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2024/11/02 16:46

Trump makes big promises about crypto in US🔥

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Trump is making bold promises to capture the attention of the digital asset industry and investors.

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.


Trump’s aims to bolster the US mining industry and keep Bitcoin production onshore could face significant logistical and regulatory challenges due to the decentralized nature of Bitcoin mining.

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.

The mounting debt poses a looming risk, potentially leading to severe long-term economic challenges.

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.

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