It has been a trend for the crypto market to fluctuate after each presidential election. When President Biden was elected back in 2020, the price of cryptocurrencies began to rise. During his tenure in 2021, we saw a crypto market that was more prosperous than ever because of multiple factors like the inflation crisis and COVID-19. This time, pro-crypto candidate Trump was elected as the president, whose campaign slogan was Bitcoin-friendly administration. In this article, we’ll explore Trump’s crypto agenda and what it could mean for the future of digital currency in the U.S.
Will Donald Trump Fulfill His Promises?
Republican candidate Donald Trump won the election and became the 47th President of the United States. He defeated his opposition, Democratic candidate Kamala Harris, by securing 295 electoral votes. During his acceptance speech, Trump vowed to fight for all American families and their future and asserted that this would be the country’s golden age. He would become the president after being sworn in at the inauguration ceremony on January 20, 2025, and would move to the White House.
Trump, the once skeptical viewer of crypto, has turned himself into a pro-advocate. During the entire campaign, he boldly expressed his support for Bitcoin and cryptocurrencies. At the Bitcoin conference, which happened in July in Nashville, the former president, in his keynote address, made several noteworthy promises that sparked discussion in the community.
Fire Gary Gensler
Earlier, Trump made a promise that he would fire Gary Gensler, the chair of SEC, on the first day of his office. He stated,
On day one, I will fire Gary Gensler
Gary Gensler was appointed as the head of SEC by President Joe Biden in 2021. During his tenure, he sued numerous crypto exchanges and projects and became one of the crypto community’s hated figures. Furthermore, during several of his interviews, he said that most of the crypto industry comes under the jurisdiction of the SEC. In response to these repeated allegations by the SEC, crypto firms argue that there has yet to be a clear regulatory clarification for the crypto industry.
Trump, in order to clarify the rules, said that he would create a Bitcoin and crypto presidential advisory council. And that the rules will be written by people who love the crypto industry and not by people who hate them.
Trump’s Win Boosts Crypto Optimism, Market Sees Major GainsStrategic Bitcoin Reserve
Trump has made a vow that he will thwart the government from selling Bitcoin holdings by creating a strategic Bitcoin reserve. At present, Bitcoins, which were seized during various raids and held by the government, are being sold off at auctions by the U.S. Marshals Service. These sell-offs, similar to the recent Bitcoin sell-off by the German government, cause the price of BTC to fall, affecting traders’ strategies. It was for this reason that Trump said and proposed,
For too long, our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin. If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.
Prevention of CBDC
Central Bank Digital Currency (CBDC) is a blockchain-based digital currency that the government has been attempting to create. The Federal Reserve has yet to make a final decision regarding it but is actively exploring the benefits and risks associated with it. Regarding the CBDC issue, Trump has promised that a centralized digital currency will not be created.
Support Crypto Mining in America
The USA used to be the largest Bitcoin miner in the world. But all this changed when environmentalists started protesting against mining Bitcoin, and the increasing electricity costs forced Bitcoin miners to look overseas, such as in African countries or Russia, to mine Bitcoin. Although Bitcoin is still being mined in the US when compared to the peak period, it is a lot less. However, Trump wants all the remaining Bitcoin to be mined, minted, and made in the USA, and that it would help the US become energy dominant. He said,
If crypto is going to define the future, I want it to be mined, minted and made in the USA. We will be creating so much electricity that you’ll be saying, ‘Please, please, President, we don’t want any more electricity. We can’t stand it!
Releasing of Ross Ulbricht
Ross Ulbricht is the creator of the famous website Silk Road, where anyone can buy and sell whatever they want, including drugs and unmarked guns, for Bitcoin. He was arrested in 2013 and is serving two life sentences plus 40 years without parole. Many people in the crypto community argue that Ulbricht was only the developer of the website and that this sentence is too harsh for merely facilitating the trade. The president has the unique power to commute or reduce a person’s sentence, and Trump has promised that he will commute his sentence.
How Likely Can Trump’s Promises Pass the Chambers of Congress?
The president cannot pass bills alone; they must go through Congress. For a bill to become law, it needs approval from both the House of Representatives and the Senate. Currently, in the Senate, Republicans control 53 seats, and Democrats hold 45. In the House of Representatives, Republicans currently hold 211 seats, and Democrats hold 199, with some results still pending. A majority of 218 seats is needed to control the House and pass legislation without support from the minority party. If Republicans gain control of both chambers, they could pass bills more easily.
Federal Rate Cut
On November 7th, the US Federal Reserve announced that they would reduce the interest rate by 25 basis points to 4.75%. During the 7th policy decision for 2024, policymakers voted to reduce the federal rate cut, thereby easing inflation and improving the unemployment rates. This is the second time in a year that the Fed has reduced the interest rate, with the last time being in September, when the interest rate was reduced by 50 basis points. The Federal Reserve Chair Jerome Powell said that the rate cut has nothing to do with the elections and that the members of the Federal Open Market Committee (FOMC) unanimously voted to reduce the interest rates.
The Future of Crypto
After pro-crypto candidate Trump was elected as president, various markets, including the S&P 500 and Crypto, saw a significant rise in prices. Especially various cryptocurrencies, with Bitcoin touching a new ATH of $77,252 and other coins seeing an increase in price by various degrees, such as Solana reaching $200 and DOGE experiencing a 30% increase.
Furthermore, along with the Fed rate cut, which would boost the crypto market, the crypto community can expect a major rally on the horizon. Additionally, with Trump as the president, a crypto-friendly SEC could be possible, which would clarify the status of various cryptocurrencies.
Solana Price Jumps Over $200 Following Trump’s ReelectionConclusion
With Donald Trump being elected as the 47th President, the crypto industry could experience a major transformative period. His pro-crypto stance, combined with potential regulatory shifts and new policies, offers hope for both clarity and support in the crypto space that has faced uncertainty and challenges. Trump’s key promises, such as firing Gary Gensler, preventing the development of a CBDC, and establishing a strategic Bitcoin reserve, signal a potential shift toward a more crypto-friendly U.S. government.
While his administration’s success in passing these promises will depend heavily on support from Congress, the early market rally shows that investor sentiment is optimistic. If these policies come to fruition, the market can witness significant growth in both the U.S. crypto market and broader blockchain technology adoption, potentially positioning the United States as a global leader in the digital economy. For now, all eyes are on the new administration to see whether these promises can be translated into meaningful actions for the future of crypto.
