As Donald Trump prepares for his second term, he’s bringing an ambitious and decidedly pro-crypto agenda to the Oval Office. Having made digital assets a key focus of his campaign, Trump’s promises range from creating a U.S. Bitcoin reserve to reshaping regulatory landscapes.
With a vision that could transform the U.S. into a major player in the global crypto scene, Trump’s promises have stirred excitement, scepticism, and questions about their feasibility and impact. Here, we delve into the top 10 promises he’s made, examining what they could mean for the future of crypto in America and beyond.
1. Turning the U.S. into the World’s Crypto Capital
Trump sets his sights on making the U.S. a global crypto hub, where blockchain companies and digital innovators can thrive without excessive red tape. The goal is to compete with the likes of Switzerland, Singapore, and Dubai by attracting crypto businesses with friendlier regulations. Yet, positioning the U.S. as a “crypto capital” would require comprehensive regulatory changes, and success would depend on more than campaign promises alone.
2. Building a Strategic Bitcoin Reserve
In a surprising move, Trump pledged to create a national Bitcoin reserve, making the U.S. one of the first countries to officially hold Bitcoin as part of its assets. This would represent a seismic shift, especially for Bitcoin’s image as an alternative to traditional finance. However, while a U.S. Bitcoin stockpile could enhance Bitcoin’s legitimacy, it also raises questions about how the government would manage the volatility and long-term risks involved in holding such an asset.
3. Halting the SEC’s Anti-Crypto Campaign
One of Trump’s boldest promises is to overhaul the SEC’s approach to crypto by firing current chair Gary Gensler, who has been accused of regulating crypto through enforcement rather than clear policy. By taking this step, Trump aims to foster a more welcoming environment for crypto innovation. However, the question remains: can a new leadership alone bring about the regulatory clarity the industry needs, or are deeper legislative changes required?
4. Blocking a Central Bank Digital Currency (CBDC)
Trump is firmly against a U.S. CBDC, warning it could open the door to government surveillance and control over personal finances. He sees a digital dollar as incompatible with the freedom-oriented ethos of crypto. Critics argue, however, that rejecting a CBDC could place the U.S. at a disadvantage globally as other countries move toward centralised digital currencies. Trump’s stance could keep crypto as an alternative, yet it might limit the U.S. in adopting cutting-edge financial technology.
5. Cutting Crypto Transaction Taxes
Trump has floated the idea of eliminating taxes on crypto transactions, seeing it as a way to encourage digital asset use in everyday life, from coffee purchases to online shopping. Though appealing to crypto users, this proposal would have to navigate complex tax law reforms. Critics also point out the potential for lost revenue, posing challenges for a nation already grappling with a large national debt.
6. Defending Americans’ Right to Self-Custody
Trump supports the right for individuals to keep their digital assets in private wallets, rather than relying on third-party custodians like exchanges. Self-custody is a core principle of crypto, aligning with the movement’s emphasis on financial autonomy. However, the approach comes with risks: individuals could be more vulnerable to hacks or loss without proper guidance, highlighting the need for educational initiatives alongside this promise.
7. Empowering the U.S. Bitcoin Mining Industry
With an eye on energy independence, Trump aims to turn the U.S. into a Bitcoin mining powerhouse, citing the country’s energy resources as an advantage. This vision includes making energy more accessible and affordable for Bitcoin miners, but the environmental impact is a sticking point. Whether Trump’s plan can make mining sustainable or increase renewable energy use remains to be seen, particularly as global concerns about energy consumption and climate change grow.
8. Offering Clemency to Ross Ulbricht
A particularly controversial promise, Trump has suggested commuting the sentence of Ross Ulbricht, the founder of Silk Road. For some, Ulbricht’s case embodies excessive punishment for a nonviolent offence, others see his actions as a cautionary tale. Trump’s interest in the case has been read as a nod to crypto’s roots in promoting individual freedom, but it also raises questions about the extent to which the government should relax enforcement in the crypto space.
9. Exploring Crypto for National Debt Repayment
Trump has floated the idea of leveraging crypto to address the national debt, particularly the eye-watering $35 trillion owed by the U.S. While this concept has no clear roadmap yet, it signals a willingness to experiment with unconventional fiscal tools. However, crypto’s volatility makes it a risky candidate for debt repayment, and sceptics question the practicality of this approach, which would likely face fierce resistance from traditional finance.
10. Backing Decentralised Finance (DeFi) Innovations
Trump has voiced support for DeFi, indicating plans to reduce regulatory barriers and foster innovation in the decentralised finance space. DeFi’s promise lies in offering financial services without traditional banks, but it’s also vulnerable to fraud and technical failures. Balancing DeFi innovation with adequate consumer protections will be key if Trump’s administration hopes to fulfil this promise.
Conclusion: A Bold Vision with Uncertain Outcomes
Donald Trump’s crypto blueprint promises a bold transformation for the U.S., positioning it as a leader in digital finance. His plans to remove regulatory hurdles, champion Bitcoin, and embrace DeFi could give the U.S. a powerful foothold in the crypto world. Yet, the success of these promises will depend on navigating substantial political, legal, and practical obstacles.
In a field as dynamic as crypto, even partial fulfilment of Trump’s agenda could change the landscape significantly. The question now is whether the administration will back its words with effective action – and whether the industry is ready to adapt.
