In a bold move to position himself as the pro-cryptocurrency candidate ahead of the upcoming presidential election, Republican contender Donald Trump addressed the Bitcoin 2024 convention in Nashville. Trump emphasized the need for the U.S. to dominate the cryptocurrency sector to prevent China from taking the lead, reflecting his latest effort to court advocates of digital currencies.
Pro-Crypto Stance and Policy Proposals
During his speech, Trump criticized the current administration's regulatory approach towards cryptocurrencies and promised a more favorable environment for the sector under his leadership. "If we don't embrace crypto and bitcoin technology, China will, other countries will. They'll dominate, and we cannot let China dominate," Trump warned.
He outlined his plans to establish a presidential advisory council on cryptocurrencies and create a national stockpile of Bitcoin using the cryptocurrency the U.S. government currently holds, mainly acquired through law enforcement actions. "Never sell your bitcoin," Trump advised. "If I am elected, it will be the policy of my administration, the United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future."
Shifting Views and Market Reaction
Trump, who had previously dismissed cryptocurrency as a "scam" in 2021, now advocates for expanding Bitcoin mining by U.S. firms. His shift in stance comes as he seeks to align with the growing political influence of digital asset proponents.
Following Trump's speech, Bitcoin's price initially dipped but then rebounded, reflecting a 0.94% increase to $68,182.
Controversial Promises
In addition to his cryptocurrency policies, Trump reiterated his intention to commute the sentence of Ross Ulbricht, the creator of the Silk Road website, who is serving a life sentence for facilitating the sale of illegal products. This pledge garnered significant applause and chants of "Free Ross" from the audience.
Global and Domestic Crypto Landscape
The U.S., along with other countries, has expressed concerns over the potential risks posed by privately operated, highly volatile digital currencies, including threats to financial stability, increased financial crime, and investor protection issues. Despite these concerns, Trump’s proposals are seen as a significant move to legitimize cryptocurrency.
Jack Mallers, CEO of global bitcoin app Strike, described Trump's proposal to create a strategic bitcoin reserve as an "unbelievable vote of confidence."
Regulatory Challenges
The cryptocurrency sector faces ongoing regulatory challenges under President Joe Biden's administration. The Securities and Exchange Commission (SEC) has taken enforcement actions against several crypto companies, alleging unregistered securities trading, which the firms deny.
Political Implications
Crypto advocates argue that digital asset users represent a growing political force. A group of nearly 30 Democratic lawmakers and Congressional candidates recently urged the Democratic National Committee and Vice President Kamala Harris to adopt a forward-looking approach to digital assets, highlighting the electoral significance of the issue.
As the 2024 presidential election approaches, Trump's pro-cryptocurrency stance aims to rally support from digital asset proponents, potentially shaping the future of cryptocurrency regulation and leadership in the U.S.
Source: Reuters
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