Trump advocates for Bitcoin with big promises

At the Bitcoin 2024 convention in Nashville, Tennessee, Republican presidential candidate Donald Trump made several pledges aimed at appealing to the cryptocurrency community, which reportedly numbers over 90 million people in the United States.

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Despite previously labelling Bitcoin a “scam” in 2021, Trump positioned himself as a pro-crypto candidate, promising to implement a range of crypto-friendly policies if elected. One of his key proposals includes dismissing Gary Gensler, the chairperson of the U.S. Securities and Exchange Commission (SEC), who has been a prominent figure in the U.S. government’s regulatory actions against cryptocurrency. Gensler’s SEC was responsible for the charges that led to Sam Bankman-Fried’s 25-year prison sentence for defrauding customers through the FTX exchange.

Trump also vowed to transform the U.S. into the “cryptocurrency capital of the world” and proposed creating a “national Bitcoin stockpile” from the Bitcoins currently held and those to be acquired by the government. This initiative was well-received at the convention and praised by figures such as Nigel Green, CEO of UK-based financial advisory deVere Group, who highlighted the potential economic benefits and the forward-thinking approach to the global financial system.

However, the move to relax regulations could also lead to increased risks, reminiscent of the FTX scandal where approximately one million customers lost their funds. Such deregulation could potentially lead to more instances of people losing their investments in the volatile cryptocurrency market.

Trump also announced plans to establish a “Bitcoin and crypto presidential advisory council” and to launch a national cryptocurrency mining initiative, which would require significant electricity resources. He suggested that this would be managed by constructing more power plants and utilizing fossil fuels, hinting at a reversal of climate change regulations enacted by the Biden administration.

In his speech, Trump criticized his electoral opponent, Vice President Kamala Harris, as being anti-crypto. This stance is likely a strategic move to garner support from the crypto industry. Trump claimed to have already received $25 million in campaign donations, some of which were in cryptocurrency.

Nigel Green pointed out that Harris would need to articulate a clear and supportive stance on crypto to remain competitive. This sentiment was echoed by a group of Democrat lawmakers, who urged the Democratic National Committee and Harris to embrace crypto-friendly policies in a recent letter.

In a surprising promise, Trump also suggested he would pardon Ross Ulbricht, who is serving two life sentences for running the Silk Road dark web drug marketplace and allegedly commissioning murders. Trump argued that Ulbricht had served enough time since his 2015 sentencing, implying a move towards a more open internet trading environment. However, it is important to note that the dark web, often utilizing Bitcoin, has been associated with illegal activities beyond drug trading, including human trafficking and contract killings.