Trump victory: US crypto industry anticipates clarity, success

As a seasoned analyst with over two decades of experience in political economy and financial markets, I must say that the potential outcomes from Donald Trump’s presidency, if indeed he wins the November 5 election, are intriguing for the crypto community. With his pledge to fire Gary Gensler, support American Bitcoin mining, create a strategic Bitcoin reserve, prevent a central bank digital currency (CBDC), and free Ross Ulbricht, there is a sense of optimism in the air among some crypto enthusiasts.

It’s predicted that Donald Trump, a previous U.S. President, will emerge victorious in the November 5th U.S. presidential election.

Trump, the Republican nominee, has nearly received the necessary electoral votes to claim victory.

In crucial swing states such as Pennsylvania, Wisconsin, and Michigan, Vice President Kamala Harris trailed behind her main rival in the election.

During his campaign, Trump expressed numerous commitments to the cryptocurrency community. Among these were:

Due to these pledged commitments, there’s widespread optimism within the crypto sector about the upcoming presidency, yet some advocates are advising caution, stressing that expectations should not run excessively high.

Only time will tell how much of President-elect Trump’s agenda will ultimately be enacted.

Fire Gary Gensler

Trump has pledged to remove Gensler from the SEC on his first day in office.

In the year 2021, President Joe Biden selected Gensler to serve as the chairman of the Securities and Exchange Commission (SEC). Throughout his term in office, the SEC under his leadership has filed lawsuits against several well-known cryptocurrency exchanges and projects.

Enforcement actions were initiated by the SEC against several notable entities in the digital asset sector, including Coinbase – North America’s largest exchange, Uniswap – a decentralized exchange platform, Lbry – a blockchain video streaming company, Immutable – a Web3 game development firm, and Consensys – the developer behind MetaMask wallet, among others.

In every instance, the Securities and Exchange Commission (SEC) argues that many cryptocurrencies fall under the category of securities. As a result, the creators of these digital currencies are required to register them with the SEC.

A substantial number of cryptocurrency enterprises and their patrons have taken issue with the application of securities legislation as stated, and Trump has publicly expressed his intention to remove Gensler due to it.

In April 2025, Gensler’s term comes to an end, opening the possibility for Trump to appoint a new figure more favorable towards cryptocurrencies in his place. Alternatively, Trump could potentially dismiss Gensler immediately on his first day in office, although it remains uncertain if Gensler’s actions as chairman would be considered valid grounds for termination, a decision that may lead to legal disputes.

Another scenario that could play it is for Gensler to resign, sparing Trump the need to fire him.

Free Ross Ulbricht

Trump victory: US crypto industry anticipates clarity, success

On his first day in office, Trump intends to grant clemency to the previous administrator of the darknet marketplace, Ulbricht, which could potentially lead to his immediate release.

Ulbricht is recognized as the founder of the online marketplace known as Silk Road. This platform enabled any user to trade various items, from legal goods to illicit ones like unlicensed firearms and narcotics, using Bitcoin as payment. The Silk Road is reported by Ars Technica to have facilitated approximately $230 million in transactions throughout its existence.

In 2013, Ulbright was apprehended and is now imprisoned under two life terms, along with an additional 40 years, with no chance for parole, due to his involvement in establishing Silk Road. His backers argue that the severity of his punishment is disproportionate, given that he was primarily a web designer who merely enabled drug transactions without engaging in any acts of violence.

Trump has the option to grant clemency by releasing him from the remaining part of his sentence (commuting), effectively freeing him instantly, or he could modify the sentence length to something significantly less than life without parole.

Support American Bitcoin mining

As a crypto investor, I’m excited about Trump’s commitment to promote Bitcoin mining within the U.S. borders. He’s made it clear that his goal is for the majority of new Bitcoins to be ‘minted’ right here at home, which could potentially boost American economic growth and job creation in this burgeoning industry.

Despite the fact that the incoming president has yet to reveal specific strategies for achieving this goal, certain individuals within the cryptocurrency community view his pro-mining stance as favorable and potentially beneficial, suggesting a positive trend in the market.

For instance, Samson Mow, the CEO of Bitcoin fintech firm Jan3, stated on June 13th that Trump’s supportive view on mining could accelerate progress even further.

Bitcoin mining is sometimes opposed by environmental groups, thanks to the perception that it has a large carbon footprint. However, a pro-mining president could use their position to prevent new environmental regulations against Bitcoin mining from being enacted.

Create a strategic Bitcoin reserve

As a crypto investor, I’ve taken notice of President Trump’s pledge to establish a “strategic Bitcoin reserve” by directing law enforcement to retain the Bitcoins they confiscate from illicit activities. Advocates of this approach argue that Bitcoin serves as a valuable reserve asset and that hoarding it could potentially aid in settling the U.S.’s national debt in the future.

Senator Cynthia Lummis of Wyoming, known for her pro-cryptocurrency stance, proposed a bill back in July aimed at establishing a digital asset reserve. However, as of now, this bill hasn’t been approved yet.

Prevent a CBDC

Trump has vowed not to establish a government-controlled digital currency or a blockchain payment system operated by the government. Digital currencies based on blockchain technology, much like those employed by private cryptocurrencies, would be managed by the government in CBDCs, unlike their decentralized counterparts.

There’s a wide range of opinions within the digital currency sector about Central Bank Digital Currencies (CBDCs). Some view CBDCs as a potential upgrade from traditional banks, which can be slow and complicated, whereas others perceive them as potentially ominous systems that might erode personal privacy.

Despite this, Trump has declared his intention to halt the creation of an official U.S. digital currency, a stance that some cryptocurrency enthusiasts view favorably.

Not everyone is a believer

Although Trump has pledged numerous commitments towards cryptocurrency users and the sector at large, there’s skepticism within the industry about whether he will deliver on those promises, or if they are achievable in the first place.

For instance, In reaction to Trump’s assertion that all remaining Bitcoins should be produced within the US, Eric Vorhees, Shapeshift founder, declared on June 13 that this perspective was “illogical and self-serving nationalistic rhetoric, revealing a lack of comprehension regarding Bitcoin, as well as a lack of insight into economics in general.

Furthermore, the founder of Casa wallet, Jameson Lopp, expressed his disagreement with President Trump’s proposal for a strategic Bitcoin reserve. He argued that about half of the Bitcoin confiscated by law enforcement might actually be property of the Bitfinex exchange and should be restored to it.

2024-11-06 10:58