From Ulbricht’s release to Gensler’s dismissal: the promises that could impact the sector.
The second presidency of Donald Trump could redefine the relationship between cryptocurrencies and regulation in the United States, with a focus on reducing regulatory constraints.
If kept, the promises of the new Republican President outline a program that could lead to a more favorable regulatory environment and improve the U.S. regulatory and institutional approach towards the digital assets sector.
As some analysts have suggested, Trump’s return to the White House has been positively received by the market, with the price of Bitcoin reaching a new all-time high, surpassing $75,000.
The promise to free Ulbricht
One of Trump’s most striking statements in his campaign was the promise to free Ross Ulbricht, the founder of Silk Road, the well-known darknet market that marked an important chapter in Bitcoin’s history. Sentenced to two life terms plus 40 years without parole, Ulbricht has become an emblematic figure, considered by many to be a martyr of freedom. On May 25, 2024, during an address at the Libertarian National Convention held in Washington, D.C., Donald Trump said:
“On day one, I will commute Ross Ulbricht’s sentence to time served. He’s already served 11 years. We’ll send him home.”
In response to Trump’s words, Ulbricht wrote on X:
“After 11 years in prison, it’s hard to express what I feel right now. It’s thanks to your unwavering support that I could have a second chance. Thank you. Thank you. Thank you.”
For the Bitcoin community, freeing Ulbricht would represent a highly significant symbolic victory.
Firing Gensler
During his campaign, Trump also expressed his intention to fire SEC Chair Gary Gensler, a move that could create more favorable conditions for the digital assets sector, particularly for projects currently classified as securities by the commission’s current head. In recent years, the SEC, under Gensler’s leadership, has pursued numerous lawsuits against crypto companies and has been criticized for an approach perceived as aggressive and restrictive.
During the Bitcoin Conference 2024 in Nashville, Trump promised to relieve Gensler of his duties, stating:
“On the day I take the oath, SEC Chair Gary Gensler will be fired, and I will appoint a new Chair who believes America should build the future, not block it, as they’re doing now. Gary Gensler is not a popular person in the crypto industry, and Kamala Harris wants to make him Treasury Secretary, which is not a good thing. He has harassed the cryptocurrency industry, but with me in charge, they’ll stop attacking you. My administration will provide regulatory clarity and support.”
These statements drew prolonged applause from the audience.
Bitcoin mining made in the USA
As he has repeatedly stated, Trump intends to make the United States a leader in the digital assets sector, limiting the influence of competing powers like China.
On June 12, 2024, during a dinner at Mar-a-Lago, Donald Trump met with a group of Bitcoin mining companies, expressing his support for the industry. Later, Trump stated he wanted to incentivize Bitcoin mining in the United States to counter China’s dominance, even with hyperbolic language:
“We want all the remaining bitcoins to be made in the United States!”
During his address at the Bitcoin Conference 2024, he said:
“Bitcoin is like the steel industry a hundred years ago. I think it’s just getting started. In just 15 years, Bitcoin has gone from an idea posted anonymously on an online forum to become the ninth most valuable asset in the world. It’s already bigger than Exxon Mobil and will soon surpass the entire silver market. And one day, it will probably surpass gold, too.”
Referring to the mining industry, Trump stated:
“With low energy costs, America will become the undisputed powerhouse of Bitcoin mining. You won’t have to move your families to China. As we implement these reforms, Bitcoin and cryptocurrencies will grow our economy, solidifying American financial dominance and strengthening the entire country in the long term. I want America to be the leading nation in Bitcoin mining technology. We will build power plants at the mining farm sites, relieving people from the obligation to meet ridiculous environmental requirements and using fossil fuels to produce the necessary electricity, because we have to. We will be fuel for your industry, not destroy it. We’ll make sure you don’t have to move your operations to China or elsewhere. America will be the best place for Bitcoin mining.”
Opposition to CBDCs
Another key aspect of Trump’s campaign is his clear opposition to the potential introduction of a CBDC in the United States. Trump has openly criticized the idea of a central bank digital currency issued by the Federal Reserve, calling it a threat to financial freedom and citizens’ privacy. During a campaign speech, Trump stated that “a CBDC represents centralized control that could limit Americans’ economic freedoms,” highlighting the risk of a system where every transaction would be tracked and monitored by the government. Trump added that if reelected, he would block any attempt to implement a CBDC, stating:
“I will immediately order the Treasury Department and other federal agencies to cease and desist all steps necessary for the creation of a CBDC. There will never be a CBDC while I am President of the United States. These central bank digital currencies represent a grave risk to citizens’ freedom and privacy. I will not allow the government to have total control over Americans’ financial transactions. Instead, I will defend your right to self-custody your digital assets, ensuring that you can hold and manage your Bitcoin and other cryptocurrencies without government interference. My administration will firmly oppose the creation of any CBDC, protecting your financial freedom and your privacy.”
Caution and skepticism
Despite Trump’s campaign statements, there are doubts about how many of these promises will actually be kept. Supported by BTC Inc., the company behind Bitcoin Magazine, Trump has positioned himself as the ideal crypto candidate, yet it is never wise to take a politician’s campaign promises at face value.
It’s important to consider Trump’s track record on fulfilling campaign promises. According to the Trump-O-Meter, a tool for tracking 100 promises made during his 2016 campaign, only 23% were fully kept, while 22% were only partially fulfilled. During his previous presidency, while he upheld some commitments, such as tax cuts and the withdrawal from the Paris Climate Agreement, others were left incomplete. This suggests the need for caution in evaluating the actual implementation of his promises for the digital assets sector.
One thing is certain: Bitcoin remains indifferent to Trump’s election or the actions of any other government or politician. Bitcoin is a neutral tool that can be used by anyone without needing permission from a politician, bank, or government. It is a supranational network that operates independently and is a technological protocol that cannot be stopped. Bitcoin continues on its path, producing one block after another, about every 10 minutes.
