Trump discovers his love for cryptocurrencies
Donald Trump Promises Crypto Fans, If Elected, He Will Introduce Bitcoin as a Strategic Reserve Currency and Fire Crypto-Skeptical Head of US Financial Regulator. But How Sincere Are Such Promises?
It wasn't long ago that former US President Donald Trump called Bitcoin a "scam against the dollar." Cryptocurrencies are "unregulated and can facilitate illegal behavior, including drug trafficking and other illicit activities," he wrote on the platform X in 2019. He was "not a fan of Bitcoin and other cryptocurrencies."
Today, that sounds very different. No US politician is currently courting the scene as strongly as the Republican presidential candidate. Last weekend, Trump even spoke at an industry conference in Nashville, criticized the scene's hated US Securities and Exchange Commission (SEC) chief Gary Gensler, and promised a national Bitcoin reserve. Bitcoin, said Trump, stands for "freedom, sovereignty, and independence from government force and control." Therefore, the scene should be promoted.
Bitcoin as a Strategic Reserve?
Much of what Trump explained in Nashville was not new. However, Trump's statements about a national Bitcoin reserve were surprising. The Republican announced that he would keep 100 percent of all Bitcoin that the US government currently owns or will acquire in the future. This would serve as the core of a "strategic national Bitcoin reserve." Trump said he would be the "pro-Bitcoin president" that America needs. While the industry had previously hoped for more, especially a firm promise that Bitcoin would become part of the US financial reserve, there was no mention of active purchases by Trump - but Trump's statements were far more than nothing. The Bitcoin price has been slightly positive since Trump's speech.
Trump also promised to establish a Bitcoin and crypto advisory board in the White House. This would create "transparent regulatory guidelines for the benefit of the entire industry" within the first 100 days of his presidency. There will be rules, but they will be made by people "who love your industry, not hate it," Trump said.
Gensler, the SEC chief, who is scheduled to remain in office until 2026, is an outspoken critic of crypto assets and is therefore no longer acceptable to Trump. Trump announced in Nashville that he would fire Gensler on his first day in office. That he probably cannot do that for legal reasons was not mentioned by Trump.
How sincere Trump's love for cryptocurrencies really is can be strongly questioned. Trump is an opportunist and may see an opportunity in the fact that more voters support or tolerate crypto assets than strongly reject them. Furthermore, some supporters exhibit a quasi-religious behavior towards cryptocurrencies. A political preacher of the highest rank is still missing in the US. Trump could see a market gap here.
From Critic to Preacher
As president (2017 to 2021), Trump was still one of the outspoken crypto skeptics. Cryptocurrencies are not money, fluctuate greatly in value, and are based on thin air. Even after his defeat by Joe Biden, he maintained his anti-Bitcoin rhetoric. That changed in 2022: In December of that year, Trump tried to make money for the first time with digital crypto collectible cards (NFTs). In May 2024, he announced that he would accept crypto donations in his campaign. According to the magazine "Barron's," his campaign has already collected an estimated 4 million dollars in Bitcoin and other tokens.
The political action committee Fairshake, which endorses cryptocurrencies, has reportedly raised around $170 million, making it one of the largest of its kind in this election cycle, according to a Barron's report. Some venture capitalists, including investors Marc Andreessen and Ben Horowitz, have stated that they would support Trump due to their dissatisfaction with the Democrats' crypto policy. Trump's vice-presidential candidate J.D. Vance has also claimed to be a crypto investor himself.
Trump has been courting the crypto community for several months now, securing the support of well-known Bitcoin investors Cameron and Tyler Winklevoss, among others.
The likely Democratic presidential candidate Kamala Harris, as a Californian, has strong ties to Silicon Valley, which could also help her build a bridge to the digital currency industry. According to the Wall Street Journal, her advisors have already made contact with crypto exchange Coinbase and payment service Ripple in recent days.
This article originally appeared on capital.de
Despite his previous criticism, former US President Donald Trump is now positioned as a strong advocate for Bitcoin, promising to establish a national Bitcoin reserve if elected and Fire Crypto-Skeptical Head of US Financial Regulator Gary Gensler. His promised policies have garnered substantial support from the crypto community, with well-known Bitcoin investors like the Winklevoss twins voicing their support for Trump.
