Trump’s promises to safeguard Bitcoin mining rights and stop the creation of a Central Bank Digital Currency (CBDC) have garnered media attention.
With a bold pro-crypto agenda, former President Donald Trump is trying to win over cryptocurrency supporters by making big promises to the community.
Trump’s promises to defend Bitcoin mining rights, stop the creation of a Central Bank Digital Currency (CBDC), and even improve America’s reputation in the international cryptocurrency market have garnered media attention.
However, there are still concerns about his ability to fulfill his promises, as is the case with many political pledges.
Republican Party Unveils Draft Political Program
In July, the Republican Party unveiled a draft political program that highlighted cryptocurrency under its innovation agenda, alongside artificial intelligence and space exploration.
The platform pledged to “end Democrats’ unlawful and unAmerican crypto crackdown” and said that the rights of Americans to mine, hold, and trade digital assets without interference from the government would be supported under a Trump administration.
At the 2024 Bitcoin Conference in Nashville, Trump further rallied crypto enthusiasts, promising that any “anti-crypto crusade” by the current administration would end under his watch.
But implementing this vision faces several obstacles.
For one, Trump has expressed ambitious ideas about the domestic Bitcoin mining industry.
He recommended that all of the remaining Bitcoin be mined in the US in a post on his social media site, Truth Social.
Although some people find the idea appealing, it conflicts with Bitcoin’s decentralized structure.
Although the U.S. could lead in mining, industry voices like Bitfarms CEO Ben Gagnon concur that centralizing all production domestically goes against the decentralization that was the foundation of Bitcoin.
Trump’s proposal to establish a national Bitcoin reserve is another divisive pledge.
In an attempt to combat the nation’s soaring debt of over $35 trillion, Trump has alluded to creating a strategic Bitcoin hoard.
Although intriguing, the proposal has many problems.
Much of the U.S. government’s current Bitcoin holdings, which are derived from assets seized in criminal cases, are subject to legal challenges; some of these assets are anticipated to be returned to their original owners.
Senator Cynthia Lummis Seeks to Establish a Bitcoin Reserve
Additionally, a proposal from Senator Cynthia Lummis seeks to establish a Bitcoin reserve, but significant political support would be required to bring such a fund to life.
Regulation remains one of the biggest issues for the crypto sector, and Trump has taken a firm stance on it.
He has promised to fire SEC Chair Gary Gensler on “day one” to introduce more crypto-friendly regulations.
JUST IN: Crowd goes absolutely nuts after Donald Trump vows to fire SEC Chairman Gary Gensler during the Bitcoin Conference in Nashville, Tennessee.
— Collin Rugg (@CollinRugg) July 27, 2024
Trump was clearly taken aback at the crowd's reaction when he made the announcement.
"On day one, I will fire Gary Gensler and… pic.twitter.com/0CyOMaY6FY
However, firing Gensler, a senior official, would probably be a drawn-out legal procedure that would need justification and might provoke political backlash.
A centralized digital currency would undermine financial privacy, according to Trump, who has pledged to thwart any move toward a CBDC in yet another anti-regulatory stance.
Trump has also promised to commute the sentence of Ross Ulbricht, the creator of Silk Road, the notorious darknet marketplace that used Bitcoin to facilitate the trade of illegal goods.
At a Libertarian National Convention event, Trump declared that he would “set Ulbricht free” on “day one” if elected.
Another core promise is Trump’s endorsement of the “right to self-custody,” which he vows to enshrine into law.
While some people find resonance in these promises, some cryptocurrency enthusiasts are wary due to Trump’s history of making audacious claims and then retracting them.