TLDR
- Donald Trump promised to make the US the “crypto capital of the planet” if re-elected president.
- Trump pledged not to sell any of the US government’s current Bitcoin holdings.
- Questions remain about seized Bitcoin assets from cases like Bitfinex and Silk Road.
- Other candidates like Robert F. Kennedy Jr. proposed more aggressive Bitcoin acquisition plans.
- Trump’s stance on crypto has shifted significantly since his time in office.
Former President Donald Trump, now running for re-election, has made a dramatic shift in his stance on cryptocurrency.
Speaking at the Bitcoin 2024 conference in Nashville, Trump promised to make the United States the “crypto capital of the planet” and a “Bitcoin superpower” if he returns to the White House.
This marks a significant change from Trump’s previous views. In 2019, while president, he said he was “not a fan” of Bitcoin and other cryptocurrencies, calling their value “based on thin air.”
He even described Bitcoin as seeming like a “scam” in 2021. Now, Trump is embracing the technology and its supporters.
A key promise in Trump’s speech was that his administration would not sell any of the Bitcoin the US government currently holds.
The government reportedly owns about 212,847 Bitcoin, worth approximately $14.4 billion. Much of this comes from seizures in criminal cases.
There's a slight problem no one is acknowledging regarding the plan for the US Federal Government to HODL all 200,000 BTC in its possession:
95,000 BTC from that stash rightfully belongs to @bitfinex.
— Jameson Lopp (@lopp) July 27, 2024
However, questions remain about what might happen with some of these seized assets. For example, about 94,636 Bitcoin came from the Bitfinex hack case.
It’s unclear if these funds might eventually be returned to victims. Trump’s pledge not to sell doesn’t necessarily mean the funds won’t be returned if courts order it.
Trump also promised to fire Gary Gensler, the current chair of the Securities and Exchange Commission, who has taken a tough stance on crypto regulation.
He proposed creating a “Bitcoin and crypto presidential advisory council” made up of people who “love your industry.”
Other candidates have made even bolder proposals. Robert F. Kennedy Jr., running as an independent, promised to create a reserve of 4 million Bitcoin if elected.
Republican Senator Cynthia Lummis proposed legislation to acquire 1 million Bitcoin over five years to help reduce national debt.
Trump’s new crypto-friendly approach comes as the Republican Party seeks to make cryptocurrency regulation a campaign issue. They’re positioning themselves against what they see as the Biden administration’s stricter approach to the industry.
The shift also coincides with increased support for Trump from the tech and crypto communities. He has raised over $4 million in cryptocurrency donations, including large contributions from prominent figures like the Winklevoss twins.
However, the race for crypto support isn’t over. Reports suggest Vice President Kamala Harris, the likely Democratic nominee, is reaching out to tech donors and exploring her stance on cryptocurrency issues.
