Trump Supports Crypto and Opposes CBDCs in Campaign Speech

• Trump promises to support crypto rights, oppose CBDCs, and keep Elizabeth Warren away from the crypto community.
• Biden’s crypto policies are destructive, claims Trump, who also labeled Biden as the worst president in history.
• Promising to commute Ross Ulbricht’s sentence if re-elected, Trump drew cheers from supporters.

Former U.S. President Donald Trump has pledged to promote Bitcoin and cryptocurrencies if elected president in the upcoming election. Trump believes, “Bitcoin will be made in the USA, not driven overseas.” 

The Republican Presidential candidate promised to defend the freedom of self-determination, stating,

I will also stop Joe Biden’s crusade to crush crypto. We’re going to stop it. I will ensure that the future of crypto and the future of bitcoin will be made in the USA, not driven overseas.

If re-elected, Trump promised to release Silk Road inventor Ross Ulbricht, who was convicted to two life terms plus 40 years for founding the darknet bazaar. Trump vowed to shorten Ulbricht’s sentence to time served, and several people held placards saying “Free Ross.” Ulbricht was jailed in 2015 after discovering the darknet, which was used to acquire and sell illegal products such as narcotics.

Biden Administration Seeks Balanced Crypto Regulation

The White House opposes the Financial Innovation and Technology(FIT21) for the 21st Century Act, a measure governing crypto markets, citing concerns about investor safeguards. President Joe Biden’s government has not vowed to veto the law, which may boost the cryptocurrency business. 

Unlike previous pronouncements by Securities and Exchange Commission Chair Gary Gensler, the White House supports working with Congress on future legislation addressing crypto markets. The Administration has expressed willingness to collaborate with Congress to establish a comprehensive regulatory framework for digital assets, promoting responsible development and global financial system leadership. 

Trump’s Evolving Perspective on Crypto

Trump’s attitude on cryptocurrencies has altered dramatically since his 2019 X post in which he stated: “I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” Since leaving office, Trump has created three non-fungible token (NFT) collections. Trump emphasized the importance of embracing cryptocurrency to prevent the migration of crypto businesses overseas due to regulatory challenges

Trump emphasized his commitment to protecting the right to self-custody in crypto, reassuring the nation’s 50 million crypto holders. He promised to prevent Elizabeth Warren and her associates from meddling with their bitcoin holdings and asserted his opposition to creating a central bank digital currency (CBDC).

The Federal Reserve Board (2022) recommends a U.S. Central Bank Digital Currency (CBDC) that is both privacy-protected and identity-verified, assuring compliance with laws to combat terrorism funding and money laundering. The adoption of CBDCs will be determined by protecting transaction privacy and user identities and the number of payment service providers (PSPs) permitted to offer these services. Stringent privacy and identity criteria may have counterintuitive consequences, with high privacy standards potentially increasing the attraction of a US CBDC to consumers worried about the banking system’s safety and soundness. 

Metalawman advises against resolving cryptocurrency lawsuits with the existing SEC before the election results. With Trump and Kennedy campaigning for change, other open-minded leaders like Hester Peirce might take control. This might result in voluntary dismissals of non-fraudulent cryptocurrency cases launched under the Gensler administration, emphasizing investor protection rather than political enforcement.