, could be transformative for crypto businesses. Right now, no crypto-focused company in America can be sure itll survive another year without a sudden legal challenge.
Will He Follow Through?Trumps reputation isnt one of breaking campaign promises; quite the opposite, his critics often take issue with the fact that he follows through on them.
With Republicans now controlling all branches of government, they likely wont need much, if any, Democratic support to pass legislation. And if they do, there are pro-crypto Democrats who might align on these issues.
All things considered, we'll have to say YES, odds are Trumps proposed crypto policies will actually materialize under his administration.
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Author: Oliver Redding
Seattle Newsdesk / Breaking Crypto NewsSubscribe to GCP in a reader
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