Former President Donald Trump, who was unironically lauded as a staunch opposer of crypto, having referred to them as highly volatile digital currencies that survive on “thin air,” has now reversed his policy framing himself as the champion of crypto. Funnily enough, he has conveniently labelled his political rivals Kamala Harris and Biden as the enemies of crypto.
Donald Trump's shift could have major implications for the crypto industry. Speaking at the Bitcoin 2024 event in Nashville, Tennessee, Trump declared that if he is re-elected as president, he will fire the chairperson of the US Securities and Exchange Commission on his first day in office.
During his 45-minute speech, Trump outlined his vision for the cryptocurrency sector, promising to make the US the world’s cryptocurrency capital. This stance represents a complete reversal of his 2021 comments, when he described Bitcoin as a “scam”, going as far as to accuse crypto of enabling crimes such as drug trafficking. Now, Trump is advocating for a national Bitcoin stockpile, vowing to retain 100% of the Bitcoin held or acquired by the federal government.
Trump’s 2021 position echoed concerns raised by the European Commission in 2019 when Facebook decided it was going to create its own stablecoin, Libra. EU policy makers, intent on maintaining central banking currency monopolies, saw Libra as a threat, citing financial instability as their core concern. And so, Brussels initiated a series of tough regulations known as the MiCA proposals that “fosters technological development and ensures financial stability”.
It could be surmised that Trump's endorsement is primarily an attempt to undo these regulatory efforts, as well as a political tool to shore up support from the crypto tech community. He reportedly said “from now on the rules will be written by people who love your industry, not hate your industry”, making his agenda abundantly clear. Trump wants to champion himself as the saviour of crypto, branding his political opponents, Kamala and now Tim Walz, as tyrants who wish to undermine the potential and freedom of cryptocurrency.
However, it is reasonable to believe that if Trump were to win the election, the White House would be unlikely to diminish the financial and economic heft granted by the greenback. Favouring a decentralised currency system would not align with the interests of the US government or, more pertinently, Trump himself. Therefore, it is safe to assume that Trump’s chief proposals to soften regulations for crypto holders are primarily to garner support and encourage donations, which are up to three million dollars from crypto in the second quarter of this financial year.
So, was this Trump's sales pitch to the tech community?
Yes and no. Recently, Elon Musk has thrown himself behind Trump, perhaps in part due to feeling jilted by the Biden administration for refusing to invite him to the EV summit in Washington. Biden has responded angrily, accusing Musk of trying to buy the election with his “rich buddies”.
Musk has been quite vocal on X, with some accusing him of leaning too far to the right, particularly after his comments about Biden and his recent alarmist comments regarding the UK riots. His behaviour and tweets have drawn parallels to those of Russia's Dmitry Medvedev and Lebanon's Nasrallah.
Trump has already received astronomical sums for his presidential campaign since the attempted assassination, with analysts predicting these numbers will increase further thanks to his endorsement of the cryptocurrency community.
Through framing cryptocurrency regulation as a partisan issue, Trump has successfully labelled the Biden administration as “anti-crypto.” Meanwhile, Kamala Harris has been trying to reverse the narrative by challenging Trump to a debate, which she believes he is reluctant to do, given that she presents much more of a challenge than Biden has of late.
Trump’s appearance at Bitcoin 2024 underscores the increasingly prominent role of cryptocurrency in American politics, as both parties look to utilise the crypto community to favour their own political agendas.
Image: Flickr/CryptoWallet.com Images
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