Author: Lincoln Murr; Source: bitpush; Translation: Bitpush News Scott Liu
The politicization of cryptocurrencies has intensified as the presidential election approaches. Former US President Trump has led with many pro-cryptocurrency statements, compelling Democrats to court the tens of millions of American cryptocurrency holders. Despite Trump’s pledge to be the “cryptocurrency president,” many questions remain regarding his actual impact on the future of blockchain and cryptocurrencies.
In this election cycle, Trump is actively courting blocs of single-issue voters such as cryptocurrency enthusiasts, Silicon Valley tech workers, and ordinary Americans who believe in Bitcoin’s mission and values. In his speeches and within the Republican Party’s official platform, he promises never to allow the creation of a central bank digital currency, to preserve the right to self-custody assets, and to defend the rights of Bitcoin miners.
Trump recently announced his vice presidential candidate as JD Vance, a Senator from Ohio who holds between $100,000 to $250,000 worth of Bitcoin, marking the first historical presidential ticket composed of Bitcoin holders. Trump also recently stated his belief that Jamie Dimon, CEO of JPMorgan Chase and a staunch critic of Bitcoin, “has softened his stance a little.” This represents a significant shift in opinion as Dimon has long labeled Bitcoin as a fraud and Ponzi scheme, though time will tell if this is a genuine change or an attempt to align with the Trump administration, which could potentially appoint him as US Treasury Secretary.
Trump’s pro-cryptocurrency stance will reach a crescendo on July 27th when he takes the stage at the Bitcoin 2024 conference in Nashville, facing thousands of industry leaders and enthusiasts. Rumors suggest he may announce the creation of a strategic US Bitcoin reserve in Nashville, although this remains unconfirmed.
Four years ago, mention of Bitcoin or cryptocurrencies would have been front-page news. Now, such occurrences are almost weekly, increasingly becoming a significant political issue. This in itself has a profound impact on the cryptocurrency market and indicates growing public and legislative acceptance and legalization of cryptocurrencies.
While Trump’s commitments and beliefs appear highly favorable to the cryptocurrency industry, the reality is far more complex. Trump has a history of making promises he does not fulfill, and in the worst-case scenario, all his statements could prove to be empty. Billionaire investor Mark Cuban believes the benefits of a Trump presidency for Bitcoin are not necessarily due to his bullish stance on the asset but rather because of the overall geopolitical instability, lower taxes, and tariffs his administration brings, which could increase demand and prices for Bitcoin.
Another consideration is the consequence of Trump’s promise fulfillment. While the rights to self-custody, mining, and absence of a central bank digital currency are undoubtedly positive developments, these are rights people currently possess. Trump has not promised anything regarding innovation in cryptocurrencies but has only preserved the rights already enjoyed by American cryptocurrency holders. There are hints that a Trump-led government would take fewer legal actions against cryptocurrency companies and allow them to innovate peacefully, but this remains speculative. Especially with Gary Gensler, a staunch adversary of cryptocurrencies, serving as SEC Chairman until 2026, Trump could replace him anytime, but pleasing the cryptocurrency industry ranks low among dozens of other priorities.
What the industry truly needs is a commitment to appropriate cryptocurrency regulation. Besides preserving the rights of Bitcoin miners and custodians, we need clear rules on what constitutes a security, how tokens and protocols engage with token holders in governance and revenue sharing, and how traditional institutions and financial entities can begin using and interacting with blockchain applications. These commitments are far more intricate but crucial for the long-term success of cryptocurrencies in the US and globally.
While a potential Trump presidency appears favorable for Bitcoin, with speculation of Bitcoin reaching $100,000 by the end of 2024 if he wins, the long-term prospects of the cryptocurrency industry remain relatively unchanged. Trump must first fulfill his promises and foster greater innovation in the blockchain sector to truly be regarded as the “cryptocurrency president”.
