Skip to content
Donald Trump declared victory in the 2024 presidential elections and has become the 47th President of the United States. So, naturally, we ask, what does this mean for crypto? While campaigning over the past months, Trump has been vocal on his support of Bitcoin, appearing as a keynote speaker at the 2024 Bitcoin Conference. Trump’s endorsement of Bitcoin at the time caused Bitcoin’s value to rise, as he promised to remove SEC Chair Gary Gensler immediately, support Bitcoin mining in the U.S., establish a national Bitcoin reserve, block the creation of a central bank digital currency (CBDC), among other actions. While these plans point to a brighter future for crypto in the U.S., the community remains cautious about whether they will, in fact, be fulfilled.
As Trump declares victory, we take a look back over his recent promises for Bitcoin, how the market has reacted to the news, and what critics say about his pro-crypto rhetoric.
Trump’s promises for crypto
Over the course of his presidential campaign, Trump committed to reshaping crypto regulations in the U.S. First of all, and he promised he would remove SEC Chair Gary Gensler due to the crypto community’s dissatisfaction with the SEC’s crackdown on crypto exchanges and replace him with a more crypto-friendly profile. Gensler was originally appointed by President Biden and has pursued enforcement actions against platforms such as Coinbase, claiming many cryptocurrencies are unregistered securities. Trump also promised to commute the sentence of Ross Ulbricht, creator of the darknet marketplace Silk Road, who is serving life sentences for facilitating anonymous trade in Bitcoin on the platform.
Regarding the domestic crypto industry, Trump also vowed to promote Bitcoin mining in the U.S., envisioning the country as a hub for Bitcoin production. While the concrete strategies remain unclear, Trump’s pro-mining stance may be a forewarning of new environmental regulations on the industry, which has previously been criticized for its high energy consumption. Trump also proposed establishing a “strategic Bitcoin reserve” by holding seized Bitcoin, suggesting it could reduce the national debt, a proposal welcomed by elated cheers at the 2024 Bitcoin Conference and opposed the creation of a U.S. central bank digital currency (CBDC), arguing it would be an infringement on privacy.
Trump wins: How did the market react?
As Trump appeared to pull ahead of his opponent Kamala Harris, taking key swing states such as North Carolina and Georgia, Bitcoin surged to a new all-time high of over $75,000. The crypto initially rose by 3% during New York trading hours and peaked at $75,000.85 overnight, fueled by optimism that a Trump win might signal a more crypto-friendly government.
Analysts speculate that Bitcoin’s rally is linked to Trump’s rising odds, with his predicted victory boosting market sentiment. As the election unfolds, traders will likely continue monitoring Trump’s progress closely in anticipation of further gains. What’s clear is that Bitcoin, and by extension, the crypto market, is sensitive to political shifts, particularly the belief that Trump’s crypto-optimism could benefit the market.
Pushback against Trump’s crypto promises
Despite his claims, Trump has also been criticized for lacking a real understanding of how crypto, Bitcoin, and the economy really work. This has left many in the crypto industry cautious about blindly believing Trump’s pro-crypto rhetoric. Since announcing he was running for the presidency in November 2022, Trump seems to have turned the tables on his initial crypto stance.
Critics have noted his once skeptical views and inconsistent positions on Bitcoin, having called it a “scam.” In a 2019 tweet, he stated, “I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” His shift in tone has, therefore, raised questions as to whether his recent promises are rooted in an authentic understanding of the market or if they are more politically motivated. Only time will tell.
For more trending crypto topics, to learn more about crypto as a form of payment, and how, as a merchant or business, to accept crypto payments from your customers, visit www.forumpay.com, or get in touch with our sales team to discuss any questions.
