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Returning to the helm once again, Donald Trump has been elected as president of the United States, much to the delight of the crypto industry.
Preemptively crowning himself as "Crypto President" during his campaign, Trump won the hearts and minds of the crypto industry. Democrat priorities of abortion and antisexism were overshadowed by a commitment to boost crypto profits through industry-friendly regulation.
But what exactly did Trump promise to the industry? Here's Blockhead's refresher course:
Bitcoin Stockpile
Speaking in Nashville in July at Bitcoin 2024, Trump said he would ensure that the federal government would never sell its Bitcoin holdings. “For too long our government has violated the cardinal rule that every bitcoiner knows by heart: "Never sell your Bitcoin,” Trump said during his keynote speech.
“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.
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The move would counter the US Marshals Service, which regularly auctions off the country's crypto holdings. When Germany liquidated hundreds of millions of dollars worth of its Bitcoin earlier this year, the market suffered a wider selloff.
The US currently holds 203,650 BTC ($14.95B).
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Gone With Gensler
Supposedly top of the agenda, Trump pledged to fire Securities and Exchange Commission (SEC) chair Gary Gensler on the first day of his Presidency.
“On day one, I will fire Gary Gensler,” Trump famously said. However, it's questionable as to whether the President actually has the power to fire the SEC chair.
Nonetheless, with Gensler bringing over 100 cases against the crypto industry during his tenure, the chair's reputation as the archenemy of the industry is expected to be at stake.
Bitcoin for the People, By the People
Crypto hasn't exactly had the warmest of welcomes in the US and the likes of FTX hasn't exactly helped. Trump has nonetheless vowed to create a “bitcoin and crypto presidential advisory council.”
“The rules will be written by people who love your industry, not hate your industry,” he said, positioning himself as a true ally of the space.
It's not clear exactly what this advisory council will look like but if one was to form, it'll be interesting to monitor how it shapes out.
"Upon taking office, I will immediately appoint a Bitcoin and crypto Presidential Advisory Council," Trump said in Nashville.
"Their task will be to design transparent regulatory guidance for the benefit of the entire industry, and they will get it done in 100 days. We will have regulations, but from now on, the rules will be written by people who love your industry, not hate your industry."
Miners for America
Where there's Bitcoin success, there's mining success. Just this week, Marathon Digital and Riot Platforms both reached record Bitcoin production since Bitcoin's halving in April, which reduced miner rewards by half, from 6.25 BTC to 3.125 BTC per block.
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Capitalising on this sector, Trump met with a dozen Bitcoin mining executives in June at the Mar-a-Lago country club. Representatives from Riot Platforms, Marathon Digital Holdings, Terawulf, CleanSpark and Core Scientific, all attended the meeting, forming a coalition of Bitcoin miners.
Shortly after the meeting, Trump posted on Truth Social that Bitcoin will only be mined in America.
“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!!!” Trump posted.
He then reiterated the commitment in Nashville one month later. “If crypto is going to define the future, I want it to be mined, minted and made in the USA,” Trump said at Bitcoin 2024.
“We will be creating so much electricity that you’ll be saying, ‘Please, please, President, we don’t want any more electricity. We can’t stand it!’” he added.
Crypto Capital
If America wasn't already centre of the world in the eyes of Trump, the newly elected President has vowed to make America the "crypto capital of the planet."
Exactly what this would look like is uncertain but its goal seems to be driving crypto innovation to America. With the likes of Coinbase threatening to leave the US due to unfavorable regulation policies, turning America into a central hub for crypto would not only retain American crypto firms but should attract FDI.
"If crypto is going to define the future, I want it mined, minted, and made in the USA. Ultimately, my promise to each and every one of you is this, I will be the pro-innovation and pro-Bitcoin president that America needs and our citizens deserve," Trump said in Nashville.
Crypto Tax
No one likes tax. Especially crypto bros. Music to their ears, Trump has promised to remove capital gains tax on Bitcoin transactions. Currently, short-term capital gains on cryptocurrency held for less than a year are taxed at ordinary income rates, which range from 10% to 37% based on income and tax bracket.
Long-term gains on cryptocurrency held for over a year are subject to a lower tax rate of 0% to 20%.
Lower taxes might not be good for state funding but will certainly be a boost for the local crypto industry.
CBDCNO
CBDCs might be a hot topic for sections of the crypto industry. But not for Trump.
"They want to move the creation of a central bank digital currency. It's over," Trump said at Bitcoin 2024. "Forget it. CBDC. There will never be a CBDC while I'm president of the United States."
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