After a four-year hiatus, Donald Trump, who is about to return to the White House, has promised to become a president supportive of cryptocurrencies like Bitcoin since his campaign. During his presidential campaign, he fully embraced digital assets and stated that he would make the U.S. the 'cryptocurrency capital' and a 'Bitcoin superpower.' More significantly, the incoming U.S. government, set to take office in January next year, is likely to show long-term support for the development trend of cryptocurrencies like Bitcoin.
According to some federal documents and recent public statements, newly elected Vice President JD Vance and several candidates nominated by Trump for federal government positions have publicly disclosed or discussed their involvement with cryptocurrencies like Bitcoin through asset ownership or related business interests. Therefore, some Wall Street analysts recently humorously noted that the 'cryptocurrency investor' group is also an important force within Trump's cabinet.
These candidates for federal government positions nominated by Trump who support cryptocurrencies include Robert F. Kennedy Jr., Howard Lutnick, Peter Hegseth, and Tulsi Gabbard—Trump has nominated them to serve as Secretary of Health and Human Services, Secretary of Commerce, Secretary of Defense, and Director of National Intelligence, respectively, making them a cabinet that is 'fully supportive of cryptocurrencies.'
If the aforementioned nominated candidates ultimately succeed in leading these key federal departments, it would be an unprecedented event in U.S. politics—indicating a collective exposure to the new asset class of cryptocurrencies within the presidential cabinet.
Even Trump himself has admitted in some past disclosure documents that he is a fan and investor in digital assets. According to disclosures from the Federal Election Commission in August, he personally holds the second-largest cryptocurrency by market value, Ethereum (ETH-USD), worth up to $1 million to $5 million, just behind Bitcoin. Adding to this, with the nomination of Elon Musk—the world's richest man and CEO of Tesla, who has been dubbed the 'Godfather of Crypto' by cryptocurrency fans—as the head of the U.S. 'Department of Government Efficiency,' this lineup can be considered a 'galactic fleet' in the cryptocurrency field.
Trump and his sons are also strong supporters of World Liberty Financial, a popular cryptocurrency project they have heavily promoted on social media.
As part of a promotional plan, the limited liability company owned by the Trump family will receive 22.5% of the cryptocurrency (WLFI-USD) under the project, as well as 75% of any net income World Liberty receives after $30 million.
According to U.S. federal law, even if there are potential conflicts of interest, the President and Vice President do not need to divest any cryptocurrency assets after taking office, although a law passed in 1977 does require them to submit an annual disclosure list detailing their income, assets, and debts.
In August, newly elected Vice President Vance revealed that he holds Bitcoin (BTC-USD) worth between $250,000 and $500,000; it is currently unclear whether he still holds these assets.
However, for some key cabinet nominees in Trump’s government, matters may become more complicated.
If these digital assets pose potential conflicts of interest with their management responsibilities, they will have to divest these assets. A letter from the Office of Government Ethics (OGE) in 2022 clearly states that this regulation also applies to cryptocurrencies like Bitcoin.
Trump's cabinet is taking shape, with all members being cryptocurrency fans! They are even considering establishing a 'cryptocurrency czar.'
'Of course, many core members of this government are very interested in cryptocurrencies when they join the government,' said Ian Katz, managing director at Capital Alpha Partners, in an interview. 'They supported cryptocurrencies during Trump's campaign and certainly hope for good performance and robust growth of cryptocurrencies like Bitcoin, even if they have to sell their cryptocurrency assets.'
Longtime anti-vaccine activist Robert F. Kennedy Jr. is also a cryptocurrency enthusiast. In June 2023, he revealed that he holds Bitcoin assets worth between $100,000 and $250,000.
Last July, while attending a Bitcoin conference in Nashville, he publicly stated: 'I have invested a lot of personal wealth into it, not just to make money, but because it aligns very closely with my values.'
Another Trump nominee—Lutnick, nominated for Commerce Secretary—has stated he will divest his holdings in Wall Street's top asset management firm, Cantor Fitzgerald, where he is the CEO.
It is understood that Cantor Fitzgerald plays a crucial asset management role for Tether, the largest stablecoin issuer globally, in managing U.S. Treasury securities that support its stablecoin (USDT-USD) system.
Media reported last week that Cantor's relationship with this stablecoin issuer is even closer. Earlier this year, the two companies reportedly reached an agreement where Cantor acquired 5% ownership of Tether.
Media reports indicate that after meeting with Lutnick in May, Tether founder and CFO Giancarlo Devasini told colleagues that Lutnick would seek to block any legislation that could harm Tether.
According to a statement, Lutnick indicated that if his position is ultimately confirmed, he will sell his holdings in Cantor Fitzgerald and its affiliated companies 'to comply with U.S. government ethical standards.'
Another core cabinet member, Peter Hegseth, whom Trump nominated as U.S. Secretary of Defense, is also a federal government candidate who admits to holding Bitcoin.
The day after Trump won the election, the 44-year-old Fox News political commentator and former Army National Guard officer admitted in a live television broadcast that he sold 'some assets worth quite a lot.' 'But I still hold a bunch of assets, so I feel good,' Hegseth added in the interview.
It is currently unclear whether he still holds Bitcoin, and if so, whether he would participate in cryptocurrency policy decisions.
It is not yet clear whether Gabbard, who Trump has chosen to lead U.S. intelligence agencies, will participate in formulating cryptocurrency policies.
According to a public document, when she served as a congresswoman in Hawaii's second district, she revealed that as of December 2017, she held Ethereum and Litecoin (LTC-USD) worth between $1,000 and $15,000. It is currently unclear whether she still holds any cryptocurrency assets. She revealed her enthusiasm for cryptocurrencies during a speech at the 2023 Miami Bitcoin conference.
More significantly, reports have revealed that Trump's core team intends to create a senior position in the White House specifically responsible for cryptocurrency policy. According to political circles in the U.S., whoever occupies this position will be the 'cryptocurrency czar,' the highest-level official overseeing federal policies and industry regulation related to cryptocurrencies.
Recent reports suggest that the Trump-led U.S. federal government may plan to elevate the cryptocurrency industry to an unprecedented level. If the rumor about Trump establishing a 'cryptocurrency czar' is true, it would be the first-ever position in the White House specifically responsible for cryptocurrencies, highlighting the new U.S. administration's emphasis on the emerging cryptocurrency industry.
Additionally, the outgoing chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has always had a critical stance towards cryptocurrencies, while Trump may appoint a financial industry professional supportive of cryptocurrencies to succeed Gensler at the SEC, paving the way for other cryptocurrency ETF issuances.
'Can the wild Bitcoin continue to soar?'
Recently, the value of stablecoins has surged rapidly along with the skyrocketing prices of cryptocurrencies like Bitcoin, primarily due to Trump's election as U.S. president and his impending return to the White House after four years, prompting cryptocurrency enthusiasts to collectively bet on the more favorable and lenient regulatory expectations that the new U.S. government under Trump may bring, potentially leading to new prosperity in various fields of this risk asset class.
According to statistics from CoinGecko, since the U.S. election, the total value of the cryptocurrency market has increased by nearly a trillion dollars, surpassing $3.2 trillion, ranking it just below Apple and Nvidia in the global stock rankings. This implies that if the cryptocurrency market were considered a separate stock, its market capitalization would follow only Nvidia and Apple, far ahead of other top global listed companies like Amazon, Google, Meta, Tesla, and Saudi Aramco.
The leader of the cryptocurrency market, Bitcoin, briefly approached the epic milestone of $100,000 last week but has since retreated, currently trading around $97,500.
The total market value of Bitcoin currently hovers around $1.8 trillion, long being the largest cryptocurrency. Recently, Wall Street investment firm Ned Davis Research upgraded Bitcoin to 'buy only' and believes it is expected to soar above $120,000 by next spring.
Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, believes that after Trump wins the U.S. presidential election, Bitcoin's price will reach $125,000 by the end of this year and $200,000 by the end of 2025. Top U.S. venture capitalist Tim Draper has maintained a bullish outlook on Bitcoin's price since 2014 and stated in a recent interview that he expects Bitcoin's price to reach around $120,000 by the end of this year and potentially $250,000 by 2025.
Market participants have noted that cryptocurrency exchange-traded funds (such as Bitcoin ETFs in U.S. stocks) are being heavily purchased by investors, which may indicate that Wall Street financial institutions are making significant buys, as financial institutions often tend to avoid holding cryptocurrencies directly due to their volatility. According to institutional statistics, 12 Bitcoin ETFs in U.S. stocks, including those from BlackRock and Fidelity, attracted $6.2 billion in net inflows in November, setting a historical record, surpassing the $6 billion record set in February.
