As Election Night unfolded at Mar-a-Lago on November 5, 2024, Donald Trump celebrated his prospective victory surrounded by notable figures like Elon Musk, Robert F. Kennedy Jr., and Howard Lutnick, CEO of Cantor Fitzgerald. As diverse as their respective backgrounds are, they do share one common interest: cryptocurrency.
Trump had rarely discussed crypto until recently, but the industry has become a significant source of campaign funding for him and related political action committees. In order to secure this support, he has made substantial promises to the crypto community (interestingly, Project 2025 contains no references at all to Bitcoin or cryptocurrency in general).
Digital asset markets responded enthusiastically on election Night. According to Brave New Coin’s Bitcoin liquid Index, Bitcoin surged to a record high of over $75,000 as Trump’s win seemed imminent. Stocks linked to crypto, such as Coinbase and MicroStrategy, also saw after-hours gains.
Since election day on November 6th, Bitcoin has achieved two new all-time-highs in quick succession. Source: Brave New Coin Bitcoin Liquid Index
Trump’s Pledge to Hold Onto Government-Owned Bitcoin
In July, Trump headlined the largest Bitcoin conference of the year in Nashville. During his keynote speech, he vowed that if he returned to the White House, the federal government would never sell off its bitcoin holdings.
“For too long our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin,” Trump declared.
He promised to maintain the current level of bitcoin that the U.S. has acquired from seizing assets tied to financial crimes. “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,” he said.
Currently, the U.S. Marshals Service frequently auctions off bitcoin and other cryptocurrencies held in government coffers. These sales can sometimes lead to drops in crypto prices, as seen earlier this year when Germany began liquidating hundreds of millions of dollars worth of seized bitcoin.
Plans to Shake Up Crypto Regulation Leadership
Trump has been vocal about his intention to remove U.S. Securities and Exchange Commission Chairman Gary Gensler from his position. “On day one, I will fire Gary Gensler,” Trump stated, referring to the SEC chair appointed by President Joe Biden who has taken a stringent approach to crypto regulation.
However, the president lacks the authority to fire the SEC chair directly. Even if Trump appoints a new chairperson, Gensler will remain a commissioner of the independent agency. Gensler has initiated over 100 actions against crypto firms during his tenure, asserting that much of the industry falls under the SEC’s jurisdiction. Crypto companies argue that these legal battles have not provided the regulatory clarity they seek and instead represent an overreach by the commission.
To address these concerns, Trump pledged to establish a “bitcoin and crypto presidential advisory council.” He assured, “The rules will be written by people who love your industry, not hate your industry.”
Meeting with Bitcoin Mining Leaders
In June, at his Mar-a-Lago Club in Palm Beach, Florida, Trump met privately with about a dozen bitcoin mining executives and experts. The hour-and-a-half session marked his first meeting with the technologists who maintain the $1.5 trillion bitcoin network by operating extensive arrays of high-powered computers.
The intimate gathering included representatives from major mining companies like Riot Platforms, Marathon Digital Holdings, Terawulf, CleanSpark, and Core Scientific. Shortly after the meeting, Trump took to social media to praise the bitcoin mining industry.
“Biden’s hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT!!!” he posted on Truth Social. Since then, he has reiterated his support for domestic crypto mining.
In Nashville, Trump expressed his aspiration for the United States to become the global leader in cryptocurrency by mining, minting, and manufacturing it domestically. Furthermore, he enthusiastically projected that the nation would generate such an excess of electricity that citizens would implore for a reduction, overwhelmed by the abundance.
Commitment to Lower Interest Rates
In August, Trump announced that, if elected, he would work to lower interest rates. The Federal Reserve, which sets the benchmark rate and guides monetary policy, operates independently of the White House. Despite this separation, Trump expressed his intention to influence rate decisions.
In September, Federal Reserve Chair Jerome Powell cut rates by half a point, initiating the first easing campaign in four years. Historically, rate cuts and monetary policy easing have correlated with surges in crypto prices as borrowing money becomes cheaper.
With a Republican-controlled Senate likely, Trump faces few obstacles in implementing a more crypto-friendly agenda. His promises signal a potential shift in how the federal government interacts with digital currencies and the blockchain industry.
Trump’s stance contrasts sharply with that of figures like Senator Elizabeth Warren, whom he views as an opponent to the crypto industry. His commitments have energized crypto enthusiasts who see his policies as a pathway to greater adoption and less regulatory friction.
Source: https://bravenewcoin.com/insights/close-up-what-exactly-has-trump-promised-the-crypto-sector