Donald Trump woos crypto investors, says will lighten restrictions, create a ‘stockpile of bitcoins’

Republican presidential candidate Donald Trump has made a strategic move to gain favour with cryptocurrency enthusiasts by promising to reduce restrictions and create a national “stockpile of bitcoins.”

Speaking at the Bitcoin 2024 convention in Nashville, Trump emphasized that the United States must lead the cryptocurrency sector to prevent China from dominating it. This marks a significant shift for Trump, who previously dismissed cryptocurrency as a “scam.”

Trump’s appearance at the convention showcased his intent to position himself as the pro-cryptocurrency candidate for the upcoming November 5 presidential election.

He pledged to implement friendlier regulations than those proposed by the likely Democratic nominee, Vice President Kamala Harris. The Republican Party has generally favoured lighter regulation for crypto, in contrast to Democrats’ attempts to tighten control over the sector.

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Trump warned that failing to embrace cryptocurrency and Bitcoin technology would allow other countries, particularly China, to gain a competitive edge. Despite China’s strict controls on cryptocurrency, Chinese investors still find ways to trade and invest in crypto assets.

Trump proposed establishing a crypto presidential advisory council and creating a national stockpile of bitcoin using cryptocurrency seized in law enforcement actions. He assured the audience that his administration would keep 100% of all the bitcoin the US government currently holds or acquires in the future.

Additionally, Trump advocated for the expansion of bitcoin mining by US firms, despite his previous negative stance on cryptocurrency. His speech caused a temporary dip in the price of bitcoin, which then rebounded, showing a slight increase to $68,182.

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Trump also 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 illegal transactions. This announcement was met with enthusiastic applause and chants of “Free Ross” from the crowd.

Globally, there is concern that privately operated, highly volatile digital currencies could undermine government control of financial and monetary systems, increase systemic risk, promote financial crime, and harm investors.

However, proponents of digital assets argue that cryptocurrency users are becoming a significant political force in the current election cycle. While it remains uncertain how many voters will prioritize crypto over other issues, Trump’s proposals have garnered support from some crypto advocates.

Jack Mallers, CEO of global bitcoin app Strike, described Trump’s proposal for a strategic bitcoin reserve as an “unbelievable vote of confidence.” Meanwhile, crypto executives have expressed frustration with the Securities and Exchange Commission’s enforcement actions under President Joe Biden’s administration.

The SEC has accused several crypto companies, including Coinbase and Binance, of facilitating the trading of digital assets that should have been registered as securities, a claim the companies deny.

In response to these regulatory challenges, nearly 30 Democratic lawmakers and Congressional candidates sent a letter to the Democratic National Committee and Harris, urging a forward-looking approach to digital assets. They emphasized the significant electoral impact of crypto and blockchain technologies in securing victories across the ballot.

As the 2024 presidential election approaches, Trump’s focus on cryptocurrency could influence voters who are passionate about digital assets, potentially swaying the election dynamics in his favour.