Republican presidential candidate Donald Trump has positioned himself as a cryptocurrency advocate, dubbing himself a "crypto president" and criticising Democratic efforts to regulate the industry.
He vowed to reverse the anti-crypto stance of President Joe Biden and the United States (US) Securities and Exchange Commission (SEC) Chair Gary Gensler swiftly upon re-election.
While Trump expressed the importance of cryptocurrency and his support for the sector, he did not elaborate on a concrete policy framework.
Given his history of prioritising rhetoric over action, there is scepticism about whether his sudden enthusiasm for crypto will translate into meaningful policy changes or if it is merely a tactic to court crypto-friendly voters.
The depth of Trump's understanding of cryptocurrency and his ability to deliver on his promises remain iffy.
Trump Wants to Add the Moniker "Crypto President" to His Name
At a fundraiser hosted by tech venture capitalists David Sacks and Chamath Palihapitiya in the upscale Pacific Heights area, Trump garnered $12 million in donations.
The cryptocurrency sector, facing intense regulatory scrutiny and reeling from the 2022 bankruptcies of major firms that led to investor losses and exposed fraud, is actively seeking to influence US politics.
Trump emphasized the importance of crypto and his support for the industry, according to Republican National Committeewoman Harmeet Dhillon, though he did not provide specifics on his crypto policy plans.
Trevor Traina, a San Francisco-based tech executive and former Trump ambassador to Austria, said:
"He said he would be the crypto president."
Vying to unseat President Biden in the 5 November election, Trump has pledged to overturn Biden and Gensler's anti-crypto policies within an hour of taking office if re-elected.
Jacob Helberg, an adviser to data analytics provider Palantir, expressed:
"President Trump made clear that the Biden-Gensler crusade against crypto will grind to a halt within one hour of a second Trump administration."
He also mentioned Senator Elizabeth Warren's opposition to crypto.
Despite San Francisco's liberal leanings, several prominent local venture capitalists and crypto investors have endorsed Trump, citing concerns over what they perceive as excessive regulation.
Dhillon noted that executives from Coinbase, along with Gemini co-founders Tyler and Cameron Winklevoss and other prominent figures in the crypto industry, attended the event on Thursday.
Trump's First Official Rally Since Felony Conviction
Trump wrapped up a rally on 9 June in Las Vegas' sweltering 110-degree heat, preparing for a virtual interview with probation officers the next day as part of his hush money trial defense.
The interview will be conducted today via video conference from his Mar-a-Lago residence in Florida, with his lawyer Todd Blanche in attendance.
Trump's campaign spokesman, Steven Cheung, said in statement Sunday:
“President Trump and his legal team are already taking necessary steps to challenge and defeat the lawless Manhattan DA case."
Although New York convicts typically meet with probation officials alone, Judge Juan Merchan has permitted Blanche's presence.
Trump's campaign accused President Biden's Democratic allies of escalating "Witch-Hunts" and abusing power to interfere in the election.
Judge Merchan has set Trump's sentencing for 11 July, with the potential for penalties ranging from probation to four years in prison.
At the Las Vegas rally, Trump criticised Biden's immigration policies, called a recent asylum halt "bulls***," and labelled Biden as "incompetent," not just "old."
He repeated his calls to "stop the steal" and attacked the media.
Trump promised to secure the border, boost energy production, and lower prices if elected.
He also claimed that Russia's invasion of Ukraine and Hamas's attack would not have occurred under his presidency.
Trump boasted of his campaign's fundraising success and rising poll numbers post-trial, deriding Biden as "corrupt" and "low IQ."
He said:
“Too big to rig, that's what we want, too big to rig.”
He concluded by warning of the world's proximity to "World War III," envisioning a conflict fought with nuclear weapons of unprecedented power, seemingly overlooking the atomic bombings of Japan in 1945.
He thanked attendees, notably Congresswoman Marjorie Taylor Greene, for their support.
Is Anti-Crypto Biden Softening to Crypto in a Desperate Attempt to Win More Votes?
Trump's evolving position on cryptocurrency mirrors a broader trend in US politics, as crypto gains significance among voters.
Surveys indicate that over 20% of Americans have invested in crypto and view it as a pivotal issue.
The Biden administration has reportedly initiated crypto outreach efforts, coinciding with Trump's pro-crypto stance.
The SEC has also adjusted its approach to spot Ethereum ETFs, approving them on 23 May after earlier expected denials.
Anthony Scaramucci, founder of SkyBridge Capital, speculates that President Biden may align with the crypto industry, even if it contradicts Gensler's views.
Scaramucci suggests that Biden's stance on Bitcoin and crypto could be influenced by the recent approval of spot Ethereum ETFs, indicating a potential shift towards a more favorable view of cryptocurrencies.
He speculated:
“I think the Biden team, they vetoed this bill (SAB 121) last week but they did get the Ethereum stuff passed despite Elizabeth Warren and Gary Gensler not wanting it. I think they're going to pivot…I think they're going to pivot now on Bitcoin and crypto assets. I don't think Biden, who is a moderate, I don't think he wants to be left out in the dark on this. This is a razor-thin election, and I don't think Joe Biden wants to lose this election because of the capricious whims of Elizabeth Warren or Gary Gensler.”
Biden's 2022 executive order focused on fostering the responsible development of digital assets, prompting regulators like the SEC and CFTC to provide guidance and rules to mitigate crypto risks.
The White House has expressed willingness to collaborate with Congress on a regulatory framework for cryptocurrencies.
Spokesperson Robyn Patterson emphasized the administration's support for digital asset innovation while prioritising consumer protection from the risks associated with emerging technologies.
Gary Gensler Takes a Swing at Crypto Exchanges
On CNBC last week, SEC Chair Gensler cautioned cryptocurrency exchanges that mere disclosures to investors do not insulate them from regulatory action.
He underscored that disclosures are insufficient if exchanges are involved in market manipulation or spread misleading information that impacts investment choices.
Gensler also noted that many crypto firms fail to provide any disclosures, operating in ways that would be deemed unacceptable in traditional financial markets.
He said:
“These crypto exchanges, Jim, are doing things we would never allow this New York Stock Exchange to do. Our laws don’t allow you to trade against your customers.”
The SEC is currently engaged in legal battles with major players in the US cryptocurrency market, including Coinbase, the largest exchange by daily trading volume in the US.
Gensler has adopted a more nuanced stance when discussing the possibility of crypto ETFs, particularly those related to meme coins like BONK on the Solana network.
This moderated approach is consistent with the SEC's recent approval of spot Ethereum ETFs, a move that surprised many given the previous classification of Ethereum as an unregistered security.
Gensler has suggested that such products should be registered as securities, although it remains unclear whether he fully understands the nature of meme coins associated with public figures that are not issued by the individuals themselves.
Trump's Penchant for Empty Promises
CNN's Abby Phillip has drawn attention to former President Trump's tendency to promise the unveiling of ambitious plans within two weeks, only to never materialise them.
In April, the presumptive GOP presidential nominee pledged to reveal his plans for access to abortion medication, stating it would come within the next week or two.
This pattern of promising plans in two weeks is a recurring theme for Trump, as evidenced by a montage aired on "Newsnight" showing Trump during his presidency hinting at imminent proposals on various issues such as health care, taxes, infrastructure, and the coronavirus pandemic.
She added:
“Well, surprise! It is June, and there is still no plan, and, according to sources, those plans don't exist. It's been 10 years...and we're still waiting on a health care plan, by the way.”
Recently, Trump has appeared to shift his stance on cryptocurrency, adopting a more accommodating approach and promising a favourable future for the industry in the US.
The question arises whether Trump's newfound interest in crypto is genuine or merely a strategic move to garner votes as the election approaches.
Following the Biden administration's threat to veto the H.J.Res. 109 SEC crypto bill, which would enable US-regulated financial institutions to custody cryptocurrencies, Trump has capitalised on the crypto community's dissatisfaction with Biden, claiming that crypto is leaving the US due to hostility.
Trump has suggested that to prevent the exodus of the crypto industry, the US must be more welcoming.
However, scepticism remains about Trump's true understanding and commitment to cryptocurrency.
Mónica Taher, a former director for the government of El Salvador, has criticised the opportunistic use of crypto by some politicians to enhance their image as innovators, pointing to Trump's initial opposition to cryptocurrencies and his recent acceptance of donations in crypto due to financial troubles.
Andrew M. Bailey, a fellow at the Bitcoin Policy Institute, believes Trump's pro-crypto stance is a reaction to Senator Elizabeth Warren and the Biden administration's approach, fitting a pattern of positive rhetoric without substantial follow-through.
Taher emphasizes the importance of financial inclusion over political posturing and advises trusting only those politicians who genuinely educate their constituents about the new monetary system.
Venture capitalist Tim Draper has also criticised regulators' lack of knowledge, highlighting that many trying to regulate crypto do not even own a crypto wallet.
With the November elections still over five months away, there is ample time for candidates' positions to evolve or for Trump's legal issues to develop further.
Given Trump's history of prioritising talk over action, there is a risk that his sudden enthusiasm for crypto could lead to unfulfilled promises aimed solely at rallying crypto voters.
To create a decisive voting bloc of crypto holders, Trump will need to demonstrate his advocacy through concrete plans for the industry.
Otherwise, his promises may be viewed as just another empty political gesture.
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