According to the latest data from FOX NEWS, Trump has successfully secured 277 electoral votes, leading Vice President Harris's 226 votes, almost announcing that he has locked in the victory of the 2024 U.S. presidential election. This not only marks a symbolic moment for Trump's return to the White House after four years but may also have far-reaching implications for the cryptocurrency industry.
Meanwhile, Bitcoin's price also broke through $75,000, setting a new historical high. The market seems to find momentum in the news of Trump's election, with cryptocurrencies surging across the board, and the market is booming. Trump's victory not only signifies his personal political comeback but also symbolizes a potential strong recovery in the cryptocurrency market.
It is worth mentioning that during his previous term, Bitcoin rose by 3900%, starting at $898 and ending at $35,900 on his last day in office.
Today, as we stand on the threshold of the 2024 election, looking back at Trump's various actions and statements regarding cryptocurrency over the past 8 years, it can be said to be a remarkable case of policy transformation. From an initially sharp critic to a potential supporter, Trump's 'gorgeous comeback' actually brings many significant transformative opportunities for the global cryptocurrency industry.
This article will take you through Trump's series of 'plot twists' regarding cryptocurrency from 2016 to 2024. We will analyze the deep reasons behind these changes and see how Trump transformed from a skeptical 'Matrix' critic of cryptocurrency into a staunch supporter of cryptocurrency. Along the way, we can also look to the future and consider the significant changes in U.S. financial policy that may result from Trump's return to the political stage and his policy direction towards cryptocurrency.
2016: Trump's initial attitude towards cryptocurrency upon election
In 2016, Donald Trump won the U.S. presidential election against Hillary Clinton, becoming the 45th president. Although cryptocurrency (at that time, Bitcoin's price stabilized below $1,000) had already emerged in the digital currency circle, it had not yet become a mainstream political issue before Trump took office. During his campaign, Trump made almost no public statements about Bitcoin and other cryptocurrencies, and he maintained a cautious attitude towards emerging financial technologies. His policy proposals focused on America's economic interests, advocating for 'America First' and opposing excessive government intervention in the market. This stance implied his potential acceptance of innovative technologies while also indicating his vigilance towards potential risks in the financial market.
At the beginning of Trump's election, cryptocurrency was still in a relatively early stage. Although its market value continued to expand, it was still far from becoming a mainstream investment product. Trump's specific stance on cryptocurrency had not been explicitly revealed; he focused more on observing market developments while increasing reliance on traditional financial markets.
2019: Trump's initial criticism of the 'dangers' of Bitcoin and cryptocurrency
Entering 2019, cryptocurrencies had experienced a wild bull market, with Bitcoin rising from under $1,000 to a peak of $20,000, followed by a long bear market in 2018.
Perhaps it was the volatile rise and fall of cryptocurrencies that attracted Trump. He began to express negative views on Bitcoin and cryptocurrency in public. In July 2019, Trump took to social media to openly criticize Bitcoin and other cryptocurrencies. He tweeted, 'I am not a fan of Bitcoin and other cryptocurrencies, whose value is highly volatile, based on 'thin air', and may facilitate illegal activities.' He believes that cryptocurrencies lack any intrinsic value and are easily used for money laundering and drug trafficking.
This expression of opinion marked Trump’s first public opposition to cryptocurrency. In Trump’s view, decentralized assets like Bitcoin lack the stability of traditional currencies and pose uncontrollable market volatility risks. He particularly worries that this non-traditional monetary system could provide funding channels for criminal activities, increasing instability in the financial system.
Moreover, during this period, Trump also strongly opposed Facebook's Libra project, believing that the cryptocurrency launched by Facebook would challenge the dominance of the dollar and threaten the global financial order. His position is clear: although cryptocurrencies have some innovative aspects in certain areas, they are unsuitable as part of a national currency system and are difficult to regulate.
2021: Melania Trump's NFT project, the Trump family's initial foray into blockchain
Although Trump himself kept his distance from cryptocurrency, his wife, Melania Trump, entered the blockchain field in 2021, launching her own NFT project. This project is based on the Solana blockchain, and Melania Trump issued an NFT artwork named 'Melania’s Vision', quickly attracting market attention.
Melania's NFT project not only signifies the Trump family's first investment and attempt in the cryptocurrency field but also reveals the Trump's family's recognition of the potential value of blockchain technology. Although Trump himself continues to regard cryptocurrency as a 'dangerous' financial tool, Melania's actions indicate that even family members of Trump are gradually accepting digital assets as a new investment method.
2022-2023: Trump personally launched the NFT project, gradually changing his view on cryptocurrency
In September 2022, Trump himself also took a step into the cryptocurrency field by launching his own NFT project. The first batch of this NFT included 45,000 digital cards showcasing Trump in various roles, from an astronaut to a cowboy, seemingly telling the world that in Trump's universe, anything is possible—except for adding a 'superhero' setting! This set of NFTs quickly sold out in a short time, generating millions of dollars in revenue.
This move not only brought money to Trump himself but also made his name popular again on social media platforms. For Trump, capturing traffic is the key, while making money is merely a side product. After all, utilizing the 'blockchain hotspot' of NFTs, Trump not only returned to the public eye but also made a profit; it's a win-win, or even a triple win—imagine, he not only enhanced his brand value but also 'casually' made a lot of money, and for his fans, these NFTs might have become 'collectibles', increasing in value… if they don’t mind the quality of the images.
However, of course, Trump's 'adventure' is not without controversy. Former White House advisor and Trump's chief strategist during his administration, Steve Bannon, criticized Trump's actions bluntly. He stated, 'Anyone who suggests the former president launch NFTs should be immediately fired; Trump shouldn't be doing this anymore; we are now fighting to campaign for president.' Bannon's criticism is not unfounded, as this behavior could affect Trump's image, especially when he faces serious election moments.
Among some of Trump's supporters, this move also sparked controversy. Some MAGA supporters believe that this 'commemorative card for $99' is nothing but extortion of their wallets, with one person bluntly stating, 'We are now working hard to campaign for the presidency; how can we make a little money off us in this way?'
In addition to having 'enemies inside and outside', Trump's NFT project has also sparked a lot of complaints in the crypto community. Critics claimed that this set of cards has 'rough and blurry images', and Trump's expressions and actions are almost the same template, leading one to question whether this 'former president' has any affection for image editing tools. Even more shocking is that some card designs resemble existing brand photos, and some clothing appears to be sourced directly from e-commerce websites, with some images showing watermarks that were not removed, seemingly raising some 'infringement' suspicions.
Nevertheless, Trump still insisted on his choice and promoted this NFT release as a 'big event' for his first experience with blockchain and NFT technology. This is clearly not because Trump has a deep understanding of blockchain, but rather because he is more focused on the traffic effect and brand value. After all, Trump is known for his 'unique vision' in business: whether in real estate, beauty pageants, or wrestling, he has always shaped his personal brand through cross-industry marketing. In his view, this NFT project is just another appearance of the 'Trump' brand—exchanging traffic for attention, making money from branding, and using 'heat' to continue shaping himself as a national talking point.
However, this series of actions also brought Trump a 'reverse effect'. Many believe that Trump's approach is merely a way to earn quick money and attract attention, rather than a genuine contribution to blockchain technology. Some critics even mockingly said, 'NFT is just Trump’s 'truth is fragrant' law being validated again,' seemingly disgusted, yet in reality enjoying it, making money and becoming popular; it's just a big circle.
But then again, whatever Trump does always attracts widespread attention, and NFTs may not necessarily be a failed attempt. Perhaps Trump's action this time will really lead a wave of the political circle into the Web3 trend, and other candidates might follow suit by issuing NFTs to enhance their electoral influence, build their brand, and connect with more voters and supporters.
Overall, this NFT release signifies that the once dismissive Trump towards cryptocurrency has been completely won over by the 'truth is fragrant' law. Although it doesn’t involve much technical depth, through this action, Trump not only reignited public attention but also conveniently made a substantial profit. For him, this might just be a 'side project', but for the cryptocurrency industry, it represents a breakthrough in traditional marketing and an alternative attempt to enter political elections.
2024: Trump's cryptocurrency-friendly stance and future policy commitments
After Trump made comments at the 2024 Bitcoin conference held in Nashville, this political plan was compiled. He stated at the conference, 'I assure the Bitcoin community that on the day I take office, Joe Biden and Kamala Harris's anti-cryptocurrency campaign will end,' firmly declaring, 'This campaign will end. It will be completed.'
Before the 2024 U.S. presidential election, Trump explicitly stated his pro-cryptocurrency stance in his campaign and plans to attract support from the cryptocurrency industry in the future by reducing regulatory constraints on cryptocurrencies. He promised to implement a series of pro-cryptocurrency policies if successfully elected president, pushing the U.S. to become a global cryptocurrency hub.
Trump's commitments regarding cryptocurrency policy include:
Reducing regulatory barriers for cryptocurrency: Trump pledged to reduce excessive regulation of the cryptocurrency industry to promote a more friendly policy environment and provide space for the further development of the cryptocurrency market.
Strategic Bitcoin reserves: Trump stated he would establish a 'strategic Bitcoin reserve', similar to traditional gold reserves, to ensure Bitcoin's important role in the U.S. economic system. Fortunately for Trump's plan, Senator Cynthia Lummis proposed a bill to establish a strategic Bitcoin reserve, which, if approved, would create a Bitcoin fund to hedge national debt. The goal is to acquire 1 million BTC within five years and hold it for at least 20 years. With Congressional support, Trump's plan to create a Bitcoin reserve could actually have a chance of realization. However, this requires some fellow lawmakers to recognize Bitcoin's potential.
Cryptocurrency can solve the $35 trillion U.S. national debt: National debt is the total amount of unpaid borrowings accumulated by the U.S. federal government throughout its history. According to Treasury data, U.S. federal debt has increased from $394 billion in 1924 to over $35 trillion in 2024. The continuously increasing debt poses imminent risks that could lead to severe long-term economic challenges. At an event related to his NFT collection, Trump claimed, 'Cryptocurrency has a bright future. I believe it does. Perhaps we will repay the $35 trillion in cryptocurrency.'
Opposing Central Bank Digital Currency (CBDC): Trump firmly opposes the issuance of a central bank digital currency in the U.S., believing it will threaten financial privacy and weaken individuals' control over financial assets. At the Bitcoin conference held in Nashville, Trump stated, 'During my presidency, there will never be a CBDC,' and called the technology a looming threat to financial privacy. Trump is not the only one opposing CBDCs: many Republican politicians have publicly stated their opposition to CBDCs, and Florida Governor Ron DeSantis signed a bill limiting the use of CBDCs in the state.
Supporting Decentralized Finance (DeFi): The Trump family expressed their investment intentions in digital assets and decentralized finance by launching a DeFi project called 'World Liberty Financial', particularly focusing on cryptocurrency lending services on the Ethereum network, with over 833.73 million WLFI sold in the public sale, raising over $12.5 million. Related reading: Trump's crypto project: WLFI, an experimental field where capital and power intertwine.
Regarding the SEC Chairman's stance: Trump stated that if he successfully becomes president, he will fire the current Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, on his first day in office and nominate a leader more favorable to cryptocurrency to promote the compliance development of the industry. Firing the SEC Chairman may not be as easy as Trump imagines. Although he does not need Senate approval to dismiss Gensler, such a hasty removal of an influential regulator could set a dangerous precedent and face political backlash. The president must have 'just cause' to fire the SEC Chairman, meaning Trump must prove the dismissal's justification based on neglect of duty, inefficiency, or other forms of misconduct. Furthermore, determining the cause, legal review, and the entire administrative transition process could take more than a year.
Accepting cryptocurrency donations: Trump's campaign team accepts cryptocurrency donations through Coinbase Commerce, demonstrating his shift in attitude towards cryptocurrency and actively seeking support from the cryptocurrency community.
Releasing Silk Road operator Ross Ulbricht: At the Libertarian National Convention, Trump reiterated that on 'his first day in office', he would reduce Ross Ulbricht's sentence. Ulbricht founded the dark web marketplace Silk Road, allowing illegal transactions of drugs, weapons, and other illicit goods. Ulbricht's sentence is highly controversial due to its severity—double life imprisonment plus 40 years without parole for non-violent crimes. Critics argue that his punishment is excessive compared to similar offenses and raise concerns about judicial overreach, precedents for crimes in the digital age, and the treatment of first-time, non-violent offenders in the criminal justice system. 'We will bring him home,' Trump assured, claiming that his prison term has been long enough, 'he has served 11 years.' Trump could quickly fulfill his promise since the U.S. president has the authority to reduce sentences or alleviate convictions for federal crimes.
Establishing a cryptocurrency advisory board to formulate precise cryptocurrency policies: Cryptocurrency is a broad and complex topic, especially for regulators. Trump stated in Nashville that if re-elected, he would establish a presidential advisory committee to ensure a solid regulatory framework is enacted for cryptocurrency. Trump said, 'We will make regulations, but from now on, the rules will be made by those who love your industry, not those who hate it.' Trump indicated that the cryptocurrency committee's task is to 'design transparent regulatory guidelines in the interest of the entire industry, which they will complete within 100 days.'
The right to self-custody of cryptocurrency: Trump further pledged to grant self-custody rights to cryptocurrency users, effectively enshrining 'Not your key, not your coin' into U.S. federal law. Legislation proposed by Republican Senator Ted Budd supports Trump's commitment to cryptocurrency self-custody. He introduced the (Keep Your Coins Act) in the Senate on November 7, 2023, aiming to prohibit restrictions on Americans' ability to transact through self-custodied cryptocurrency wallets. This Republican legislator's proposal contradicts a measure introduced by Democratic Senator Elizabeth Warren in 2022. The bill, known as the (Digital Assets Anti-Money Laundering Act), requires cryptocurrency market participants to identify and track users with self-custody wallets, including cryptocurrency wallet service providers, miners, and validators.
Summary: Trump's transformation in cryptocurrency policy
From the indifference and skepticism when he was elected president in 2016, to the comprehensive support for cryptocurrency policies proposed in 2024, Trump's attitude towards cryptocurrency over the past 8 years should not be underestimated. Through his NFT project, his family's involvement in blockchain, and his gradually shifting public stance, Trump has come to recognize the enormous potential and future direction of the cryptocurrency market.
In response, many institutions have begun to predict
President of the ETF Store: Allowing staking Ethereum ETFs will definitely pass, and if Trump is elected, he will accelerate this process. Under Trump's leadership, this situation will occur more quickly. Additionally, Nate Geraci stated that the net inflow of Ethereum ETFs returning is only a matter of time.
Standard Chartered Bank analyst: Trump's victory will boost Bitcoin to reach $125,000 by the end of the year. If the Republican Party (Trump) achieves significant victories in the U.S. Congress, Bitcoin prices will experience greater volatility, potentially bringing Bitcoin to $125,000 by year-end and triggering a new wave of altcoin frenzy.
Trump's shift in attitude towards cryptocurrency undoubtedly injects new vitality into the cryptocurrency industry and provides a more relaxed policy environment for the application and development of crypto assets in the global financial system. Trump's victory will have a profound impact not only on the U.S. economy but will also further promote the legalization and standardization process of global cryptocurrency.
